According to the New Jersey Division of Gaming Enforcement, internet gaming grew by 22.0% year-over-year in 2025, whereas casino win for physical properties increased by 2.7%. Of the total gaming revenue of $6.98 billion in New Jersey last year, 41.7% came from iGaming.
The overall gaming landscape in the country seems to be favoring internet gaming. As per reports from the American Gaming Association, New Jersey was one of only three states where internet gaming ended the year with higher revenue than commercial land-based gaming properties.
New Jersey Built iGaming Through Atlantic City
That change does not indicate that New Jersey has developed a unique market for online gaming separate from Atlantic City. The legal structure is grounded in the city’s casino system. Internet gaming is permitted by New Jersey state law, and bets must be accepted by a casino in Atlantic City.
So, even though the consumer may not be stepping foot on the Boardwalk, the expansion still runs through the local license framework.
Tax Math Gives Online Growth More Weight
According to New Jersey’s source reports, casino gross revenue is taxed at 8%. Internet gaming gross revenue was taxed at 15% until June 30, 2025, then increased to 19.75% from July 1.
Even before the increase in mid-year, online play was contributing a greater amount to the Casino Revenue Fund. In FY2024, internet gross revenue tax generated $318.6 million, whereas casino gross revenue tax contributed $176.78 million.
Atlantic City Still Runs on Visits
The stats from the year 2025 indicate that the gaming industry in New Jersey is becoming more dependent on digital revenue, especially from the perspective of taxation and growth. However, there is another gap seen from the reports: online gaming is helping the state’s overall results, while Atlantic City’s economy relies on in-person visits that occur around the casinos. That disparity will most likely stay relevant for casino gaming in the state, alongside the headline revenue figures.
