(The Center Square) – New Jersey's red hot online casino industry is expected to end the year with double-digit growth, but the market is showing some signs of slowing amid competition from neighboring states, according to a new industry report.
The gambling industry's company, PlayUSA annual online gambling expansion report suggested New Jersey's mature gambling market is among those that's approaching a ceiling, citing recent revenue trends.
"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," the report's authors said. "New York’s expansion is no doubt responsible for some of the falloff, but it’s also apparent that maturity itself is approaching."
The report noted Illinois is giving New Jersey a run for its money, as its gambling market nears maturity.
"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."
New Jersey is one of four states, including Connecticut and Michigan, that offer online casino gambling.
The state's brick and mortar casinos, sports betting and online gambling outlets reported revenues of more than $445 million in October, a decline of less than 1% from the same period a year earlier, according to the latest figures from the New Jersey Division of Gaming Enforcement.
Online gambling brought in more than $147 million last month, up nearly 16% from a year ago, the agency said.
More than two dozen U.S. jurisdictions, including the nation’s capital, now regulate sports betting and/or online casino games in one form or another, according to PlayUSA's report.
"Much of the recent, rapid expansion stems from the realization that these legal operations can produce — and are producing — reliable tax revenue for these states with modernized industries," the report stated.