In a summer marked by dynamic shifts, New Jersey’s gambling market demonstrated robust performance in June, experiencing a notable 7.4% growth. The state’s combined earnings from land-based casinos, igaming, and sports betting achieved an impressive $491.0 million, surpassing last June’s $457.2 million but falling short by 3.7% compared to May's $510.0 million.
Steady Gains in Land-Based Casinos
Revenue from New Jersey’s land-based casinos witnessed a modest yet significant increase of 1.0%, totaling $244.1 million. Slot machines played a critical role, generating $184.0 million, a 0.6% rise from last year. Meanwhile, table games outpaced slot machines in growth rate with a 2.5% increase, resulting in $60.1 million.
Surge in Igaming Industry
New Jersey's igaming sector showed substantial progress, recording a 25.2% year-on-year surge to reach $186.8 million. Despite trailing the land-based sector by $57.3 million, igaming has proven to be a formidable component of the state’s gambling industry. Notably, "other authorized games" within the igaming sector contributed a significant $184.4 million, marking an impressive 25.6% increase. However, peer-to-peer poker faced challenges, seeing a 2.9% decline to $2.5 million.
Top Performers in Igaming
When examining the top contributors in the igaming sector, Golden Nugget led the pack with $51.5 million, reflecting a 23.3% increase from the previous year. Resorts Digital followed closely, generating $48.6 million, which represented a substantial 36.4% year-on-year rise. The Borgata rounded out the top three with $42.9 million, marking an 8.8% increase from last year's figures.
Sports Betting: A Mixed Bag
The sports betting sector encountered some hurdles, with revenue dropping by 9.5% year-on-year to $60.1 million, and plummeting 23.7% from May's $78.8 million. Despite this, New Jersey residents placed $748.4 million worth of bets, a 26.6% increase from the prior year’s $591.1 million. Online bets dominated the scene, amounting to $719.0 million, while retail sportsbooks managed $29.5 million in bets.
Leaders in Sports Betting
FanDuel emerged as the top earner in sports betting, generating $29.1 million in revenue. DraftKings followed with $14.4 million, and BetMGM reported $3.7 million. Bet365 and Fanatics Sportsbook contributed $3.4 million and $1.8 million, respectively, rounding out the primary beneficiaries in the sports betting arena.
Significant Tax Contributions
The gambling industry’s substantial contributions to state taxes cannot be overlooked. In June, New Jersey’s gambling activities generated $47.8 million in taxes. 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 added a modest $7,782 in taxes, while racetracks contributed $71,191.
Year-to-Date Performance
Looking at the broader picture, the total market revenue for the first six months reached $3.06 billion, a notable 12.2% rise from last year's $2.73 billion. Land-based casinos contributed $1.36 billion to this total. Slot machines remained a significant revenue source, generating $998.3 million, while table games brought in $357.8 million.
Igaming continued its upward trajectory in the first half of the year, with revenues totaling $1.1 billion, up 21.4% from the previous year. "Other authorized games" within igaming were the main drivers, contributing $1.12 billion, an increase of 21.8%. In contrast, peer-to-peer poker saw a decline, contributing $14.1 million, down 4.2%.
The sports betting sector also showed positive year-to-date figures, with $573.1 million in revenue, up 30.0% year-on-year. The total handle surpassed $6.76 billion, with online sports betting contributing a staggering $6.53 billion, while retail locations accounted for $231.0 million.
New Jersey's gambling market showcases resilience and growth, particularly in the igaming and land-based casino sectors, even as the sports betting sector faces challenges. The state's adaptive market strategies and diverse gaming options suggest a robust future, underscored by significant tax contributions and sustained interest from residents.