New Jersey’s gaming sector achieved its fifth consecutive record in annual revenue in 2025, primarily driven by significant growth in online casino gaming, which has now surpassed the revenue generated by the state’s physical casinos, as reported by state regulators.
The total gross gaming revenue (GGR) soared to $6.98 billion, marking a 10.8% increase from 2024, according to data from the New Jersey Division of Gaming Enforcement. Players lost over $6.9 billion across various gaming platforms, including casinos, online games, and sports betting throughout the year, solidifying New Jersey’s position as the second-largest gaming market in the United States, just behind Nevada.
Online casino gaming, commonly referred to as iGaming, continued to be the primary growth driver, generating $2.91 billion, which is a 22% increase compared to the previous year. Notably, iGaming revenue surpassed that of the nine physical casinos in Atlantic City for the first time.
December concluded the year with an unprecedented $273.2 million in online casino revenue, the highest monthly figure ever recorded in the state.
“A thriving gaming industry benefits all of New Jersey by fostering investments in Atlantic City’s conventions, tourism, and entertainment sectors, generating jobs and spurring new economic activity in South Jersey,” stated James Plousis, chair of the New Jersey Casino Control Commission.
In 2025, state gaming taxes surpassed $1 billion, with online casinos contributing nearly $581.9 million, supported by an increased iGaming tax rate of 19.75% effective from July 1.
Atlantic City’s physical casinos saw varied performance results. Overall, casino GGR increased by 2.7% to $2.89 billion, but only four out of the nine casinos experienced year-over-year growth in in-person gaming. The Borgata maintained its status as the market leader, reporting $800.8 million in revenue, up 8.5% from 2024. Hard Rock, Ocean, and Harrah’s were the only other establishments to showcase revenue growth.
Several traditional casinos faced challenges. Bally’s experienced the most significant drop, while Golden Nugget, Caesars, Tropicana, and Resorts all reported a decrease in in-person revenue for 2025.
Online platforms strengthened their market dominance. FanDuel led the way with $655.5 million in revenue for 2025, reflecting a 29.4% increase, followed by DraftKings and BetMGM, both demonstrating double-digit growth. However, some brands, including Bally Bet and PokerStars, reported declines in annual revenue despite overall market expansion.
Analysts caution that Atlantic City faces increasing pressure from rising operational costs and heightened regional competition. The planned development of three large-scale casinos in downstate New York, a critical feeder market for Atlantic City, could put additional strain on struggling properties, with Bally’s identified as particularly susceptible in the coming years.