New Jersey's Gambling Market Shows Strong Growth in June

New Jersey's gambling market continued to showcase its dynamic nature with a notable performance in June, recording a robust 7.4% growth. The total combined earnings from land-based casinos, igaming, and sports betting reached an impressive $491.0 million. This figure not only eclipses the previous June's $457.2 million but also demonstrates a 3.7% dip from the $510.0 million observed in May.

Land-Based Casinos Show Stability

The brick-and-mortar segment of New Jersey's gambling sector retained its competitive edge, with revenue rising by 1.0% to $244.1 million. Slot machines played a significant role in this achievement, generating $184.0 million, a 0.6% increase. Additionally, table games exhibited a 2.5% boost in performance, amassing $60.1 million in revenue.

Igaming Continues to Surge

The igaming segment further solidified its position as a major contributor, with revenue soaring by 25.2% year-on-year to $186.8 million. Despite trailing land-based casino revenue by $57.3 million, the digital gaming landscape displayed significant growth. A major portion of this was driven by "other authorised games," which saw a 25.6% increase, contributing $184.4 million. However, peer-to-peer poker recorded a slight decline, with revenue dropping by 2.9% to $2.5 million.

Among the key players in the igaming industry, Golden Nugget stood out by generating $51.5 million in revenue, marking a 23.3% increase from the previous year. Resorts Digital showcased remarkable growth, with a 36.4% year-on-year rise, contributing $48.6 million. The Borgata, another significant entity, reported $42.9 million in revenue, up by 8.8% from last year's figures.

Challenges in Sports Betting

Sports betting experienced some challenges, with revenue declining by 9.5% year-on-year to $60.1 million, and a substantial 23.7% drop from May's $78.8 million. Despite these setbacks, the total handle of bets placed by New Jersey residents showed a promising trend, increasing by 26.6% to $748.4 million. Of this, a significant $719.0 million came through online bets, while retail sportsbooks managed $29.5 million in bets.

Among the prominent sports betting operators, FanDuel led the pack, generating $29.1 million in revenue. DraftKings followed, bringing in $14.4 million. BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively. Fanatics Sportsbook also made its presence felt with $1.8 million in revenue.

Significant Tax Contributions

New Jersey's gambling industry made a substantial contribution to the state's coffers, with $47.8 million in taxes for June. This included $16.2 million from the land-based casino gross revenue tax, $28.0 million from the igaming internet gross revenue tax, and $3.6 million from the internet sports wagering tax. Additionally, retail sports wagering from casinos contributed $7,782 in taxes, and racetracks paid $71,191.

First Half Performance

Looking at the broader picture for the first six months of the year, the total market revenue impressively hit $3.06 billion, reflecting a 12.2% increase from last year's $2.73 billion. Land-based casinos were a significant part of this growth, contributing $1.36 billion. Slot machines alone accounted for $998.3 million, while table games brought in $357.8 million.

On the igaming front, revenue climbed by 21.4% to $1.1 billion. "Other authorized games" again played a crucial role, contributing $1.12 billion, a 21.8% increase. Peer-to-peer poker, however, saw a decline, with revenue falling by 4.2% to $14.1 million.

Encouraging Sports Betting Trends

Despite the monthly fluctuations, sports betting over the first half of the year presented a positive outlook with revenue reaching $573.1 million, a substantial 30.0% year-on-year increase. The year-to-date handle for sports betting surpassed the $6.76 billion mark. A significant portion of this came from online sports betting, which contributed $6.53 billion, while retail locations added $231.0 million.

The gambling market in New Jersey continues to demonstrate resilience, with strong performances from the igaming and land-based casino sectors despite the hiccups in sports betting. This growth trajectory underscores the adaptability and robust nature of the state's gambling industry.