New Jersey's gambling market continues to make significant strides, despite encountering some fluctuations across various sectors. The state witnessed a 7.4% growth in the gambling industry for June, revealing a dynamic landscape in both land-based casinos and the ever-evolving igaming sector.
June Performance Overview
The combined earnings from land-based casinos, igaming, and sports betting reached an impressive $491.0 million in June. This number not only exceeded last June's $457.2 million but is also a testament to the resilience of the market even though it fell short by 3.7% compared to May’s $510.0 million.
Land-based casino revenue, a cornerstone of New Jersey's gambling industry, showed a modest 1.0% increase, totaling $244.1 million. Slot machines played a significant part in this, generating $184.0 million, up 0.6%. Table games also contributed significantly, with a 2.5% increase, reaching $60.1 million.
Surge in Igaming
Igaming has cemented its role as a powerhouse within the gambling landscape, surging 25.2% year-on-year to $186.8 million. Despite still trailing behind the land-based sector by $57.3 million, igaming continues to close the gap. Within the igaming sector, "Other authorized games" saw a significant uptick of 25.6%, contributing $184.4 million.
However, not all aspects of igaming were as fortunate. Peer-to-peer poker saw a slight decline of 2.9%, bringing in just $2.5 million. This niche area is clearly facing challenges in keeping up with other types of online gambling.
Top Performers
Among the leading igaming entities, Golden Nugget stood out, generating $51.5 million, reflecting a notable 23.3% year-on-year increase. Resorts Digital followed closely with $48.6 million, marking a significant 36.4% growth. The Borgata also reported positive figures, with an 8.8% increase to $42.9 million, showcasing consistent performance.
Sports Betting Woes
While igaming and land-based casinos painted a promising picture, sports betting faced a downturn. Revenue from sports betting fell by 9.5% year-on-year to $60.1 million and experienced a sharper month-on-month decline of 23.7% from May’s $78.8 million. Despite these challenges, New Jersey residents' enthusiasm for sports betting didn't wane, with bets totaling $748.4 million, a substantial 26.6% increase from the previous year.
Online sports betting remains the dominant mode, with $719.0 million in bets placed digitally. Meanwhile, retail sportsbooks accounted for $29.5 million in bets. Notably, FanDuel led the pack in sports betting revenue, generating $29.1 million, followed by DraftKings with $14.4 million. BetMGM and Bet365 also made significant contributions, reporting $3.7 million and $3.4 million, respectively. Fanatics Sportsbook, a newer entrant, contributed $1.8 million.
Tax Contributions and Year-to-Date Performance
New Jersey's gambling industry also made substantial contributions to the state's coffers, with total taxes from various gambling activities amounting to $47.8 million in June. This included $16.2 million from land-based casino gross revenue tax and $28.0 million from the igaming internet gross revenue tax. The internet sports wagering tax added $3.6 million, while retail sports wagering from casinos and racetracks paid $7,782 and $71,191 respectively.
In terms of year-to-date performance, New Jersey's gambling market has showcased robust growth. Total market revenue for the first six months of the year reached $3.06 billion, a healthy 12.2% increase 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 adding $357.8 million.
Igaming revenue for the first half of the year hit $1.1 billion, up 21.4% from the previous year. Within this, "Other authorized games" saw a 21.8% rise, contributing $1.12 billion, though peer-to-peer poker noted a minor decline of 4.2%, totaling $14.1 million.
Sports betting continued to be a dynamic component, with a revenue of $573.1 million for the first half of the year, marking a 30.0% year-on-year increase. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting comprising $6.53 billion of this total, leaving retail locations to account for $231.0 million.
Overall, the gambling market in New Jersey displays remarkable resilience and adaptability, with significant growth seen in igaming and land-based casino sectors. Despite encountering some hurdles in sports betting, the industry's upward trajectory underscores its robust and evolving nature.