Evolution's $75 Million Bet on Atlantic City: A Game-Changer for New Jersey's iGaming Scene

Key Takeaways

• Evolution plans to build a $75 million campus in Atlantic City to expand its live dealer operations for iGaming.
• The expansion could potentially double Evolution's workforce to 2,000 employees by 2029.
• New Jersey's online gaming revenue has seen a significant increase, with a 300% rise since 2019.

Evolution, a titan in the iGaming industry, has laid its cards on the table with a bold move that could significantly shuffle the deck for New Jersey's gambling sector. The Sweden-based company, renowned for its live dealer online casino table games, has filed plans with Atlantic City officials to construct a whopping $75 million campus. This strategic play isn't just about expanding its operational footprint; it's a testament to Evolution's commitment to cementing its position as the market leader in the United States' iGaming scene.

Currently, Evolution operates live studios within the premises of Hard Rock, Ocean Casino Resort, and Tropicana in Atlantic City. These setups are critical in facilitating table games for a rapidly growing cohort of remote internet bettors. However, the ambition doesn't end here. With plans for the new campus underway, Evolution is eyeing a significant upscaling of its operations. The move could see its Atlantic City workforce, currently standing at around 850 employees, more than double to approximately 2,000 by the year 2029.

The importance of this expansion cannot be overstated, especially when considering the regulatory landscape. New Jersey's online gaming law mandates that live dealer operations be conducted exclusively within Atlantic City limits. This regulation aims to mitigate the economic impact of online gambling on the city, ensuring that the digital evolution of gaming complements rather than cannibalizes the traditional casino experience.

This development comes at a time when New Jersey's online gaming revenue is riding high on an unprecedented wave of growth. The pandemic era saw a dramatic shift towards iGaming, with online Gross Gaming Revenue (GGR) since the inception of iGaming in 2013 surpassing the $7 billion mark. The lion's share of this revenue has been generated in recent years, highlighting a robust and enduring appetite for online casino gaming among New Jersey's bettors.

The financial implications are significant, with New Jersey reaping 15% of the gross iGaming revenue. Last year, this amounted to approximately $288.5 million, a windfall that underscores the burgeoning potential of the iGaming sector. Meanwhile, traditional casino revenues, including slot machines and table games inside Atlantic City's nine casinos, have seen a modest 6% growth from $2.68 billion to $2.84 billion.

What does this mean for the future of iGaming in New Jersey and, by extension, the broader United States? Evolution's ambitious $75 million investment in Atlantic City signals a new chapter in the narrative of online gambling. It's a bold statement of intent that speaks volumes about the potential for growth and innovation in the sector.

As we stand on the cusp of this exciting new development, one thing is clear: Evolution is not just playing the game; it's changing it. And for New Jersey's iGaming scene, this could well be the beginning of a thrilling new era.