New Jersey's gambling market experienced a notable upswing in June, posting a 7.4% year-on-year growth, culminating in a combined earnings figure of $491.0 million. This increment, when compared to June 2022's $457.2 million, underscores the robust expansion of the state’s gaming sector, despite a minor 3.7% dip from the previous month's $510.0 million.
Land-Based Casinos and iGaming on the Rise
The traditional land-based casino sector witnessed a modest 1.0% growth, reaching $244.1 million in revenue for June. Slot machines, a staple of the casino floor, contributed a significant $184.0 million, marking a 0.6% increase. Table games also showed resilience, surging by 2.5% to generate $60.1 million.
On the digital front, iGaming revenue skyrocketed by an impressive 25.2%, recording $186.8 million. Although this figure still trailed the land-based sector by $57.3 million, the growth trajectory suggests a rapidly evolving marketplace. "Other authorized games" within the iGaming category led the charge, contributing $184.4 million, a 25.6% rise. However, peer-to-peer poker didn't share the same fortune, seeing a 2.9% decline to $2.5 million.
Key Players in the iGaming Sector
Among the prominent players in the iGaming sector, Golden Nugget stood out with an annual revenue increase of 23.3%, hitting $51.5 million. Resorts Digital wasn't far behind, registering a substantial 36.4% year-on-year growth with $48.6 million. The Borgata also contributed significantly, reporting $42.9 million, marking an 8.8% rise from the previous year.
Sports Betting: Mixed Results
While the general market showed positive trends, the sports betting sector faced some challenges. Revenue from sports betting fell by 9.5% year-on-year to $60.1 million and saw a significant 23.7% decline from May's $78.8 million. Despite these setbacks, New Jersey residents were active bettors, placing wagers worth $748.4 million, a notable 26.6% increase from last June. The bulk of these bets, amounting to $719.0 million, came from online platforms, with retail sportsbooks contributing $29.5 million.
The major players in the sports betting industry also saw diverse performance results. FanDuel led the pack with $29.1 million in revenue, followed by DraftKings at $14.4 million. BetMGM and Bet365 posted revenues of $3.7 million and $3.4 million, respectively, while the relatively new entrant, Fanatics Sportsbook, contributed $1.8 million.
Tax Contributions and Market Growth
The gambling industry's contribution to state taxes was substantial, totaling $47.8 million in June. 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. Retail sports wagering from casinos and racetracks added $7,782 and $71,191, respectively.
For the first half of the year, New Jersey's gambling market continued its upward trajectory, with total market revenue reaching $3.06 billion, reflecting a 12.2% increase from the previous year's $2.73 billion. Land-based casinos remained a cornerstone, contributing $1.36 billion to the total revenue. Slot machines accounted for $998.3 million, while table games brought in $357.8 million.
The iGaming sector continued to grow, with revenue for the first six months hitting $1.1 billion, up 21.4% from the previous year. "Other authorized games" continued to dominate, contributing $1.12 billion, marking a 21.8% rise. Only peer-to-peer poker saw a decline, down 4.2% to $14.1 million.
The sports betting segment showcased a robust year-on-year growth of 30.0%, with revenue hitting $573.1 million for the first six months. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting making up $6.53 billion and retail locations contributing $231.0 million.
Overall Market Resilience
In conclusion, New Jersey’s gambling market demonstrates a resilient and dynamic landscape. The impressive growth in both iGaming and land-based casino sectors more than compensates for the hurdles faced by the sports betting sector, highlighting the state's ability to adapt and thrive in a competitive environment.