Real estate values in New Jersey are declining – what is the cause
New Jersey, a state known for its casinos and entertainment complexes, has recently witnessed a surprising phenomenon: online casino revenues continue to skyrocket while traditional casinos and real estate are suffering losses. This phenomenon can be attributed to the drop in personal income caused by recent events. Despite the general downturn in the economy, online slots and table games continue to attract more players, opening up new opportunities for development and revenue growth.
Key figures of the gambling industry in New Jersey
Since the legalization of online gambling in New Jersey in 2014, online casinos have seen astounding growth, attracting the attention of players and investors alike. In its first full calendar year, legal online casinos brought in nearly $10 million in monthly winnings for players. This figure surpassed the combined revenues from traditional casinos in 2014, indicating the potential of the growing online gambling sector.
Digital betting sites like Melbet or 1Win have also seen impressive growth over the past few years. Launched in 2018, they have attracted huge audiences and by February 2024, they generated gross revenue of $67.6 million, with the majority of this revenue coming from the online sector.
As in other states (as well as in many other countries around the world) melbet casino app, Parimatch, Mostbet and other well-known brands are popular among users from New Jersey. After the legalization of betting and gambling, many bookmakers and online casinos came to this large solvent market, and every year the diversity in the market is growing.
As of February 2024, total virtual gambling revenue in New Jersey has increased by nearly a quarter compared to the same period in 2023. Comparing this figure to February 2019, there is a spectacular growth of over 432% in sports betting revenues. This is a testament to the rapid growth of online gambling in the region and its significant role in the New Jersey economy. In addition, the unprecedented growth reflects new trends in consumer behavior and highlights the importance of digital platforms to offset the decline in revenue from traditional entertainment sectors.
New Jersey is entering the age of digitalization
New Jersey is not only famous for its entertainment and even nature, also known as the center of East Coast gambling, is experiencing a remarkable transformation of the gaming industry. Atlantic City, home to all nine of the state’s casinos, has recovered from a series of closures due to financial crises and the COVID-19 pandemic. However, it was recently reported that their revenues are again slightly down. Yes, and new trends in the industry indicate a gradual transition to the digital environment.
Revenues of gaming establishments are now consistently above pre-pandemic levels, but changes in consumer behavior caused by the general quarantine and the spread of online gaming indicate a new phase for the gaming industry in New Jersey.
With the advancement of technology and the convenience of online gaming, the need to play in land-based casinos is dwindling as almost all of the gaming options available in traditional gambling establishments can now be found on mobile devices. Not surprisingly, online gaming is attracting more users, increasing revenue from the gambling industry and the amount of taxes generated.
The remaining states are against casinos moving into the virtual space
Contrary to the growth of online gambling in New Jersey, other states in the US continue to resist the penetration of digital casinos. Six of them – Pennsylvania, Michigan, Delaware, Connecticut, Rhode Island and West Virginia – allow real-money gaming, with initiatives to legalize iGaming facing serious obstacles.
Opponents argue that online gaming will compete with traditional casinos, resulting in lower revenues. Objections also include concerns about potential addiction and other social problems that could arise from the increased availability of online gambling.
Nevertheless, iGaming advocates continue to point to New Jersey’s success in this area. Studies in other markets have shown that fears of the negative impact of online gambling on traditional casinos are unwarranted, and this could be proof of the positive impact digital platforms can have on the economy and increased revenue from the taxes generated.
About the Author/s
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
