New Jersey's Gambling Market Demonstrates Robust Growth in June

In June, New Jersey's gambling market demonstrated robust growth, a clear indicator of the sector's resilience amid shifting consumer preferences. The month closed with combined earnings from land-based casinos, igaming, and sports betting reaching a substantial $491.0 million, a 7.4% increase compared to last June's $457.2 million. However, this figure was slightly below May's $510.0 million by 3.7%, showcasing the sector's natural fluctuations.

Land-Based Casinos: Steady Climb

Revenue from land-based casinos saw a modest rise of 1.0%, totaling $244.1 million. Within this category, slot machines generated $184.0 million, which reflected a 0.6% increase, while table games experienced a 2.5% uptick, reaching $60.1 million. These steady climbs underscore the land-based sector's enduring appeal among gambling enthusiasts.

Igaming: A Surge in Popularity

The igaming sector, meanwhile, has been on a significant upward trajectory. Revenue from online gaming surged by 25.2% year-on-year, totaling an impressive $186.8 million. Despite this surge, igaming revenue trailed the land-based sector by $57.3 million. A closer look reveals that "other authorized games" within the igaming sector notably contributed $184.4 million, up 25.6%, while peer-to-peer poker saw a decline of 2.9%, recording $2.5 million.

Key players in the igaming space also reported robust growth. Golden Nugget led the pack with $51.5 million in revenue, marking a 23.3% increase from the previous year. Resorts Digital followed closely with $48.6 million, reflecting a massive 36.4% year-on-year surge. The Borgata also showed an impressive performance with $42.9 million, up 8.8% from last year’s figures.

Sports Betting: A Mixed Bag

Sports betting presented a more complex picture. Revenue in this segment declined by 9.5% year-on-year to $60.1 million and was down by 23.7% from May's $78.8 million. However, the total amount bet by New Jersey residents in June reached $748.4 million, showing a 26.6% increase from last year’s $591.1 million. This betting activity was predominantly online, with $719.0 million wagered through digital platforms, while retail sportsbooks took in $29.5 million.

Among the sports betting operators, FanDuel led with $29.1 million in revenue, followed by DraftKings at $14.4 million. BetMGM and Bet365 reported revenues of $3.7 million and $3.4 million, respectively. Fanatics Sportsbook also made its mark with $1.8 million in revenue.

Tax Contributions and Market Resilience

The overall tax contribution from New Jersey’s gambling industry amounted to $47.8 million in June. This included $16.2 million from land-based casino gross revenue, $28.0 million from igaming, $3.6 million from internet sports wagering, and smaller amounts from retail sportsbook activities. Notably, racetracks also contributed $71,191 in sports wagering taxes.

Looking at the broader picture, the total market revenue for the first half of the year reached an impressive $3.06 billion, representing a 12.2% rise from last year's $2.73 billion. Breaking this down, land-based casinos contributed $1.36 billion, with slot machines and table games bringing in $998.3 million and $357.8 million, respectively. Igaming maintained its growth trajectory with $1.1 billion in revenue, a 21.4% increase from the previous year. Within this, "other authorized games" contributed heavily, amounting to $1.12 billion, while peer-to-peer poker continued its slight decline with $14.1 million, down 4.2%.

Moreover, sports betting revenue showcased significant growth over the year, with a 30.0% year-on-year increase, totaling $573.1 million. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting contributing $6.53 billion and retail locations adding $231.0 million.

These figures underline New Jersey's gambling market's resilience, particularly in the face of varying sector performances. The steady growth in igaming and land-based casino sectors highlights a dynamic market adapting to shifting consumer behaviors and technological advancements. As the market continues to evolve, stakeholders and analysts will undoubtedly watch closely to understand these trends' long-term impacts.