New Jersey's Gambling Market Sees Growth in June

In June, New Jersey's gambling market experienced notable growth, with a 7.4% increase as it posted a total revenue of $491.0 million. This figure represents a rise from the previous June's $457.2 million, though it falls short by 3.7% compared to May’s $510.0 million. The mixed performance across different sectors highlights the evolving dynamics within the state's gambling industry.

The land-based casino sector saw modest gains, with revenue rising by 1.0% to reach $244.1 million. Slot machines were a significant contributor, generating $184.0 million, a 0.6% increase. Table games also performed well, with a 2.5% growth to $60.1 million. These figures reflect steady engagement in traditional casino gaming, despite broader economic uncertainties.

Igaming: The Star Performer

The internet gaming (igaming) sector continues to be a bright spot for New Jersey's gambling market. Igaming revenue surged by 25.2% year-on-year, climbing to $186.8 million in June. This impressive growth is underscored by the performance of "other authorized games," which contributed $184.4 million, reflecting a 25.6% increase.

However, not all aspects of igaming thrived. Peer-to-peer poker saw a decline, with revenue dropping by 2.9% to $2.5 million. Among the top performers in the igaming sector, Golden Nugget generated $51.5 million, marking a 23.3% rise from the previous year. Resorts Digital wasn't far behind, bringing in $48.6 million—a substantial 36.4% increase year-on-year. The Borgata also showed a healthy gain, with igaming revenue up by 8.8% to $42.9 million.

Sports Betting: A Mixed Bag

Sports betting in New Jersey presented a more complex picture. Revenue from this sector fell by 9.5% year-on-year to $60.1 million, also representing a 23.7% decline from May's $78.8 million. This downturn suggests potential volatility and challenges within the sports wagering market. Nonetheless, New Jersey residents remained avid bettors, placing $748.4 million in bets—a 26.6% increase compared to last year. Of this amount, online bets dominated, totaling $719.0 million, while retail sportsbooks handled $29.5 million in bets.

Industry leaders in sports betting saw varied performances. FanDuel remained at the forefront, generating $29.1 million in revenue, followed by DraftKings with $14.4 million. BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively, while Fanatics Sportsbook added $1.8 million.

Significant Tax Contributions

New Jersey's gambling industry made a significant financial contribution in taxes, amounting to $47.8 million in June. This included $16.2 million from land-based casino gross revenue tax and $28.0 million from igaming internet gross revenue tax. Additionally, the internet sports wagering tax contributed $3.6 million. Though smaller in comparison, retail sports wagering from casinos and racetracks also added to the total, with $7,782 and $71,191, respectively.

Year-to-Date Performance

For the first half of the year, New Jersey's gambling market demonstrated strong resilience with a total revenue of $3.06 billion—an impressive 12.2% rise from last year's $2.73 billion. Land-based casinos were significant contributors, adding $1.36 billion to the total revenue. Slot machines were again a major driver, generating $998.3 million, while table games contributed $357.8 million.

Igaming remained a standout performer with revenue reaching $1.1 billion for the first six months, a 21.4% increase from the previous year. The majority came from other authorized games, which saw a 21.8% boost to $1.12 billion. However, peer-to-peer poker faced a decline, contributing $14.1 million, down by 4.2%.

Sports betting also showed substantial growth in the first half of the year, with revenue up by 30.0% to $573.1 million. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting contributing a significant $6.53 billion, and retail locations adding $231.0 million.

In summary, New Jersey's gambling market remains robust, with strong performances in both the igaming and land-based casino sectors. While the sports betting sector faced some challenges, the overall market displayed growth and resilience, underpinned by substantial tax contributions and year-to-date revenue increases.