New Jersey's Internet Gambling Boom: A Stable Investment Opportunity

New Jersey's internet gambling market has set another record, with revenues reaching $213 million in October 2024. This remarkable growth, driven by the convenience and accessibility of online platforms, presents an attractive investment opportunity for those seeking stable, predictable returns. In this article, we will explore the evolution of New Jersey's gambling landscape, the impact of the COVID-19 pandemic, and the strategies casinos are employing to adapt to changing consumer preferences.

The COVID-19 pandemic has accelerated the shift towards online gambling, with internet revenue surging while in-person casino revenue lags. In October 2024, internet gambling revenue reached a record $213.6 million, surpassing the previous record of $208 million in September. This trend, which began during the pandemic, has become more permanent, with online revenue exceeding in-person revenue for the first time since the casinos reopened in 2020. However, not all casinos have benefited equally; only three (Borgata, Hard Rock, and Ocean) saw increased in-person revenue compared to 2019 levels.

As the gambling industry evolves, investors should consider the stability and predictability of online gambling platforms, which have shown consistent growth and may offer 'boring but lucrative' investment opportunities. Borgata, Hard Rock, and Ocean casinos have effectively adapted their business models to capitalize on the shift towards online gambling. Despite in-person casino winnings declining for two-thirds of Atlantic City's casinos, these three have seen an increase in in-person winnings compared to pre-pandemic levels. Borgata, Hard Rock, and Ocean have also seen significant growth in their total revenue, including internet and sports betting, with Borgata leading the pack at $106.1 million, up 5.8%.



Casinos' partnerships with tech platforms and sports books have significantly contributed to their overall revenue growth. In October 2024, New Jersey's casinos and their online partners won a record $213.6 million, with internet and sports betting revenue accounting for a substantial portion. This marks a 2.6% increase from the previous year, demonstrating the growing importance of these partnerships. The casinos share this revenue with outside parties, but it remains a critical driver of their total earnings.

In conclusion, the rise of online gambling in New Jersey presents an attractive investment opportunity for those seeking stable, predictable returns. The ongoing success of internet gaming, coupled with the decline in in-person revenue, suggests that casinos may need to adapt their business models to accommodate this trend. By leveraging technology and diversifying revenue streams, Atlantic City's casinos can maintain their competitiveness in the evolving gambling landscape. Investors should consider the stability and predictability of online gambling platforms, which have shown consistent growth and may offer 'boring but lucrative' investment opportunities.