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The casino industry has always been subject to extensive regulation and monitoring. This is even more true with the rise in online gambling in recent years. Many countries have collected vast amounts of information about the industry, its cash flows, and the players who engage in the games on offer.

This information serves a dual purpose. Firstly, it helps regulators ensure that gambling is correctly reported for purposes like taxation and helps identify areas where crime may occur. Secondly, it gives the industry and government insight into what is happening in the sector to help better regulate it for the protection of players and operators.

New Jersey, as one of the largest gambling states in the US, is well-known for this. The 2024 gambling results the state released in early 2025 show how gambling has changed in the state and paint a vivid picture of the industry.

Below, we’ll provide an overview of New Jersey’s gambling landscape in 2024 and explore what the stats could mean for the future of gambling in the region. 

Gambling in 2024

One key takeaway from the 2024 New Jersey gambling report is the industry’s continued growth. Reaching a total revenue of $6.30 billion, the industry broke its previous year’s record of $5.78 billion by 9%.

The most significant contributor to this growth was online gambling in the form of online casino games, such as slots and table games. A chief reason for this is that a prominent operator can attract many players when it develops a reputation for its outstanding collection of mobile games and other types of games. Altogether, online casino games generated $2.39 billion of the total revenue and increased a whopping 24.1% from the previous year.

Sports betting also boosted revenue by collecting $1.09 billion, breaking previous records within the state. Despite only growing 8.7% from 2023, the increase displays the popularity of placing wagers on upcoming sports events, a trend that is predicted to continue.

Brick-and-mortar casinos, however, still reign supreme in the state—largely due to the popularity of Atlantic City’s incredible gambling venues. These casinos generated the largest revenue, $2.82 billion. Ironically, although land-based casinos generated the most revenue, they were the only category to see a decline from the 2023 gambling figures—falling 1.1%.

This revenue drop highlights that, although physical casinos remain immensely popular within the state, online gambling is fast becoming a viable alternative to many players. This could be for various reasons, though accessibility, usability, and game selection are among the most prominent.

Effects for New Jersey State

The rise in gambling within the state is good news for players lucky enough to bag a big win and the local government. The industry generates incredible sums of taxable revenue, which help fund state initiatives and various public services or programs.

Aside from the millions generated in taxable income from players engaging in gambling activities, casino operators are also subject to steep taxes. These include 1.25% of gross gambling revenue and 2.5% of internet gaming gross revenue due under the Investment Alternative Act and a further 1.25% of sports wagering gross revenue due under Casino Sports Wagering Additional Tax. 

Despite significant income derived from taxes, however, the rise of online gambling and fall in physical gambling has been met with concern. This is because land-based casinos contribute directly and indirectly to the state. This occurs through taxes, local employment opportunities, and the many tourists who are keen to explore a casino complex’s activities.

In contrast, online casinos often use various methods on the condition that they fulfill legislative requirements. As such, they can work alongside external partners, taking away possible job opportunities from locals. These casinos also do little to increase tourist attraction in the state as they don’t provide a physical attraction for visitors to explore.

Changes to Regulation

Although concern over the lesser contribution on behalf of online casinos has been noted, the 2024 gambling figures have spurred on more worrying possible changes. These revolve primarily around the state’s taxation of gambling activities.

Announced after the release of the 2024 statistics, New Jersey Governor Phil Murphy has proposed sweeping changes to taxation on winnings gleaned from internet gambling and sports betting. The proposal will see an increase in the internet gaming tax from 15% to 25%. Likewise, sports betting winnings will be raised from 13% to 25%.

If the proposal is approved, the changes would generate an estimated $402.4 million in tax revenue. However, the suggestion has ignited harsh backlash, with many stating that an additional tax on winnings could irreversibly damage the gambling industry.

Amazingly, physical casinos are prominent in the protests against this change despite losing ground to online variants in the last year. Many brick-and-mortar casinos, through the Casino Association of New Jersey, are expressing the sentiment that the increase in sports betting taxes threatens casinos that have already seen a drop in visitors and revenue. 

This threat, in turn, risks these casinos’ ability to provide employment and keep properties operational. 

However, online operators such as BetMGM, FanDuel, and DraftKings have been the most vocal. They are likely to feel the brunt of the new regulation, should it be approved. These operators claim that any increase in taxes could be detrimental to operations and have voiced their concerns with numbers and reports to showcase these changes’ possible effects. 

According to these reports, FanDuel’s parent company Flutter could suffer a revenue loss of over $106 million. This, in turn, could hamper the company’s ability to offer the free bets or bonuses it has become famous for. The report also highlighted BetMGM co-owner Entain, which, should the change go ahead, would experience an estimated revenue loss of $62 million.

The Future of Gambling in New Jersey

When considering the 2024 gambling figures, the future of gambling in New Jersey appears bright and likely to flourish—with many expecting revenue records to be broken again in 2025. However, this is dependent on the industry remaining largely untouched.

Should the new proposals surrounding taxation be approved, gambling in the country will likely take a significant hit. Not only by the operators that will need to absorb the massive loss of revenue predicted, but by players who will see less of their lucky winnings than expected.