The gambling industry in New Jersey is booming and contributes a certain amount of earnings yearly to the Casino Revenue Fund. For 2022, the state was able to see over $700 million provided to the fund. The amount was boosted by New Jersey legal online casino sites, with over $249 million added. Sports betting and land-based casinos also contributed to a record-setting payment year.
NJ Casino’s Provide Record-Setting Tax Contribution in 2022
- Land-based casinos paid over $179 million.
- Online sports betting provided more than $93 million.
- Online casinos offered the biggest payment of over $249.4 million.
Online Casinos Dominate the Market
NJ online casinos have produced more taxes for the past few years than all the land-based gaming venues operating in Atlantic City. Players choose online gaming more often than not due to convenience, which leads to record earnings for iGaming brands.
Since the onset of the COVID-19 pandemic, online casinos have taken over as the dominant provider of revenues and tax payments, and that doesn’t seem to be slowing down any time soon. It is likely that this trend will continue, especially as the demographic changes to younger gamblers who rely on technology for every aspect of life.
The pandemic was a big driver for online play as land-based casinos were shut down. Operators that offered online gaming could still bring in earnings, even though players could not set foot inside a retail venue for several months. Online casinos kept the retail venues afloat and showed just how important this sector is to the overall gaming industry in New Jersey.
For 2022, the Casino Revenue Fund added $706.8 million. Online casinos contributed over $249 million, and land-based facilities added $179 million. Sports betting produced a nice total as well, adding $93 million. Retail sportsbooks added much less at under $4 million.
It’s important to note that the state does not count 2022 as the official tax payment since the accounting relies on the fiscal year. For the most recent fiscal year of July 2022 to June 30, 2023, the state added just over $500 million. Online casinos still contributed the bulk of earnings at over $266 million.
Huge Changes in Earnings
Online gaming first launched in New Jersey in 2013, and since that time, the tax payments remained steady at around $300 million. There were slight fluctuations, but it was not until 2019 and on that the revenues really started pouring in.
Online casinos today account for close to 40% of total gaming revenues on an annual basis. This shows that operators rely on iGaming for most of their earnings. The most recent earnings totals show that New Jersey is still bringing in high monthly totals. August generated over $155 million, which was a more than 18% increase from last year.
So far this year, online casinos have brought in over $1 billion in revenues. This is almost 15% more than the same time period in 2022. The industry continues to grow with new games and services added regularly. Operators go above and beyond to ensure that players always have something new to explore.
Several casinos just recently added new games to their portfolio by Bragg Gaming thanks to a partnership deal. Such sites include DraftKings Casino and Caesars Casino. The new games include Royal Seven XXL Deluxe and Alpha Gold.
This is just one example of how online casinos in New Jersey continue to expand. As the industry generates even higher revenue totals, we should see even more partnerships signed and quality content added.
New Jersey is a prime example of how a state can embrace online casinos and thrive. It will be interesting to see how the rest of 2023 plays out and the total tax payment for the year. Due to the high earning potential for the year, we should see yet another record tax payment once the full year is over.
Having started in 2005 as an online writer, Sadonna has focused on the online gambling industry, with a keen knowledge of various subjects. Sadonna has followed the growing US-based gambling industry for decades, covering all the legal changes in the nation as well as information on land-based and online casinos. She enjoys updating fellow gamblers on new games, casino bonuses, and additional information for premium gaming services. In her spare time, Sadonna loves spending time with her family and singing on Smule. Sadonna hopes to continue working in the online gambling industry and building quality articles for players to learn more about the US market.