New Jersey Sees Record Igaming Revenue Amid Declines in Traditional Betting Sectors
In an impressive turn of events for New Jersey’s gambling landscape, igaming revenues soared to an all-time high of $243.9 million (£184.2 million/€214.5 million) in March. This uptick, however, comes alongside a notable drop in both sports betting and land-based casino revenues across the state.
According to data released on April 16 by the New Jersey Division of Gaming Enforcement (NJDGE), the state’s total gambling revenue reached $546.1 million for the month. This marks a 3.7% increase compared to March of the previous year and a remarkable 12.6% growth over February’s figures.
Despite the traditional dominance of land-based casinos in New Jersey’s gambling earnings, igaming has captured the spotlight in recent months, reflecting a significant shift in player preferences. For the third consecutive month, igaming has led the charge in revenue generation.
A Surge in Igaming Growth
March’s igaming revenue was up 23.7% compared to the same period last year. It’s noteworthy that this is only the fourth instance where igaming has outperformed other gambling avenues within a single month in New Jersey.
Breaking down the performance, a striking $241.3 million of this igaming revenue stemmed from "other authorized games," primarily online slots, showing an impressive annual increase of 23.9%. Online poker contributed a smaller segment, generating $2.6 million, an uptick of 8.9%.
Industry titans FanDuel and Golden Nugget Atlantic City dominated the igaming market, collectively earning $52.3 million, which reflects an increase of 25.7%. Close behind, DraftKings and Resorts Casino Hotel reported revenues of $49.6 million, representing a 20.3% year-on-year growth. BetMGM and Borgata followed with $31.6 million, while Borgata’s individual platform accounted for $22.4 million. Caesars and Tropicana Atlantic City rounded out the top five with $15.7 million.
Declining Sports Betting Handle
In stark contrast, the sports betting sector in New Jersey continued its downward trend, witnessing a 20.5% year-on-year revenue decrease to $71.3 million, which also fell short of February’s $73.6 million.
Online betting was the predominant contributor in this segment, bringing in $68 million, down by 20.6% from last year. Retail sportsbooks contributed a mere $3.3 million, reflecting a decline of 17.3%.
Total player spending across both online and retail sports betting platforms was reported at $1.11 billion for the month, marking a significant 23.5% decline from the previous year. Specifically, online wagering hit $1.06 billion, whilst retail sportsbooks managed $44.4 million in bets, translating to a monthly hold of 6.44%.
FanDuel and Meadowlands maintained their lead in the online market with $23.4 million in betting revenue, though this represented a 13.4% downturn compared to March 2024. DraftKings, in partnership with Resorts Casino Hotel, followed closely with $19.9 million, which was a significant 13.4% boost compared to the prior year.
Land-Based Casino Revenue Takes a Hit
In an additional blow to New Jersey’s traditional gambling establishments, land-based casino revenue fell by 3.7% year-on-year in March, amounting to $230.9 million. While slot machines managed a slight win increase of 0.5%, table game revenue plummeted by 14.6%.
Borgata continued to lead the land-based market with $58.4 million, a modest increase of 3.3%, followed by Hard Rock at $44.5 million, which barely edged up by 0.2%. Ocean Casino struggled, reporting a 14.8% decline to $34.7 million.
March’s tax revenue from gambling reached $59.8 million, predominantly coming from igaming at $36.5 million, land-based casinos accounting for $14.3 million, and $8.8 million from online sports betting. An additional $241,482 was collected from retail sportsbooks.
Conclusion
The unprecedented rise in igaming revenue highlights a potential paradigm shift within the New Jersey gambling scene, as consumers increasingly favor digital platforms over traditional channels. While igaming thrives, the state’s conventional betting sectors may need to reassess strategies to adapt to these changes and recapture lost ground.