In June, New Jersey’s gambling sector showcased remarkable resilience and growth amid contrasting trends across various segments. The market saw a substantial 7.4% increase, achieving combined revenue of $491.0 million. This figure, although slightly lower than May's earnings, still marked a significant year-on-year rise from June 2022's $457.2 million.
Land-Based Casinos’ Performance
Land-based casinos in New Jersey continued to thrive, registering a modest yet positive growth of 1.0%, culminating in $244.1 million in revenue. Slot machines contributed a robust $184.0 million, a slight uptick of 0.6%. Table games also enjoyed a healthy increase, generating $60.1 million, up by 2.5% from the previous year.
Igaming: A Beacon of Growth
New Jersey’s igaming sector emerged as a significant growth driver, with revenues soaring by 25.2% year-on-year to reach $186.8 million. Despite trailing the land-based sector's revenue by $57.3 million, igaming's impressive performance cannot be overlooked. "Other authorized games" in the igaming sector were pivotal, contributing $184.4 million, reflecting a 25.6% increase. However, peer-to-peer poker experienced a slight decline, with revenues dropping by 2.9% to $2.5 million.
Among key players, Golden Nugget led the igaming revenue charge with $51.5 million, marking a 23.3% increase. Resorts Digital followed closely, generating $48.6 million and registering a pronounced 36.4% year-on-year rise. The Borgata also posted a commendable performance, with igaming revenue of $42.9 million, up by 8.8% from the prior year.
Challenges in the Sports Betting Sector
Contrary to the positive trends seen in other segments, New Jersey's sports betting sector faced a downturn in June. Revenue from sports betting dropped by 9.5% year-on-year to $60.1 million and was significantly down 23.7% from May's robust $78.8 million. Despite the revenue slump, New Jersey residents showed increased interest in placing bets. The total bets placed escalated to $748.4 million, a 26.6% increase compared to last year's $591.1 million. Online betting dominated, with a whopping $719.0 million wagered, while retail sportsbooks accounted for $29.5 million in bets.
FanDuel emerged as a leader in sports betting, generating $29.1 million in revenue. DraftKings followed with $14.4 million, while BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively. Notably, Fanatics Sportsbook also made a mark with $1.8 million in sports betting revenue.
Significant Tax Contributions
The gambling industry's robust performance translated into substantial tax contributions. In June alone, New Jersey’s gambling sector paid $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. Additionally, retail sports wagering taxes from casinos contributed $7,782, while racetracks paid $71,191 in sports wagering taxes.
Year-to-Date Performance
Evaluating the first half of the year, New Jersey’s gambling industry demonstrated impressive growth. Total market revenue surged to $3.06 billion, a 12.2% rise from the previous year’s $2.73 billion. Land-based casinos played a significant role, contributing $1.36 billion. Slot machines continued to be a major revenue source, generating $998.3 million, while table games contributed $357.8 million for the first six months.
Igaming maintained its upward trajectory with $1.1 billion in revenue, reflecting a 21.4% increase year-on-year. "Other authorized games" contributed $1.12 billion, up 21.8%, while peer-to-peer poker revenue saw a slight decline to $14.1 million, down 4.2%. Despite the June setback, sports betting showed long-term growth, with half-year revenues climbing by 30.0% to $573.1 million. The year-to-date handle for sports betting hit an impressive $6.76 billion, with online sports betting accounting for $6.53 billion and retail locations contributing $231.0 million to the total handle.
Overall, New Jersey’s gambling market demonstrated resilience and adaptability, showcasing solid growth in igaming and land-based casino sectors despite facing challenges in sports betting. The state's ability to generate substantial tax revenue also underscores the sector's significant contribution to the local economy.