For the third consecutive month, New Jersey online casinos have surpassed the revenue generated by Atlantic City's traditional brick-and-mortar venues. This trend highlights a significant shift in the gambling landscape, as figures from January show the continued rise of internet gambling in the Garden State.
According to figures from the New Jersey Division of Gaming Enforcement, online casinos in New Jersey generated nearly $259 million in adjusted gross revenue last month. This represents an increase of almost 17% from the same period last year, underscoring the growing appeal of digital platforms. It's a milestone that not only marks three months of online casino dominance but also points to a longer-term shift in consumer behavior.
That's because the January iGaming numbers are among the highest in New Jersey's history, surpassed only by the records set in December and October 2025. This rise isn't an isolated incident but part of a broader trend. In 2025, online casino revenues reached a historic $2.91 billion, just edging out the $2.89 billion from physical casinos in Atlantic City for the first time ever. This shift underscores the digital era's impact on gambling.
January also saw Caesars' online casino award its biggest jackpot ever in New Jersey.
New Jersey and Pennsylvania Online Casinos on Top
The Division of Gaming Enforcement listed seven brands as "third-party" operators. These are companies that have an agreement with a casino or racetrack to operate in the market. Here they are:
- BetRivers Casino
- bet365 Casino
- DraftKings Casino
- Fanatics Casino
- FanDuel Casino
- Golden Nugget Casino
- theScore Casino
Bally's (Bally Bet), Borgata, Caesars, Hard Rock, Ocean, and Resorts are also in the market.
This has set up a battle at the top for supremacy among states with legal online casinos.
New Jersey and Pennsylvania are the top two U.S. iGaming markets (online slots, table games, and poker in NJ; primarily slots and table games in PA), with NJ holding a slight edge in total revenue but PA showing stronger growth momentum.
Key Comparison (2025 Full Year)
Metric | New Jersey | Pennsylvania | Notes |
|---|---|---|---|
Total iGaming Revenue | $2.91 billion | $2.78 billion | NJ leads by ~$130M; first time NJ topped PA annually (previously PA led). Both set records. |
YoY Growth | +21.8% (from $2.39B in 2024) | +27.2% (from $2.18B in 2024) | PA's faster growth driven by operator expansions and player acquisition. |
Share of Total Gaming | ~42% ($6.98B total gaming) | ~41% ($6.80B total gaming) | iGaming dominates both; NJ's online surpassed land-based casinos for first time in 2025. |
Top Operator | Golden Nugget Online (leader in slots/tables) | Hollywood Casino (Penn National): $1.06B (~38% market share) | PA more fragmented (16 casinos); NJ tied to 9 AC casinos + partners. |
Recent Monthly Performance
Month | NJ iGaming Revenue | PA iGaming Revenue | Notes |
|---|---|---|---|
Dec 2025 | $273.2M (record) | $259.7M (record) | NJ edges PA; both peaked amid holidays. |
Jan 2026 | $258.9M (+16.8% YoY; 3rd-highest ever) | Not yet released (PGCB pending as of Feb 18) | NJ continues strong start; PA Dec was $260M, suggesting close race. Prior estimates ~$210M unconfirmed. |
- NJ Strengths: Pioneer market, mature ecosystem, high mobile adoption. iGaming > AC land-based for 3 straight months (Jan milestone: $259M online vs. $213M physical). Projects $3B+ in 2026.
- PA Strengths: Larger population, aggressive growth (e.g., Valley Forge +36% YoY), new operators. iGaming now >40% of gaming revenue; poised to overtake NJ if growth sustains.
- Shared: Both taxed ~15-20% (state + local); tax revenue funds education/infrastructure. Competition from MI ($1.5B+ in 2025) looms, but NJ/PA lead East Coast.
Data from official DGE/PGCB reports; PA Jan report expected soon (typically mid-Feb).
Why Players Are Flocking to New Jersey Online Casinos
In addition to the harsh weather the Garden State experienced in January, several other factors contributed to the increasing popularity of online casinos in New Jersey, including:
- Convenience: Players can enjoy their favorite games from anywhere, whether at home or on the go, without the need for travel.
- Diverse Game Selection: Online platforms provide a wider range of games, from slots and table games to poker, catering to all preferences.
- Attractive Offers: Many online casinos offer enticing bonuses and promotions, drawing in both new and returning players.
- Evolving Consumer Preferences: As digital experiences become more ingrained in daily life, online casinos align perfectly with modern consumer habits.
On the other hand, the nine physical casinos in Atlantic City earned $213.3 million from in-person gamblers, marking a modest 1.6% year-over-year increase. While brick-and-mortar venues are still popular, it's clear that they are no longer the dominant force they once were.
The Broader Impact
The total gaming revenue for January, combining casinos, iGaming, and sports betting, reached $586.4 million, up 5.9% from the previous year. Within this landscape, online casinos were key drivers of growth, contributing around $57.4 million in tax revenue.
New Jersey's position as a leader in the online gambling market is evident, with its online platforms consistently outpacing traditional venues in revenue generation.
As the industry continues to evolve, the state remains at the forefront, offering a dynamic and engaging experience for all types of players. Whether you're a dedicated iGaming fan or exploring online casinos for the first time, New Jersey stands out as a top destination in the digital gambling world.
