New Jersey’s online gambling industry reached a new milestone in September, with Atlantic City’s casinos and their digital partners generating over $208 million in revenue.

According to data released Thursday by the state Division of Gaming Enforcement, this marks the first time monthly internet gambling earnings have surpassed $200 million, underscoring the growing importance of online gaming as traditional casino revenues decline.

However, not all of this revenue stays with the casinos; a portion goes to third-party technology providers and other partners. As a result, casinos still prioritize in-person gaming as their main business focus.

Performance on the casino floors remains uneven. While overall in-person revenue for the month exceeded that of September 2019 by $6 million, five of Atlantic City’s nine casinos reported lower in-person earnings than they did before the COVID-19 pandemic.

Thanks to the growth in internet gambling and a smaller lift from sports betting, the combined revenue for casinos, two racetracks with sportsbooks, and their partners reached $558 million in September—an increase of 7.1 percent compared to September 2023.

The steady rise in online gaming has driven Atlantic City’s total gaming revenue to its highest September level in over a decade. For the third straight month, total gaming revenue surpassed $500 million, a mark that was only achieved once last year, in August.

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which analyzes Atlantic City’s gaming industry, called the September results “a mixed bag,” with online earnings thriving while traditional gaming continues to lag.

So far in 2024, internet gaming has accounted for 40.8 percent of the industry’s total revenue through the first nine months, reflecting its growing significance within the overall business model.