New Jersey’s Online Gambling Surge: A Warning for Canada’s Casino Market

In a troubling turn of events, New Jersey's online gambling market hit an all-time high in September 2024, with Atlantic City's casinos and their partners raking in over $208 million. While this record-breaking figure may seem like a victory for the industry, it raises serious concerns about the unchecked growth of online gambling and the lack of transparency in advertising, especially when it comes to informing players about critical factors like Return to Player (RTP) rates.

The shift towards online gambling:

Although online gambling is often touted as the saviour of casinos struggling to recover post-pandemic, this trend is fuelling addiction, especially when flashy, unregulated advertisements lure players in without adequately warning them of the risks. These ads fail to mention crucial details, like the fact that many online games come with low RTPs, meaning players are far more likely to lose than win. With such aggressive marketing, it's no surprise that online gambling has become a lifeline for casinos, even as in-person earnings remain stagnant or decline for many operators.

A deceptive picture of success:

The numbers from the New Jersey Division of Gaming Enforcement (NJDGE) paint an overly optimistic picture. The report highlights a total revenue of $558 million across casinos, online partners, and racetracks that accept sports bets, but these figures mask the underlying problems. The focus on maximising revenue through internet gambling glosses over the potential harm to consumers, many of whom may be unaware of the low odds of winning or the predatory nature of some games. Without clear RTP disclosures, players are often gambling blindly, leading to increased losses and, in many cases, gambling addiction.

James Plousis, chairman of the New Jersey Casino Control Commission, celebrated the state's online gambling success, but at what cost? The ongoing rise of internet gaming is benefiting casinos while putting the public at risk, especially as gambling ads flood the market with promises of easy money, without offering the full picture.

Winners and losers:

While some casinos, like Borgata, saw growth, others suffered significant declines. This uneven performance highlights the volatility of the industry and how online gaming is cannibalizing traditional casino operations. As Jane Bokunewicz from Stockton University noted, internet revenues now dominate the revenue mix, accounting for 40.8% of the total. Yet, behind these impressive numbers lies a dangerous dependency on online gambling, which relies heavily on advertising that targets vulnerable populations.

The rising revenues should prompt regulatory bodies to rethink their stance on gambling advertisements and enforce stricter rules. At the very least, ads should be required to disclose RTP rates and the real risks involved in online gambling. Without such measures, the industry's growth will continue to come at the expense of public well-being.