New Jersey: Sports betting and igaming growth offset land-based decline in July

Year-on-year growth across sports wagering and igaming in New Jersey offset a 6.1% decline in revenue from the Garden State’s land-based market during July.

Total market revenue in July amounted to $547.8m (£423.4m/€496.7m) according to New Jersey Division of Gaming Enforcement figures. This is 8.2% more than $506.2m in New Jersey last year and also 11.6% more than June this year.

Despite the year-on-year decline, land-based gambling remains the main source of revenue. In July, land-based revenue topped $272.3m, down from $290.0m last year. Of this, $207.3m came from slots, a drop of 4.8%, while table games revenue also fell 10.0% to $65.0m.

How far is igaming from overtaking land-based in New Jersey?

The decline in land-based revenue begs the question: could it be surpassed by igaming? For July, igaming revenue hit $195.4m, a 25.9% increase from the same month last year.

Of all igaming revenue, $192.8m was attributed to slots and table games, an increase of 26.4%. The remaining $2.6m came from peer-to-peer poker, down 2.4%.

New Jersey icasino gross revenue by skin

While the skins operating under Golden Nugget’s collectively generated the most revenue, New Jersey’s breakdown of revenue by skin shows DraftKings led the market with $41.7m in revenue for the month. FanDuel, one of Golden Nugget’s skins, followed in second on $37.8m.

Sports betting revenue jumps 31.2%

July is traditionally a quieter month for sports betting but New Jersey’s sportsbooks were the fastest growing segment in the market.

Total player spend hit $652.3m, a rise of 11.1%, with $624.3m coming from online and $28.0m retail. A strong 12.3% hold meant operators generated revenue of $80m, up 31.2% year-on-year.

New Jersey sports betting revenue by skin

With revenue of $31.9m, FanDuel leads the market ahead of DraftKings on $25.9m. BetMGM is best of the rest on $5.2m, with Caesars Sportsbook ($2.9m), Fanatics ($2.7m) and ESPN Bet ($2.4m) its closest challengers.

Igaming biggest tax contributor in New Jersey

New Jersey collected a total of $56.8m in taxes for July. The majority of this – $29.4m – was attributed to igaming activity, which is taxed at 15% on gross revenue.

Internet sports betting, taxed at 13% of gross revenue, generated $10.1m in tax, while retail sports betting, which has a lower tax rate of 8.5%, led to $122,142 in tax.

The remaining $17.1m in monthly tax during July came from the 8% gross revenue tax on land-based casinos.

The year so far: Land-based down, igaming and sports up

Looking at the state’s year-to-date figures, total revenue for the seven months to the end of July was $3.61bn. This is 11.5% higher than at the same point last year.

Land-based casino win is 1.0% lower at $1.63bn, but still the main source of revenue. Slots revenue slipped 1.1% to $1.21bn and table games 0.8% to $422.8m.

Igaming revenue is 22% ahead of last year at $1.33bn. This includes $1.31bn from other authorised games, up 22.4%, and $16.7m poker, down 4.0%.

Sports betting revenue also increased 30.1% to $653.1m, partly due to a 28.9% increase in handle to $7.41bn.

As for tax, some $388.1m was collected by the state in the seven-month period.

Original Article