igaming draws most gambling revenue in February

In February, igaming continued to dominate as the primary source of gambling revenue in New Jersey, contributing significantly to an overall market revenue increase of 5.1% year-on-year in the Garden State.

The state’s total monthly revenue reached an impressive $484.8 million (£373.5 million/€444 million), a slight dip of 12.5% compared to January 2023, according to the New Jersey Division of Gaming Enforcement (NJDGE).

This growth trajectory was observed across two of New Jersey’s three key gambling sectors, with increases in both igaming and sports betting, although it was somewhat offset by a decline in land-based casino revenue.

Igaming Revenue Posts 14% Increase in New Jersey

Focusing on igaming, this sector recorded a remarkable 14% increase year-on-year, culminating in $207.8 million in revenue. This milestone marks only the third instance where igaming emerged as the leading segment for gambling revenue in a single month within New Jersey.

Delving deeper, $205.4 million of this revenue derived from “other authorized games,” including slots, which witnessed a comparable 14% increase. Peer-to-peer poker contributed an additional $2.4 million, marking a modest rise of 2.6%.

FanDuel and Golden Nugget Atlantic City maintained their top position with a combined revenue of $44.1 million, reflecting an increase of 10.3%. Close competitors DraftKings and Resorts Casino Hotel followed closely with $43.1 million, exhibiting a 5.9% growth.

BetMGM and Borgata secured the third position with $28.2 million, while Borgata’s own platform yielded $20 million. The top five in igaming revenue was rounded out by Caesars and Tropicana Atlantic City, both posting a total of $14 million.

Sports Betting Revenue Increases Despite Decline in Handle

Turning to the sports betting sector, New Jersey reported an 8.9% revenue increase year-on-year, reaching $73.6 million in February.

Of this, online betting accounted for $72.7 million, marking an 11.1% rise. Conversely, retail sports wagering revenue plummeted 60.9%, amassing only $824,895.

Overall, players wagered a substantial total of $988.9 million on sports during February, representing an 8.5% decrease compared to last year and a 14.2% drop from January 2023. Notably, $949.6 million was wagered online, while retail sportsbooks garnered just $39.3 million.

As a result, the monthly hold for February stood at 7.44%.

In terms of operator performance, FanDuel and Meadowlands solidified their leadership in the online market, generating $33.9 million in revenue—an impressive 27.2% increase from the previous year. The NJDGE, however, does not disclose individual operator handle figures.

DraftKings, a strong rival of FanDuel, came in second through its partnership with Resorts Casino Hotel, reporting $20.3 million in revenue—a decline of 16.4% from the previous year.

BetMGM and Borgata edged into third place, with revenues of $5.9 million, representing a 41.9% increase. Newcomers Fanatics and Bally’s followed, earning $3.5 million, with no year-on-year comparison available since their partnership commenced in May 2024.

Bet365 and Hard Rock rounded out the top five in sports betting revenue with $4 million, reflecting a 35.1% increase.

In retail betting, only three of the nine operators in the state reported positive revenue, with Resorts Casino Hotel leading at $81,843.

Land-Based Casino Revenue Dips to $203.5 Million

On the land-based side, Atlantic City’s casinos experienced a revenue decline of 3.8%, totaling $203.5 million in February.

This downturn was characterized by a 4.3% drop in slot machine revenue, which reached $152.1 million, while table games revenue fell by 2.5% to $51.4 million.

The Borgata continued to lead the market, reporting $49.9 million in revenue, a decrease of 6.9%. Hard Rock followed with $41.9 million, reflecting a 1.8% increase, and Ocean Casino reported earnings of $32.4 million, up by 4.3%.

Implications of Potential Tax Increases on Gambling in New Jersey

Concerning taxation, New Jersey generated a total of $53.3 million from gambling operations in February, broken down as follows: $31.1 million from igaming, $12.7 million from land-based casinos, $9.4 million from online sports betting, and $161,488 from retail sportsbooks.

However, proposed tax increases by Governor Phil Murphy could significantly change the landscape. Last month, he suggested raising sports betting and igaming tax rates to 25%, compared to the current rates of 13% and 15%, respectively.

This proposal has garnered criticism from the Sports Betting Alliance (SBA), which comprises major players like BetMGM, DraftKings, Fanatics Sportsbook, and FanDuel. The SBA articulated concerns that increasing gambling taxes could raise costs for consumers, hinder operator investments in job creation and partnerships with local businesses, and disadvantage the regulated industry against unregulated offshore operators who do not contribute to state taxes.