New Jersey’s Gambling Landscape: A Surprising Surge Amid Sports Betting Challenges
In July, New Jersey’s gambling industry reported a remarkable revenue of $606.2 million, marking a 10.7% increase from the previous year, despite facing hurdles in the sports betting sector.
This figure not only reflects a year-on-year rise from $547.8 million in July 2022 but also outpaces June’s revenues by 4.2%, according to insights from the New Jersey Division of Gaming Enforcement. The growth in overall revenue is driven largely by the performance of online gambling and brick-and-mortar casinos, even as the sports betting segment experienced a downturn.
iGaming: The Bright Spot
A standout in this financial report is the impressive surge in iGaming, which soared by 26.6% to reach $247.3 million. The success of casino games, particularly slots, contributed significantly, climbing by 26.9% to $244.6 million, while internet poker saw a modest uptick of 3.2%, totaling $2.7 million.
Leading this charge, FanDuel and Golden Nugget topped the revenue charts with $52.1 million, showing a substantial growth of 37.8%. Close behind were DraftKings and Resorts World, which reported a revenue increase of 16.8%, hitting $48.6 million. BetMGM and Borgata followed, generating $31.4 million, a 24.3% boost, while Caesars Palace and Tropicana Atlantic City rounded out the top five with revenue climbing 53.3% to $18.7 million.
Sports Betting: A Different Story
In contrast, the sports betting sector faced challenges, experiencing a 6.6% decline to $74.8 million. Notably, online sports betting revenue slipped 3.2% to $75.4 million, alongside retail sportsbooks reporting a loss of approximately $680,018 compared to a profitable $2.1 million a year ago.
Despite a total betting expenditure of $664 million—an increase of 1.8%—the monthly hold stood at only 11.27%. Leading operators include FanDuel and Meadowlands, generating $26.9 million despite a 15.7% drop. Meanwhile, DraftKings and Resorts World pulled in $21.1 million, down 18.8%.
The retail sector similarly struggled, with racetrack revenues plummeting 63.5%, and overall retail sportsbooks reporting losses due to significant setbacks.
Brick-and-Mortar Casinos Bounce Back
On a brighter note, land-based casinos showcased resilience with a 4.3% increase in revenue, reaching $284.1 million. Slot machine revenues grew by 2.7%, totaling $212.9 million, while table games saw an impressive rise of 9.7%, amounting to $71.3 million.
The state’s tax income from this booming industry amounted to $81.7 million for July, broken down into $48.9 million from iGaming, $14.9 million from sports betting, a small sum from retail betting, and $17.9 million from land-based casinos.
Year-to-Date Performance
Cumulatively, New Jersey’s gambling revenue has surpassed $3.92 billion for the year, marking an 8.8% increase from July the previous year. iGaming revenue leads the pack with a 23.3% increase, bringing in $1.63 billion, whereas sports betting revenue has slightly decreased by 4% to total $626.8 million, and land-based casino revenue has grown by 2.2% to $1.66 billion.
In conclusion, July’s figures reflect a complex yet evolving gambling landscape in New Jersey, highlighting the resilience of online gaming while exposing vulnerabilities in the sports betting arena. This duality provides insight into shifting consumer preferences and market dynamics that are likely to shape the future of gambling in the Garden State.