New Jersey's gambling market is showcasing a robust performance, with June's numbers reflecting a resilient industry marked by growth in various sectors. The state's overall gambling revenue surged by 7.4% year-on-year, reaching an impressive $491.0 million. This figure not only surpasses last June's $457.2 million but also highlights a slight dip from May's $510.0 million, indicating a complex but overall positive trend in the market.
Land-Based Casinos Show Steady Growth
On the ground, New Jersey's land-based casinos experienced a modest yet significant growth. The total revenue from these establishments edged up by 1.0% to $244.1 million. Breaking it down further, slot machines, a staple of any casino, generated $184.0 million, marking a 0.6% increase. Table games also showed a healthy uptick of 2.5%, generating $60.1 million. This data underscores the steady allure of traditional casino gaming.
Igaming: The Standout Performer
While land-based casinos exhibited steady growth, the igaming sector emerged as the star performer, with revenue soaring by 25.2% year-on-year to reach $186.8 million. Despite trailing the land-based sector by $57.3 million, the surge in igaming reflects a significant shift in consumer preferences. The "other authorized games" category within igaming contributed a substantial $184.4 million, up 25.6%, highlighting the sector's rapid expansion and diversification.
Peer-to-peer poker, however, did not fare as well, witnessing a 2.9% decline to $2.5 million. Yet, this minor setback was overshadowed by the impressive performances of leading igaming operators. Golden Nugget reported $51.5 million in igaming revenue, a 23.3% increase from the previous year. Resorts Digital saw a remarkable 36.4% jump to $48.6 million, while The Borgata charted a solid 8.8% rise, reaching $42.9 million.
Challenges in Sports Betting
Contrasting with the buoyant casinos and igaming sectors, sports betting faced hurdles. Revenue in this segment declined by 9.5% year-on-year to $60.1 million, also reflecting a significant drop of 23.7% from May's $78.8 million. Nonetheless, betting activity saw an uptick, with New Jersey residents placing bets worth $748.4 million, a 26.6% increase from last year's $591.1 million. Online bets dominated this segment, accumulating $719.0 million, while retail sportsbooks took in $29.5 million.
Among the major players, FanDuel led with $29.1 million in sports betting revenue, followed by DraftKings with $14.4 million. BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively. Fanatics Sportsbook, a newer entrant, provided $1.8 million.
Tax Contributions Reflect Market Health
The thriving gambling market translated into significant tax contributions. In June, New Jersey's gambling industry contributed $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. Notably, retail sports wagering from casinos contributed $7,782, and racetracks paid $71,191 in sports wagering taxes.
Year-to-Date Performance
Looking at the year-to-date performance, New Jersey's gambling market shows resilience. 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 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 six months was particularly strong, hitting $1.1 billion, up 21.4% from the previous year. "Other authorized games" continued to be a major revenue driver, contributing $1.12 billion, up 21.8%. Peer-to-peer poker, however, saw a decline of 4.2%, bringing in $14.1 million.
Sports Betting: A Mixed Bag
Despite recent monthly declines, sports betting for the first half of the year posted $573.1 million in revenue, up 30.0% year-on-year. The cumulative handle for sports betting surpassed $6.76 billion, with online sports betting contributing $6.53 billion and retail locations adding $231.0 million.
The gambling market in New Jersey is demonstrating a dynamic blend of growth and challenges. The expanding igaming sector and steady performance of land-based casinos are offsetting the hurdles faced by sports betting. As the year progresses, stakeholders will be closely monitoring these trends, drawing insights to navigate the evolving landscape of New Jersey's gambling industry.