New Jersey's Gambling Market Posts Robust Growth in June
In an impressive display of resilience and growth, New Jersey’s gambling market experienced a 7.4% increase in June, underscoring a thriving sector that continues to adapt and flourish. The combined revenues from land-based casinos, igaming, and sports betting reached an impressive $491.0 million for the month. This haul not only surpasses the previous June’s $457.2 million but also indicates the strength of the market despite being 3.7% behind May's $510.0 million.
Strong Performance in Land-Based Casinos
Land-based casinos in New Jersey demonstrated growth, albeit modestly, with a 1.0% increase, bringing in $244.1 million in June. A closer look at the numbers reveals that slot machines generated $184.0 million, marking a 0.6% rise, while table games contributed $60.1 million, up 2.5% from the previous year.
Igaming Surges with Remarkable Year-On-Year Growth
The igaming sector saw a substantial surge, with revenues climbing by 25.2% year-on-year to $186.8 million. Despite trailing the land-based sector by $57.3 million, the growth in igaming underscores a significant shift in gambling habits among New Jerseyans. Notably, "other authorized games" within the igaming sector accounted for $184.4 million of the revenue, reflecting a 25.6% increase. However, not all segments experienced growth, as peer-to-peer poker revenues declined by 2.9% to $2.5 million.
Leading the charge in the igaming sector, Golden Nugget generated $51.5 million, up 23.3% from the previous year. Resorts Digital followed closely with a 36.4% year-on-year increase, bringing in $48.6 million. The Borgata also performed well, reporting $42.9 million in igaming revenue, an 8.8% increase from last year’s figures.
Sports Betting Faces a Decline Yet Sees Increased Participation
Sports betting revenue saw a decline, dropping 9.5% year-on-year to $60.1 million and falling 23.7% from May's $78.8 million. However, this sector also exhibited positive indicators, as New Jersey residents placed bets worth $748.4 million in June, representing a substantial 26.6% increase from last year’s $591.1 million. Online bets played a significant role, totaling $719.0 million, while retail sportsbooks took in $29.5 million.
Among the top performers in sports betting, FanDuel led with $29.1 million in revenue. DraftKings followed with $14.4 million, while BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively. New entrant Fanatics Sportsbook generated $1.8 million.
Significant Tax Contributions from the Gambling Sector
The tax contributions from New Jersey’s gambling industry in June were notable, amounting to $47.8 million. This sum included $16.2 million from the land-based casino gross revenue tax, $28.0 million from the igaming internet gross revenue tax, and $3.6 million from the internet sports wagering tax. Retail sports wagering from casinos and racetracks also contributed, albeit more modestly, with $7,782 and $71,191, respectively.
First Six Months Showcase Impressive Growth
Analyzing the first six months of the year, the total market revenue reached $3.06 billion, a 12.2% rise from last year’s $2.73 billion. Land-based casinos contributed significantly with $1.36 billion, driven by $998.3 million from slot machines and $357.8 million from table games. Igaming revenue also exhibited robust growth, reporting $1.1 billion, up 21.4% from the previous year. “Other authorized games” contributed $1.12 billion to igaming revenue, a 21.8% increase, while peer-to-peer poker saw a slight decline, contributing $14.1 million, down 4.2%.
Sports betting revenue for the first half of the year was strong at $573.1 million, marking a 30.0% year-on-year increase. The year-to-date handle for sports betting surpassed $6.76 billion, propelled primarily by online sports betting, which alone contributed $6.53 billion. Retail locations accounted for $231.0 million of the year-to-date handle.
Despite the challenges faced in the sports betting sector, New Jersey’s gambling market exhibits resilience and dynamic growth. The significant gains in the igaming and land-based casino sectors signal a buoyant and adaptable industry, while the increased participation in sports betting points to a robust underlying demand.