New Jersey's gambling market continues to show robust performance, with notable growth in June and over the first half of the year. The combination of land-based casinos, igaming, and sports betting saw a notable resurgence, despite some challenges in the latter sector.
June’s Revenue Snapshot
In June, New Jersey's gambling market posted a 7.4% growth, with combined earnings from various gambling sectors reaching $491.0 million. This figure not only surpassed the $457.2 million recorded in June of last year but also highlights a slight decrease of 3.7% from May’s $510.0 million.
Breaking down the numbers, revenue from land-based casinos increased by 1.0%, reaching $244.1 million. A closer look reveals that slot machines generated $184.0 million, which was a 0.6% rise, while table games saw a 2.5% increase, hitting $60.1 million. These figures underline the steady growth and resilience of traditional casino operations amid the competitive gambling landscape.
Igaming Sector on the Rise
The igaming sector continued to thrive, with revenue surging by 25.2% year-on-year to $186.8 million. Despite this impressive growth, igaming revenue trailed behind the land-based sector by $57.3 million. Key contributors to this sector included "other authorized games," which brought in $184.4 million, marking a 25.6% increase. However, peer-to-peer poker experienced a decline, dipping by 2.9% to $2.5 million.
Leading the charge in the igaming domain, Golden Nugget generated $51.5 million in revenue, up 23.3% from the previous year. Resorts Digital followed closely with $48.6 million, marking a remarkable 36.4% year-on-year increase. The Borgata also performed well, contributing $42.9 million, an 8.8% increase compared to last year's figures. These statistics highlight a growing trend towards online gambling, fueled by user convenience and technological advancements.
Challenges in Sports Betting
Sports betting, a key component of New Jersey’s gambling ecosystem, faced challenges in June. Revenue declined by 9.5% year-on-year to $60.1 million and was down 23.7% from May's $78.8 million. Despite this drop, the betting activity remained high, with New Jersey residents placing bets worth $748.4 million—a 26.6% increase from last year’s $591.1 million. Online bets accounted for $719.0 million, while retail sportsbooks took in $29.5 million.
Among the operators, FanDuel led the pack with $29.1 million in sports betting revenue. DraftKings followed, generating $14.4 million, while BetMGM and Bet365 reported $3.7 million and $3.4 million, respectively. Fanatics Sportsbook made its mark with $1.8 million in revenue. These figures demonstrate the continued popularity and competitiveness within the sports betting sector, even amidst fluctuating revenue figures.
Taxes and Contributions
New Jersey’s gambling industry also made significant contributions to state taxes in June, totaling $47.8 million. This included $16.2 million from land-based casino gross revenue tax, $28.0 million from igaming internet gross revenue tax, and $3.6 million from internet sports wagering tax. Retail sports wagering from casinos contributed $7,782 in taxes, while racetracks paid $71,191 in sports wagering taxes.
Half-Year Insights
Looking at the first six months of the year, the total market revenue reached an impressive $3.06 billion, a 12.2% rise from last year’s $2.73 billion. Land-based casinos contributed $1.36 billion to this total, with slot machines generating $998.3 million and table games contributing $357.8 million.
Igaming revenue for the first six months amounted to $1.1 billion, marking a 21.4% increase from the previous year. "Other authorized games" significantly contributed, bringing in $1.12 billion—a 21.8% rise. However, peer-to-peer poker showed a decline, contributing $14.1 million, down 4.2%.
Sports betting revenue for the first half of the year was $573.1 million, reflecting a strong 30.0% year-on-year increase. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting contributing $6.53 billion and retail locations adding $231.0 million.
The gambling market in New Jersey exhibits remarkable resilience, driven by solid performances in the igaming and land-based casino sectors. While sports betting faces some hurdles, the overall outlook for New Jersey’s gambling industry remains positive, buoyed by consistent growth and expanding revenue streams.