New Jersey Gaming Revenue Hits $586.4M in January
New Jersey’s digital gaming sector continues to drive market growth, offsetting softer sportsbook performance and stable retail casino results.
The state’s regulated gaming market generated $586.4 million in total revenue in January 2026. This represents a 5.9% year-on-year increase, according to figures released by the New Jersey Division of Gaming Enforcement (DGE).
Overall, the results confirm a clear structural shift. Digital gaming is expanding market share, while retail and sportsbook revenue remain under pressure.
Internet Gaming Drives Market Expansion
Internet gaming revenue reached $258.9 million, up 16.8% year-over-year, according to the January 2026 Monthly Gross Revenue Report published by the New Jersey Division of Gaming Enforcement.
This growth further strengthens New Jersey’s position as the most mature iGaming market in the United States.
At the operator level, leading brands maintained strong performance:
- FanDuel led with $58.9 million in online casino revenue
- DraftKings generated $48.6 million
- BetMGM reported $33.8 million
Additionally, affiliate-operated brands grew 20.4% year-on-year. DGE data shows third-party brands accounted for 67.6% of combined internet gaming and online sportsbook revenue.
This structure highlights the importance of partnerships and market-access agreements. Increasingly, operators rely on diversified brand portfolios rather than single-license performance.
Retail Casino Revenue Remains Stable
Meanwhile, Atlantic City’s nine casino hotels reported $213.3 million in revenue. This marks a modest 1.6% annual increase.
Slot machine revenue rose 3.5% to $150.6 million. However, table game revenue declined 2.9% to $62.7 million.
Performance varied across properties:
- Hard Rock Atlantic City generated $45.9 million, up 20.9%
- Ocean Casino Resort reported $35.5 million, up 0.8%
- Borgata recorded a 6.1% decline
Overall, the data suggests increasing competition within Atlantic City’s premium segment. Newer properties continue gaining share, while legacy operators face tighter margins.
Sports Betting Revenue Declines Despite $1B Handle
In contrast, sports wagering revenue fell 6.5% year-on-year to $114.2 million.
Total handle reached $1.034 billion, supported largely by parlay betting activity. The completed events win rate stood at 10.7%.
Online sportsbook revenue declined 5.3%, while retail sportsbook lounge revenue dropped sharply by 47.1%. This trend reflects continued migration toward mobile betting.
FanDuel and DraftKings remained market leaders but reported annual revenue declines. Meanwhile, BetFanatics and Bet365 posted strong percentage growth from smaller bases.
As a result, sportsbook profitability remains increasingly margin-sensitive despite stable betting volume.
Tax Contributions and Fiscal Impact
Total gaming taxes reached $86.5 million in January.
Notably, digital gaming contributed a larger share of tax revenue due to higher effective tax rates applied to online operations compared with retail casinos.
Funds were distributed across the Casino Revenue Fund, Atlantic City’s PILOT program, CRDA marketing initiatives, and racetrack municipalities. Gaming therefore continues to serve as a major fiscal contributor for the state.
Market Outlook: Structural Trends Intensify
January’s results reinforce three key industry trends:
- iGaming remains the primary growth engine
- Retail casino performance is stable but slow-growing
- Sports betting profitability faces increasing margin pressure
Looking ahead, operator success in 2026 will depend less on handle expansion and more on execution. Retention efficiency, promotional discipline, and multi-brand strategies are becoming critical competitive factors.
New Jersey continues to serve as the benchmark for U.S. digital gaming economics. However, the latest results show that scale alone is no longer enough. Profitability discipline is now the defining metric.
Official Source Link: New Jersey Division of Gaming Enforcement (DGE)
For Latest News, visit: iGamingNewsToday
Follow our LinkedIn Page for Latest Post Notifications: igamingnewstoday
