Cision PR Newswire
A Decade of Success: NJ Online Casinos Reach $7 Billion Milestone
News provided byOdds Seeker
Nov 21, 2023, 1:36 PM ET
OddsSeeker Unveils Insights into New Jersey Online Casino
ATLANTIC CITY, N.J., Nov. 21, 2023 /PRNewswire/ -- The narrative chronicling the remarkable 10-year journey of legalized online casinos in New Jersey extends beyond mere words. Some may contend that the statistics underpinning the unparalleled triumph of NJ's internet gambling industry are more elucidating than the most eloquent prose.
As the official decennial milestone approaches, Oddsseeker.com delves into the numerical facets of one of the most triumphant sagas in the US gaming sector. The historic ten-year run of NJ online casinos culminated in October, yielding a staggering $7 billion in gross gaming revenue and contributing over $1 billion in taxes, providing a vital lifeline to Atlantic City casinos during the throes of the Coronavirus pandemic and economic constraints.
Reflecting on the inception of NJ online gambling, history notes that on February 26, 2013, former Governor Chris Christie sanctioned Senate Bill 1565 into law. Subsequently, on October 21 and October 28, the Division of Gaming Enforcement implemented regulations overseeing internet gambling operations, including the stipulation that all patrons must be at least 21 years old.
November 21, 2013, witnessed the DGE's authorization of a "soft launch," followed by full play approval for six licensees on November 25. At 9 a.m. on November 26, 2013, legal online casino gambling in NJ commenced, resulting in the creation of more than 126,000 online user accounts that year, as reported by the Casino Control Commission.
Among the notable beneficiaries since the legalization of online gaming a decade ago, the foremost victor has unequivocally been the State of New Jersey, aside from the operators themselves. Taxing online casino revenue at a rate of 15%, the state has amassed over $1.45 billion in taxes from November 2013 to October 2023, channeling these funds towards aiding senior and disabled citizens in the Garden State.
The trajectory of online gambling revenue taxes has exhibited an upward trajectory since 2013. In its inaugural year, internet gambling contributed approximately $1.26 million in taxes. By the close of 2014, the tax contributions surged to about $18.4 million, reaching over $22.3 million the subsequent year. The trend persisted, culminating in tax collections exceeding $205.2 million in 2021, and a record-setting $250 million in 2022.
Turning attention to revenue, while conventional wisdom might suggest that casinos effortlessly generate profits, the reality for Atlantic City's brick-and-mortar establishments is less rosy. Conversely, legal online casinos have proven to be a nearly foolproof business strategy, offering the profit potential of a gambling parlor without the burdensome overhead costs.
In the initial 14 months of legalized internet gambling in NJ, operators reported a modest sum of slightly over $131.2 million. Fast forward to January 2021, and monthly online gambling revenue surpassed the $100-million threshold. New Jersey online casinos consistently exceeded $140 million each month in 2023, with three instances surpassing $160 million, including a record-setting $166.8 million in October 2023.
As NJ online casinos continue to break revenue records, the question remains: How high can they ascend from here? Only time will unveil the answer to this captivating trajectory that forever changed the landscape of online gaming in America.
About OddsSeeker: OddsSeeker.com is a leading source for iGaming news, online games, and online casino & sports betting promotions in the U.S. regulated online gaming markets.
View original content to download multimedia:https://www.prnewswire.com/news-releases/a-decade-of-success-nj-online-casinos-reach-7-billion-milestone-301995164.html
SOURCE Odds Seeker
NOTE: This content is not written by or endorsed by "KLAS", its advertisers, or Nexstar Media Inc.