New Jersey's gambling market demonstrated notable resilience and growth in June, cementing its status as a significant player in the industry. The market posted a 7.4% growth, with combined earnings from land-based casinos, igaming, and sports betting reaching a substantial $491.0 million. This figure not only surpassed last June's $457.2 million but also highlights the state’s dynamic gambling landscape, despite being 3.7% behind May’s $510.0 million.
Land-Based Casinos Show Gradual Growth
The land-based casino sector in New Jersey maintained a steady increase, contributing $244.1 million in revenue, reflecting a 1.0% rise. Slot machines, a staple for casinos, generated $184.0 million, marking a modest 0.6% increase. Table games also performed well, with a 2.5% hike leading to $60.1 million in revenue. These figures underscore the enduring appeal of traditional gambling formats even as other sectors rapidly expand.
Igaming Sector Surges
In a more dramatic uptick, igaming revenue surged by a staggering 25.2% year-on-year, hitting $186.8 million in June. Despite trailing behind the land-based sector by $57.3 million, igaming's robust growth trajectory is evident. Within this sector, "other authorised games" played a significant role, contributing $184.4 million, up by 25.6%. Peer-to-peer poker, however, did not fare as well, experiencing a 2.9% decline to $2.5 million.
Several key players in the igaming market reported significant increases. The Golden Nugget generated $51.5 million, up 23.3% from the previous year. Resorts Digital marked an impressive 36.4% year-on-year increase with $48.6 million, while The Borgata contributed $42.9 million, an 8.8% rise from the previous year’s figures. These numbers reflect both the competitive nature and the growth potential within the igaming industry in New Jersey.
Sports Betting Faces Challenges
Sports betting in New Jersey saw a year-on-year revenue decline of 9.5%, bringing in $60.1 million, and also fell 23.7% from May's $78.8 million. Despite this dip in revenue, the volume of bets placed by New Jersey residents painted a more promising picture. Bets amounted to $748.4 million, a significant 26.6% increase from the previous year’s $591.1 million. Online bets dominated this sector, totaling $719.0 million, while retail sportsbooks took in $29.5 million in bets.
Key contributors to sports betting revenue included FanDuel with $29.1 million, DraftKings with $14.4 million, BetMGM reporting $3.7 million, Bet365 contributing $3.4 million, and Fanatics Sportsbook providing $1.8 million. These figures highlight the substantial competition among major players in the sports betting market.
Tax Contributions and Market Outlook
The gambling industry in New Jersey made significant contributions to state taxes, totaling $47.8 million in June. Land-based casino gross revenue tax accounted for $16.2 million, while igaming internet gross revenue tax amounted to $28.0 million. Additionally, $3.6 million came from internet sports wagering tax, with retail sports wagering from casinos contributing $7,782 and racetracks paying $71,191 in sports wagering taxes.
Year-to-Date Performance and Overall Resilience
For the first six months of the year, New Jersey’s gambling market revenue reached an impressive $3.06 billion, a 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 $357.8 million. Igaming revenue for the first half of the year stood at $1.1 billion, up 21.4% from the previous year. A considerable portion of this came from other authorized games, contributing $1.12 billion, despite peer-to-peer poker’s slight decline of 4.2%, contributing $14.1 million.
Interestingly, sports betting remained a dynamic segment with $573.1 million in revenue for the first half of the year, marking a 30.0% increase year-on-year. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting accounting for $6.53 billion, and retail locations contributing $231.0 million.
Overall, the gambling market in New Jersey continues to show remarkable resilience and growth, particularly in the igaming and land-based casino sectors, despite the challenges in the sports betting segment. This dynamic market's expansion highlights its robust nature and adaptability in a fluctuating economic landscape.