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How has the New Jersey Online Casino Industry Performed in 2021?

 

How has the New Jersey Online Casino Industry Performed in 2021?
How has the New Jersey Online Casino Industry Performed in 2021?

Source: Piqsels

The US has had a rocky relationship with online gambling in recent decades, but it appears that regulated and licensed betting is firmly on the agenda in many US states, not least in the Garden State of New Jersey. New Jersey has emerged as the biggest regulated iGaming market out of all the US states, with online casino operators and online poker rooms competing for a slice of the overall piece that’s thought to be worth $225m annually.

At the time of writing, there are nine land-based licensees that are permitted by the NJ Division of Gaming Enforcement to offer land-based casino gaming. In addition, each licensee can partner with one or multiple third-party operators seeking to serve the online market. It’s possible to explore the best NJ online casino sites in detail here, with an unbiased overview of the latest new player bonuses and no-deposit bonuses available to NJ-based citizens looking to play casino games online for the first time.

It has been something of a seismic 12 months for New Jersey’s iGaming sector. It’s experienced exponential growth and continues along an ambitious growth path, ever since the overturn of the PASPA, which was dubbed a bad bet for America’s gambling industry. A recent report published by the NJ Division of Gaming Enforcement confirmed that gaming revenues – both online and offline – in New Jersey totaled $374.2 million in May 2021. That represents a year-on-year rise of 290.4% on May 2020. The $374.2 million figure was also 6% higher month-on-month, compared with total gambling revenues in April.

During the first five months of 2021 in total, gaming revenues amounted to $1.72bn in January-May 2021. That’s up 85% year-on-year when revenues totaled $929.7m. A closer look at May’s iGaming revenues in New Jersey revealed that $108.2m of the $374.2m generated was derived solely from online wagers. This represents a year-on-year rise of 25.9%. The remainder of the $374.2m revenue was derived from sports betting ($52.9m) and land-based casino gaming ($213.1m).

NJ-based iGaming operators continue to thrive

In terms of the leading New Jersey-based casino operators, Borgata contributed the most revenue to the overall coffers, posting earnings of $32.8m in May. That was followed closely by Golden Nugget ($31.1m). Meanwhile Resorts Digital ($21.6m) and Caesars Interactive ($9.2m) also posted sizeable revenue increases.

Resorts Digital was the top-performing operator in terms of NJ-based sports betting. It reported record-high levels of sports wagering revenue at $9.5m. Just under a tenth of Borgata’s overall revenue was derived from sports wagering ($3.8m), while Ocean Casino ($1.3m) and Hard Rock ($0.5m) were the next most active platforms. More iGaming operators are investing heavily in major league sports, with Bally’s Corporation the latest to announce a tie-up with the WNBA’s Phoenix Mercury franchise.

Fixed-odds wagering the next addition to New Jersey’s gambling scene

Regulated sports betting in the Garden State has been given a major shot in the arm thanks to a recent bill that passed both New Jersey houses unanimously. The Fixed Odds Betting Bill is awaiting sign-off from Governor Phil Murphy, with the aim of launching fixed-odds horseracing betting for the first time in the state at Monmouth Park racetrack for the Haskell Stakes.

Monmouth Park has been pushing for the inclusion of fixed-odds betting for its horse races for many years. It’s hoping that fixed-odds betting will have a transformative impact on betting revenues in New Jersey, in the same way that legalized, fixed-odds betting surged across Australia once approved. The Australian horseracing industry benefitted from a healthy surge in prize purses and overall betting revenue as a consequence of moving away from pari-mutuel betting.

The issue with pari-mutuel horseracing betting in New Jersey has been the fluctuation of odds, with bettors having no idea of their potential returns until the race has started or even finished. The cause of this is the high-volume handicappers that utilize computer algorithms and programs to place large wagers into betting pools in the closing seconds pre-race. In the past, sportsbooks in New Jersey have opted for the relative safety of pari-mutuel betting as they incur no risk of potential losses and can only accrue commission on wagers. A switch to fixed-odds betting is likely to increase the risk of sportsbooks, but any risk is almost certain to be offset by a surge in betting turnover.

It is said that approximately a dozen racetracks in the Garden State are signed up to accept fixed-odds wagers. At the time of writing, residents of New Jersey will only be allowed fixed-odds betting accounts, although it’s hoped that more US states will soon get on board with fixed-odds betting. According to BetMakers, the Australian firm set to oversee Monmouth Park’s fixed-odds betting, there is “good interest” in the concept from “a lot of other states”, according to its head of international operations, Dallas Baker.

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