According to the latest industry report, New Jersey’s online casino industry is on track to end the year with double-digit growth but is showing signs of slowing as competition from nearby states increases.
Although the state enjoys a significant advantage over its neighbors in terms of market size, there is strong evidence that other states are making significant investments in their own online casino markets and looking to capitalize on New Jersey’s success. This competition could dramatically impact New Jersey’s ability to maintain its long-term growth, especially if other states launch more attractive promotions or offer more competitive rates.
New Jersey’s Gambling Market Is Approaching A Ceiling
The release of PlayUSA’s annual expansion report is always highly anticipated by those interested in the gambling industry. Every year, the report tracks the online gambling market’s growth and provides a comprehensive analysis of which states are leading the charge and which are showing signs of slowing down.
This year’s report revealed New Jersey to be one of the markets that have nearly reached its ceiling when it comes to revenue generated from internet betting. While this finding is not necessarily surprising, as New Jersey’s mature gaming industry is typically seen as more stable than others, there are still possible areas of growth.
Reason For Falloff
“While New Jersey is still on track to end the year with double-digit growth, the past few months of data reveal the first signs of an actual pullback,” As the report’s authors stated. “New York’s expansion is no doubt responsible for some of the falloff, but it’s also apparent that maturity itself is approaching.”
The industry group stated that although New Jersey might fall back economically in 2023, the market has a good chance of seeing modest growth. As Illinois’ gambling market slowly reaches fruition, it is giving New Jersey a run for its money.
“If things continue along this trajectory, the two markets should be pretty much equal in size by the end of 2023—generating between $11 billion and $12 billion in handle for the year,” the report stated. “Illinois should inch ahead of New Jersey soon by virtue of the population disparity alone.”