New Jersey's Gambling Market Shows Resilience with 7.4% Growth in June

New Jersey's gambling market continues its impressive trajectory, showcasing resilience and adaptability in a rapidly evolving landscape. Despite minor setbacks, the Garden State's gambling sector posted a noteworthy 7.4% growth in June, illustrating its robust health and potential for further expansion.

In June alone, the combined earnings from land-based casinos, igaming, and sports betting reached a formidable $491.0 million. This figure not only eclipses last June's $457.2 million but also highlights a slight ebb from May's $510.0 million, marking a 3.7% decline. Nevertheless, the overall upward trend remains clear.

Land-Based Casinos: Steady Growth

Revenue from land-based casinos experienced a modest yet significant 1.0% increase, totaling $244.1 million. Within this sector, slot machines were the primary drivers, generating $184.0 million—an uptick of 0.6%. Table games also contributed positively, rising 2.5% to reach $60.1 million, showcasing a healthy balance within the traditional casino offerings.

Igaming: The Standout Performer

The igaming sector stood out with a remarkable 25.2% year-on-year surge, amassing $186.8 million in revenue. Despite trailing the land-based sector by $57.3 million, igaming's growth trajectory is remarkable. "Other authorized games" within igaming were significant contributors, bringing in $184.4 million, up 25.6%. Conversely, peer-to-peer poker saw a 2.9% decline, generating $2.5 million.

Key players in the igaming space maintained strong performances. Golden Nugget's igaming revenue rose 23.3% to $51.5 million, while Resorts Digital saw a 36.4% year-on-year increase, reaching $48.6 million. The Borgata also showed improvement, generating $42.9 million—a respectable 8.8% increase from the previous year.

Sports Betting: Mixed Fortunes

Sports betting presented a mixed bag, with a 9.5% year-on-year revenue decline to $60.1 million and a significant 23.7% drop from May's $78.8 million. Nonetheless, New Jersey residents' enthusiasm for sports betting remained undimmed, placing bets worth $748.4 million, a hefty 26.6% increase from last year's $591.1 million. Online bets dominated, accounting for $719.0 million, while retail sportsbooks contributed $29.5 million.

Among the bookmakers, FanDuel emerged as the leader with $29.1 million in sports betting revenue. DraftKings followed with $14.4 million, and BetMGM reported $3.7 million. Bet365 and Fanatics Sportsbook added $3.4 million and $1.8 million, respectively.

Significant Tax Contributions

New Jersey’s gambling industry also made substantial contributions to the state's coffers, with $47.8 million in taxes in June alone. This significant sum included $16.2 million from the land-based casino gross revenue tax, $28.0 million from the igaming internet gross revenue tax, and $3.6 million from internet sports wagering tax. Notably, retail sports wagering from casinos and racetracks contributed $7,782 and $71,191 in sports wagering taxes, respectively.

First Half of the Year: A Comprehensive Overview

Looking at the broader picture, New Jersey’s total market revenue for the first six months of the year reached an impressive $3.06 billion, marking a 12.2% rise from the previous year's $2.73 billion. Land-based casinos contributed $1.36 billion to the total, with slot machines generating $998.3 million and table games adding $357.8 million.

Igaming continued to bolster the market with $1.1 billion in revenue for the first half of the year, representing a 21.4% increase. "Other authorized games" were the mainstay here, contributing $1.12 billion, up 21.8%. Peer-to-peer poker, however, saw a 4.2% decline, providing $14.1 million.

Sports betting revenue for the first half of the year was equally impressive, standing at $573.1 million—a 30.0% year-on-year increase. The year-to-date handle for sports betting exceeded a staggering $6.76 billion, with online sports betting making up the lion's share at $6.53 billion, and retail locations contributing $231.0 million.

The gambling market in New Jersey shows that despite emerging challenges, notably in sports betting, the state remains a formidable player in the gambling industry. The sustained growth in igaming and the steady performance of land-based casinos underscore the sector's resilience and potential for continued expansion.