New Jersey's gambling market witnessed a notable 7.4% growth in June, with combined earnings from land-based casinos, igaming, and sports betting reaching an impressive $491.0 million. This figure surpasses June 2022's total of $457.2 million but falls 3.7% short of May's $510.0 million. In a detailed analysis, we break down the driving forces behind these numbers.
Land-Based Casino Earnings
The revenue from land-based casinos saw a moderate increase of 1.0%, totaling $244.1 million. Slot machines, a staple in casino revenue streams, generated $184.0 million, reflecting a 0.6% rise. Meanwhile, table games enjoyed a more significant boost, garnering $60.1 million in revenue, up 2.5% from the previous year.
Igaming Sector
The igaming sector experienced a substantial surge, with year-on-year revenue climbing 25.2% to reach $186.8 million. Despite trailing the land-based sector by $57.3 million, the growth trajectory in igaming is remarkable. The category "other authorized games" was a major contributor, generating $184.4 million, marking a 25.6% increase. However, it wasn't all positive, as peer-to-peer poker saw a decline of 2.9%, bringing in $2.5 million.
Performance of Key Players
Several players stood out in the igaming market. The Golden Nugget led the pack with $51.5 million in revenue, up 23.3% from the previous year. Resorts Digital also showed a significant increase of 36.4%, generating $48.6 million. The Borgata followed with $42.9 million, representing an 8.8% increase over last year’s figures.
Sports Betting Dynamics
In contrast to the igaming and land-based casino sectors, sports betting revenue took a hit. It declined by 9.5% year-on-year to $60.1 million, also down 23.7% from May's $78.8 million. Despite this, the volume of bets placed by New Jersey residents was notably high at $748.4 million, a 26.6% increase from the previous year's $591.1 million. Online bets dominated, accounting for $719.0 million, while retail sportsbooks took in $29.5 million.
The competitive landscape among sportsbooks was led by FanDuel, which generated $29.1 million in revenue. DraftKings followed with $14.4 million, while BetMGM and Bet365 reported $3.7 million and $3.4 million respectively. Even relative newcomer Fanatics Sportsbook made its mark with $1.8 million in revenue.
Tax Contributions and Broader Market Trends
New Jersey's gambling industry contributed $47.8 million in taxes for June. Breaking this figure down further, $16.2 million came 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 added $7,782, while racetracks paid $71,191 in sports wagering taxes.
Examining the broader market trends, total revenue for the first half of the year reached $3.06 billion, which is a 12.2% rise from last year's $2.73 billion. Land-based casinos contributed $1.36 billion, with slot machines making up $998.3 million and table games adding $357.8 million. Igaming revenue for the first six months hit $1.1 billion, up 21.4% from the previous year, largely driven by "other authorized games" which contributed $1.12 billion, up 21.8%. Peer-to-peer poker, however, continued its decline with a 4.2% drop to $14.1 million.
Sports betting revenue for the first half of the year stood at $573.1 million, marking a 30.0% increase year-on-year. The year-to-date handle for sports betting surpassed $6.76 billion, with online sports betting contributing the lion's share at $6.53 billion and retail locations accounting for $231.0 million.
In conclusion, New Jersey’s gambling market demonstrates robust health with remarkable growth in the igaming and land-based casino sectors, despite facing challenges in the sports betting segment. The state's dynamic and resilient gambling ecosystem promises an interesting watch as it continues to evolve.