The Future of Online Gambling in New Jersey: What’s Next?
Are you noticing more and more people talk about hitting the jackpot on their phones? You’re not the only one – and you’re definitely not crazy. NJ online casinos are taking off, and if the latest numbers keep looking like this, that trend is turning into a tidal wave. Whether they’re in East Rutherford or Orange County, people are logging on, playing their favorite slots and cards, raking in casino bonuses.
In March 2025, the Garden State generated a whopping $546.1 million in total gambling revenue. With New Jersey online gambling in full swing, let’s dive into the amazing future of online gambling in New Jersey.
1. The iGaming Sector Continues to Outpace the Retail Sector
New Jersey’s Division of Gaming Enforcement registered $246.8 million in adjusted gross online casino revenue for May. It is the second time this year that operators in the Garden State set an all-time high for the vertical. Given the positive trend, this past June should follow suit.
March’s total of $243.9 million was the previous record. That is also part of a big windfall across all three regulated gaming verticals as combined gaming revenue in New Jersey for May totaled $614.7 million, an increase of 20.5% year-over-year. May’s total for online casino revenue is an increase of 28.5% compared to last year.
It is also the ninth consecutive month of more than $200 million in operator winnings from internet gambling. It is also the fourth time in 2025 that online casino revenue increased by at least 20% on a year-over-year basis. May’s gain is the largest such increase. Online casino revenue for the first five months of 2025 of $1.16 billion is an increase of 22.5% over last year.
2. New Jersey’s Sports Betting Keeps Rising
While much of the action has been within iGaming, New Jersey’s sports betting vertical also generated a total of $102.5 million in revenue last month. This figure is well ahead of May 2024’s tally of $78.8 million, with the sports betting market up by 30.2% year-over-year. Revenue numbers also highlight New Jersey’s preference for betting online, with $98 million of last month’s total coming through digital channels.
New Jersey sportsbooks turned in a disappointing performance in March 2025, but May’s numbers show that the industry has since bounced back. FanDuel topped the table, pulling in more than $44 million, considerably more than DraftKings. Fanatics and bet365 also pulled in strong sports betting performances in the Garden State. The online sports betting sector continues to outpace in-person sports betting. With 2025 halfway over, there’s no reason to discount this trend.
3. Steeper Gambling Taxes
The new budget that the New Jersey legislation passed will tax online gambling operations at a flat rate of 19.75 percent, up from the current 10.5 to 15 percent that is levied against sportsbooks, internet casinos, and daily fantasy sports sites. Gov. Phil Murphy had initially sought a 25 percent tax increase, which gambling industry stakeholders opposed, leading the Legislature to come up with a more moderate rate. The tax hike will bring New Jersey in line with states like Maryland and Louisiana, which have recently increased taxes on mobile betting.
In states like Illinois, where mobile betting taxes have also gone up, sportsbooks have resorted to charging fees to customers in order to mitigate the tax hikes. As The Empire State tries to pass legislation to legalize online casinos in New York, the sports betting tax is one of the highest at 51%.
4. The Crackdown on Sweepstakes Casinos
In addition to the tax changes, the lawmakers also gave their approval to Bill A5447, which aims at placing additional restrictions on sweepstakes casinos. The bill, which would consider such platforms as unlicensed gambling, calls for fines of up to $250,000 on any re-occurring offenses. The bill’s proponents have indicated that the legislation is necessary in order to protect consumers in light of the fact that there is no real oversight over the sweepstakes casinos. However, social casino advocates are pushing back against the measure.
Is the Online Casino Boom for Real?
What started as a regulatory pilot program to see if Internet poker could safely be offered to citizens of the Garden State has now expanded to all forms of Internet gambling. However, there is more to the future success of online gambling in New Jersey beyond mobile technology and accessibility. Personalization is one of the major factors that will separate the best casino app from the others.
There will always be an Atlantic City casino to join the crowd and one you can take in the palm of your hand. However, in 2025 and beyond, the gaming will be increasingly on the screen, and players are more than ready to start pushing the buttons in this mobile revolution that has already begun.
