New Jersey’s gambling market has demonstrated remarkable growth despite some fluctuations across different sectors. The latest figures for June highlight a mixed bag of results, with overall gains masking specific challenges within the sports betting arena.
June Growth Amidst Sectoral Fluctuations
The Garden State's gambling market reported a 7.4% increase in overall revenue for June, reaching $491.0 million. This marks a significant uptick from the $457.2 million recorded in June of the previous year. However, it represents a 3.7% decline from May’s impressive tally of $510.0 million. Despite this month-to-month dip, the annual growth rate underscores the resilience and upward trajectory of New Jersey’s gambling industry.
Detailed Breakdown of Revenue Streams
Land-based casinos showed a modest but steady increase, with revenue nudging up by 1.0% to $244.1 million. Slot machines were the major contributors, raking in $184.0 million, a 0.6% rise, while table games saw a healthy 2.5% boost to $60.1 million.
Igaming, on the other hand, continued its robust growth, surging by 25.2% year-over-year to $186.8 million. Despite still trailing behind land-based casino revenue by $57.3 million, igaming’s ascent is noteworthy. The sector’s "other authorized games" category experienced an impressive 25.6% climb to $184.4 million. Contrasting this, peer-to-peer poker faced a minor setback, declining by 2.9% to $2.5 million.
Standout Performers in Igaming
A deeper dive into the igaming revenue reveals significant performances from key players. Golden Nugget led the charge with $51.5 million, marking a 23.3% year-on-year increase. Resorts Digital also posted significant growth, generating $48.6 million, a 36.4% rise. Meanwhile, The Borgata recorded $42.9 million, reflecting an 8.8% increase from last year's figures.
Sports Betting: A Mixed Bag
Sports betting, traditionally a strong revenue stream, recorded a 9.5% year-on-year decrease to $60.1 million, with a sharper 23.7% drop from May’s $78.8 million. However, New Jersey residents placed bets worth $748.4 million in June, a commendable 26.6% increase from last year’s $591.1 million. Online bets dominated the landscape, accounting for $719.0 million, while retail sportsbooks handled $29.5 million in bets.
Key Players in Sports Betting
In terms of revenue generation, FanDuel led the pack with $29.1 million, followed by DraftKings with $14.4 million. BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively, while Fanatics Sportsbook added $1.8 million.
Tax Contributions and Mid-Year Performance
New Jersey’s gambling industry contributed a substantial $47.8 million in taxes in June. 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. Contributions from retail sports wagering were relatively minor, with casinos paying $7,782 and racetracks $71,191 in sports wagering taxes.
For the first six months of the year, the total market revenue reached an impressive $3.06 billion, up 12.2% from last year’s $2.73 billion. Land-based casinos contributed $1.36 billion to this figure, with slot machines generating $998.3 million and table games adding $357.8 million. Igaming also surged, with a 21.4% year-on-year rise to $1.1 billion, driven predominantly by $1.12 billion from other authorized games. Peer-to-peer poker, however, saw a 4.2% decline, contributing $14.1 million.
Sports betting displayed resilience, amassing $573.1 million in revenue for the first half of the year, up 30.0% year-on-year. The year-to-date handle soared past $6.76 billion, dominated by online sports betting at $6.53 billion, while retail locations contributed $231.0 million.
Conclusion
The gambling market in New Jersey continues to show resilience and growth, particularly in the igaming and land-based casino sectors, despite facing challenges in the sports betting segment. This dynamic landscape reflects a robust appetite for both physical and online gaming experiences among New Jersey residents, setting a positive tone for the industry's future trajectory.