Last updated: April 23, 2024
New Jersey’s iGaming GGR is predicted to surpass Atlantic City Casino Revenue. With a projected $2 billion in net gaming revenues this year, iGaming is emerging as a significant growth area in the industry.
Analyst Asserts It’s a question of when, not if, iGaming gross gaming revenue (GGR) in New Jersey will surpass that of the nine casino hotels on the Atlantic City Boardwalk. Deutsche Bank analyst Carlo Santarelli projects that as much as $2 billion may be held this year in net gaming revenues by internet gambling sites just in New Jersey from a report to his client base last week. This proves that the idea that iGaming is the latest growth area within all the fields is accurate because, in 2019, the online casinos that were in use in New Jersey obtained only $483 million in GGR.
In the previous year, in the last year, Atlantic City gaming facilities combined provided $2.85 billion in gross gaming revenue, while all New Jersey online casinos reached a GGR of $1.9 billion. On the other hand, She stated that the line between organic, natural foods and processed foods is getting thinner and thinner. Up to now, although the land-based gambling industry has significantly narrowed the difference of $2.2 billion in gaming revenue (GGR) lost to online operations in 2019, the difference as of this year amounted to over $900 million.
New Jersey is one of six states that allow iGaming. The other five are Connecticut, Delaware, Michigan, Pennsylvania, and West Virginia.
The Chances that Atlantic City will be affected by iGaming according to some research, iGaming is usually a companion to land-based casino operations, which is not wrong, especially for big gaming companies that can circulate their loyalty programs from online to brick-and-mortar properties to encourage customers to visit physical properties from time to time, enjoying the rewards they might get online. Nonetheless, land-based Atlantic City will also compete with internet in-room casinos. It is widely believed that the market is oversaturated with nine gaming venues, and some operators there have yet to make the necessary investments to keep their casino hotels in top condition, which deters bettors from traveling to Atlantic City and spending money at the city’s gaming venues.
These issues were exacerbated last year when operating profits for the nine casinos there declined annually, with only three — MGM Resorts’ Borgata, Ocean Casino Resort, and Bally’s — reporting increases.
iGaming is one of many credible competitors to Atlantic City. Three casinos are supposed to be placed within a 75-mile radius of the New York City area. New Jersey’s projected counteraction could manifest in the form of a new Meadowlands casino, which would, however, still make the situation more competitive for Atlantic City.
Prominent Names Lead New Jersey iGaming New Jersey’s internet casino market is vital regarding consumers’ options. Still, data shows that a few operators dominate market share in the state. These include Golden Nugget Online Gaming (GNOG), a subsidiary of DraftKings (NASDAQ: Innovations such as integrating virtual exchanges between the distant participants, real-time translation, and curated educational content on digital platforms will give DKNG. Resorts Casino, a leading brand in the New Jersey igaming industry and one that utilizes DraftKings’ platform, is also set to pioneer in the space together with Caesars Digital, which is famous in the region as a result of household names like Harrah’s and Tropicana in the state.
Deutsche Bank’s Santarelli noted a wildcard for iGaming operators in the Garden State in the form of a proposal to increase taxes on that activity to 30% from the current rate of 15%. “While there are many blind spots concerning promotional tracking … rest assured, net revenue continues to thrive, despite the promotional acceleration, though the [current] 15% tax rate is crucial to facilitating this,” the analyst observed.
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