New Jersey's Gambling Market Demonstrates Strong Growth in June
New Jersey's gambling market has shown impressive resilience and growth in June, marking a remarkable 7.4% increase compared to the same period last year. The combined earnings from land-based casinos, igaming, and sports betting reached an astounding $491.0 million, surpassing June 2022's figure of $457.2 million. However, the total revenue fell short by 3.7% compared to May's $510.0 million.
Land-Based Casino Performance
Land-based casinos in New Jersey experienced modest growth, posting a 1.0% increase in revenue to $244.1 million. Within this sector, slot machines generated $184.0 million, marking a slight rise of 0.6%, while table games saw a more substantial increase of 2.5%, reaching $60.1 million.
Surge in Igaming Revenue
In contrast to the steady performance of traditional casinos, igaming revenue surged dramatically, reporting a 25.2% year-on-year increase to $186.8 million. Despite this significant growth, igaming revenue trailed behind the land-based sector by $57.3 million. Within the igaming domain, "other authorized games" contributed significantly, generating $184.4 million, up 25.6%. Interestingly, peer-to-peer poker did not share this upward trend, instead experiencing a 2.9% decline to $2.5 million.
Among individual operators, Golden Nugget led the charge with $51.5 million in igaming revenue, up by 23.3% from the previous year. Resorts Digital followed with $48.6 million, marking an impressive 36.4% year-on-year increase. The Borgata also recorded significant growth, with $42.9 million in igaming revenue, an 8.8% rise from last year.
Challenges in Sports Betting
While igaming flourished, sports betting faced a decline. Sports betting revenue dropped by 9.5% year-on-year to $60.1 million, a substantial decrease from May's $78.8 million, representing a 23.7% fall. Despite this slump in revenue, the betting volume remained strong, with New Jersey residents placing bets worth $748.4 million, a substantial 26.6% increase from last year’s $591.1 million. Online bets accounted for a significant portion of this, totaling $719.0 million, while retail sportsbooks handled $29.5 million in bets.
Within the sports betting sector, FanDuel emerged as the top performer, 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.
Tax Contributions and Market Trends
New Jersey's gambling industry made substantial tax contributions in June, amounting to $47.8 million. This figure 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 contributed a modest $7,782 in taxes, while racetracks paid $71,191 in sports wagering taxes.
Looking at the overall market performance for the first half of the year, New Jersey's gambling industry has shown a robust growth trajectory. The total market revenue for the first six months reached $3.06 billion, a 12.2% rise from last year’s $2.73 billion. Land-based casinos played a significant role in this growth, contributing $1.36 billion to the total revenue. Within this segment, slot machines and table games generated $998.3 million and $357.8 million, respectively, for the first six months.
Igaming also demonstrated strong growth, with revenue reaching $1.1 billion for the first half of the year, up 21.4% from the previous year. Notably, "other authorized games" dominated this sector, contributing $1.12 billion, an impressive 21.8% increase. However, peer-to-peer poker continued to struggle, contributing only $14.1 million, a 4.2% decline.
In the sports betting arena, the sector accumulated $573.1 million in revenue for the first half of the year, up 30.0% year-on-year. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting making a significant contribution of $6.53 billion, while retail locations added $231.0 million to the handle.
Overall, the gambling market in New Jersey exhibits remarkable resilience, with significant growth in the igaming and land-based casino sectors. Despite the challenges faced by the sports betting sector, the state's gambling industry continues to thrive, underscoring its importance to the local economy.