New Jersey's gambling market has reported significant growth in June, showcasing resilience and expansion across various sectors. The market posted a notable 7.4% increase compared to the same month last year.
June Revenue Performance
Combined earnings from land-based casinos, igaming, and sports betting amounted to $491.0 million in June. This figure not only surpasses last June's $457.2 million but is only slightly below the $510.0 million recorded in May, marking a 3.7% decrease. Despite this minor decline, the overall trend remains positive.
Land-based casinos experienced a modest increase in revenue, rising by 1.0% to $244.1 million. Slot machines played a significant role, generating $184.0 million, a 0.6% increase, while table games saw a 2.5% growth, reaching $60.1 million. This steady performance underscores the consistent appeal of physical casinos in the state.
Igaming: A Surge in Popularity
Igaming has emerged as a driving force for the gambling market in New Jersey, with revenue surging by an impressive 25.2% year-on-year to $186.8 million. Although igaming revenue trailed behind the land-based sector by $57.3 million, its rapid growth is noteworthy. Within this sector, "other authorized games" contributed significantly, raking in $184.4 million, up 25.6% from the previous year.
However, not all aspects of igaming saw growth. Peer-to-peer poker revenue experienced a decline, dropping by 2.9% to $2.5 million. Despite this, leading entities within the igaming space showed robust performance. Golden Nugget generated $51.5 million, a 23.3% increase, while Resorts Digital reported $48.6 million, marking a significant 36.4% year-on-year rise. The Borgata also demonstrated strength, with $42.9 million in igaming revenue, representing an 8.8% increase from the previous year’s figures.
Challenges in Sports Betting
Sports betting has faced some challenges, with revenue declining by 9.5% year-on-year to $60.1 million. This figure is also down 23.7% from May’s $78.8 million. Nevertheless, sports betting remains a vital component of New Jersey’s gambling market. Residents placed bets worth $748.4 million, demonstrating a 26.6% increase from last year’s $591.1 million.
Online sports betting was particularly popular, accounting for $719.0 million of the total bets, while retail sportsbooks took in $29.5 million. Leading the charge in sports betting revenue, FanDuel generated $29.1 million, followed by DraftKings with $14.4 million. BetMGM and Bet365 also contributed $3.7 million and $3.4 million, respectively. Fanatics Sportsbook added $1.8 million to the mix, illustrating the competitive landscape of the sports betting sector.
Contributions to the State
New Jersey’s gambling industry made a substantial contribution to state coffers, delivering $47.8 million in taxes in June. This includes $16.2 million from the land-based casino gross revenue tax and $28.0 million from the igaming internet gross revenue tax. Additionally, internet sports wagering contributed $3.6 million in taxes. Retail sports wagering from casinos accounted for $7,782 in taxes, while racetracks paid $71,191 in sports wagering taxes. These revenues are crucial for state funding and development projects.
First Half-Year Performance
Looking at the first six months of the year, New Jersey’s gambling market has generated $3.06 billion in revenue, reflecting a 12.2% rise from last year’s $2.73 billion. Land-based casinos contributed significantly, adding $1.36 billion to the total revenue. Slot machines were the largest contributors, with $998.3 million in revenue, while table games brought in $357.8 million.
Igaming continued its upward trajectory with $1.1 billion in revenue for the first six months, up 21.4% from the previous year. Other authorized games within this sector contributed $1.12 billion, up 21.8%, whereas peer-to-peer poker saw a slight decline, contributing $14.1 million, down 4.2%.
Sports betting also recorded substantial gains, with revenue reaching $573.1 million, up 30.0% year-on-year. 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 consistent growth in igaming and the stable performance of land-based casinos highlight the resilience and adaptability of New Jersey’s gambling market. Despite facing challenges in the sports betting sector, the overall market trends point towards sustained growth and robust performance.