New Jersey Gaming Slows Down as New York and Prediction Markets Speed Up

August is typically one of the Garden State’s busiest months as tourists flock to the shore. However, the New Jersey Casino Revenue report for August paints a sobering picture. Total gaming revenue fell 4% year-over-year (YOY) to $615 million. While still a substantial figure, the decline raises concerns as the state's tourist destinations prepare for a challenging shoulder season.

iGaming Growth Hits a Decade-Low

The most striking figure was also the month's primary positive: iGaming revenue reached $259 million, up 4.4% YOY.

While positive growth is welcome, this represents the lowest YOY growth rate recorded in over a decade of tracking New Jersey gaming revenue - a stark deceleration from the 17% YOY growth seen in June and 12% in July.

Performance across 24 online casinos in New Jersey was sharply divided:

• Top Gainers: BetFanatics continued its aggressive expansion, surging 30% in August (up 100% YTD 2026). Golden Nugget grew 28%, and Bally Bet rose 22%. BetMGM also outperformed the broader market with a 7.8% gain.

• Market Leaders: The market remains heavily top-heavy, with the top four operators driving over 60% of total revenue. Market leader FanDuel saw revenue contract by less than 1% (though remains up 16% YTD). DraftKings declined 7.5% YOY (flat YTD), while Borgata remained flat.

Online Sports Betting Suffers Sharp Contraction

The online sports betting sector faced a much steeper decline. Across the remaining 14 online sportsbooks in New Jersey, total online sports betting revenue fell 24.6% across the board.

• Bally Bet: The sole sportsbook to post growth, rising modestly from $250,000 to $298,000.

• FanDuel: Revenue dropped by more than $9 million to $22.5 million (a 28% decline).

• DraftKings: Revenue dropped by $11 million to $16.8 million (a nearly 40% decline).

Boardwalk Casinos Feel the Pressure

Atlantic City’s retail casinos saw total revenue drop 5.5% (~$16 million) to $295 million in August. Both table games and slot win experienced consistent declines across the market:

• Slots: Down 5% statewide, with drops recorded across all nine retail properties.

• Table Games: Down across most properties, though Borgata posted a strong month (+30%), driving its overall revenue up 6.4%—the only property in the city to log positive growth.

• Double-Digit Declines: Four properties saw revenue drop by double digits, led by Ocean (-13%), Harrah's (-12.7%), Golden Nugget (>10%), and Bally’s (>10%).

For full-year 2026, only three casinos have managed to grow revenue YTD, keeping overall industry growth at a modest 1.8%.

The New York Threat: Resorts World and the Outer-Borough Pipeline

While high gas prices and broader inflationary pressure on disposable income play a role, Atlantic City is increasingly feeling the impact of new regional competition.

In late April, Resorts World Queens launched 240 live table games in New York City - one of Atlantic City’s largest traditional feeder markets (accounting for 25% to 30% of Boardwalk visitors). Over the summer, Resorts World converted its Class II slots to Class III machines and added 1,400 new units, bringing its current count to 3,900.

With gas prices up nearly $1 per gallon from last summer and major casino infrastructure expanding directly inside New York City, Atlantic City faces a long-term fight to maintain its regional market share.

Prediction Markets Threaten Sportsbooks and iGaming Cross-Sell

Unlike retail casinos on the Boardwalk, online sportsbooks cannot point to physical New York casinos as the main source of their decline. As recently as July, online sportsbook revenue was up 25% and handle was up 24%. One month later, revenue dropped 25% and handle fell 9%.

The newest competitive threat comes from the best prediction markets like Kalshi, Polymarket, and trading platforms like Robinhood. During the opening week of the NFL season, Kalshi alone processed nearly $1 billion in NFL volume nationwide, with almost 50% tied to NFL-only combination contracts (similar to traditional parlay bets).

This shift impacts more than just sportsbook handle. Historically, US online sportsbooks serve as the primary acquisition funnel for US online casinos. When a user switches their sports wagering activity to a prediction platform, operators lose both the sports wager and the subsequent incremental iGaming play.

State iGaming Growth Comparison (August 2026)

• New Jersey (+4.4% YOY): Faced open competition from prediction markets.

• Pennsylvania (+6.25% YOY): Faced open competition from prediction markets.

• Michigan (+15.0% YOY): Issued a temporary restraining order in late June blocking Kalshi event contracts in the state.

While multiple economic variables influence these regional discrepancies, the correlation between active prediction markets and decelerating iGaming growth will be a critical metric to watch in the coming months.