New Jersey's gambling market has demonstrated remarkable resilience, posting a 7.4% growth in June and continuing to solidify its position as a powerhouse in the industry. June's combined earnings from land-based casinos, igaming, and sports betting reached an impressive $491.0 million. This figure not only surpasses the $457.2 million generated in June of the previous year but also sets the stage for an intriguing analysis of the nuanced performance across different sectors.
Land-Based Casinos: Steady But Incremental Growth
The land-based casino sector in New Jersey saw a modest yet significant increase in revenue, with earnings up by 1.0% to $244.1 million. Slot machines contributed a substantial $184.0 million, reflecting a 0.6% rise. The table games sector fared slightly better, with a 2.5% increase bringing the total to $60.1 million. Though the incremental gains might seem modest, they represent stability and steady performance in a competitive market.
Igaming: The Star Performer
In stark contrast, igaming revenue surged by an impressive 25.2% year-on-year, reaching $186.8 million. While still trailing the land-based sector by $57.3 million, the growth trajectory in igaming is noteworthy. "Other authorized games" within the igaming sector contributed a vast majority of this revenue, amounting to $184.4 million, up 25.6%. However, not all facets of igaming experienced growth; peer-to-peer poker revenue saw a decline of 2.9%, totaling $2.5 million.
The individual performances of key players in the igaming space painted a mixed yet optimistic picture. Golden Nugget generated $51.5 million, marking a 23.3% increase from the previous year. Resorts Digital shone brightly with a 36.4% year-on-year increase, generating $48.6 million. The Borgata also reported positive results, with a revenue of $42.9 million, representing an 8.8% increase.
Sports Betting: Mixed Fortunes
Sports betting revenue, on the other hand, faced some challenges. The sector saw a 9.5% year-on-year decline, bringing in $60.1 million in June, which also represents a 23.7% drop from May's $78.8 million. Despite this dip in revenue, the volume of bets placed revealed an interesting dynamic. New Jersey residents placed bets worth $748.4 million, a 26.6% increase compared to $591.1 million in the same month last year. This suggests that while revenue might have dipped, the interest and participation in sports betting remain robust.
Breaking down the sports betting revenue further, online bets amounted to $719.0 million, while retail sportsbooks took in $29.5 million in bets. Among the leading operators, FanDuel led the pack with $29.1 million in revenue, followed by DraftKings at $14.4 million. BetMGM and Bet365 contributed $3.7 million and $3.4 million, respectively. New entrant Fanatics Sportsbook also made its mark with a revenue contribution of $1.8 million.
Tax Contributions and Year-to-Date Performance
The gambling industry's contributions to state tax revenues were notable. New Jersey’s gambling industry paid $47.8 million in taxes in June, with land-based casino gross revenue tax accounting for $16.2 million. Igaming internet gross revenue tax contributed a considerable $28.0 million, while internet sports wagering tax added $3.6 million. Retail sports wagering from casinos and racetracks contributed smaller sums of $7,782 and $71,191, respectively.
The first half of the year has seen robust market performance, with total market revenue reaching $3.06 billion, a 12.2% rise from last year's $2.73 billion. Land-based casinos contributed $1.36 billion to this total. Slot machines and table games continued to be major revenue generators, contributing $998.3 million and $357.8 million, respectively. Igaming revenue for the first half of the year soared to $1.1 billion, marked by a 21.4% increase. Other authorized games generated $1.12 billion, while peer-to-peer poker saw a slight decline, contributing $14.1 million.
Sports betting showed a strong overall performance for the year, with revenue amounting to $573.1 million, a 30.0% year-on-year increase. The year-to-date handle for sports betting eclipsed $6.76 billion, with online sports betting contributing a substantial $6.53 billion and retail locations adding $231.0 million.
In summary, the gambling market in New Jersey shows impressive growth in both the igaming and land-based casino sectors, despite facing challenges in sports betting revenue. The overall resilience and robust performance across most sectors highlight New Jersey's significant role in the wider gambling industry landscape.