igaming on top in January despite end to record run

The iGaming Sector Surges While Sports Betting Faces Challenges in New Jersey

New Jersey’s gambling landscape showcased a mixed performance in January, with a remarkable growth in iGaming revenue juxtaposed against a notable decline in sports betting. Total gambling revenue for the month reached an impressive $553.9 million (£439.6 million/€528.1 million), indicating a modest decrease of 0.9% compared to January of the previous year, but demonstrating a robust 6% increase over December.

The latest figures from the New Jersey Division of Gaming Enforcement (NJDGE), released on February 14, highlight these trends. The downturn in year-on-year revenue was primarily attributed to the struggling sports betting segment, while the iGaming sector continued its upward trajectory, reflecting broader trends in online gambling.

For January, iGaming revenue soared to $221.6 million, representing a substantial year-on-year increase of 20.9%. This figure fell slightly short—by just 2.8%—of December’s record revenue of $228 million, marking the second occasion iGaming led the state’s gambling revenue in a single month, following its initial achievement in October 2024.

Delving deeper into iGaming performance, revenue from ‘other authorized games’—which includes online slots—accounted for $218.9 million, showcasing a remarkable growth rate of 21.1%. Additionally, online poker revenue witnessed an uptick, rising 8.1% to $2.7 million.

Leading the iGaming charge were FanDuel and Golden Nugget Atlantic City, which collectively generated $49.7 million, a robust increase of 26.4% year-on-year. Following closely behind, DraftKings and Resorts Casino Hotel saw their revenue decline slightly to $44.1 million, securing the second position. BetMGM and Borgata secured the third spot with $28.8 million, while Borgata’s own platform generated a commendable $21.9 million. Completing the top five were Caesars and Tropicana Atlantic City, with a cumulative revenue of $14.8 million.

Sports Betting Faces Significant Decline

In stark contrast, sports betting revenue in January plummeted by 28.4% year-on-year to $122.2 million, although this represented a substantial improvement over December’s figures, which tallied just $62.8 million.

Breaking down the January figures, online sports betting generated $118.5 million—a year-on-year decrease of 29%. Retail sportsbooks contributed a modest $3.6 million, reflecting a decline of 6.4% from the previous year.

In terms of overall wagering, the $1.15 billion bet in January represented a 33.1% decrease from the record $1.72 billion wagered in January of the previous year. This total comprised $1.11 billion from online wagers and $46 million generated from retail betting.

Consequently, New Jersey recorded a monthly hold of 10.61% for January.

Among New Jersey-licensed operators, FanDuel and its partner, Meadowlands, led the online sports betting market with a revenue figure of $53.1 million, although this reflects a downward trend of 34.2% year-on-year. DraftKings and Resorts Casino Hotel captured the second position with revenues of $35.6 million, a decrease of 11.5% compared to last year. BetMGM and Borgata trailed in third place, reporting $7.4 million in revenue, marking a 6.3% increase. Fanatics and Bally’s reported $6.8 million, while Bet365 and Hard Rock surpassed expectations, producing $4.8 million, an increase of 29% year-on-year.

Casino Revenue Shows Slight Growth Amid Controversial Smoking Ban Debate

Land-based casinos, historically the anchor of New Jersey’s gambling revenue, also reported growth in January, with earnings up 2.6% year-on-year, totaling $210.1 million.

Revenue from slot machines increased by 2% to $145.4 million, while table games revenue saw a 4.1% rise, reaching $64.6 million.

Borgata maintained its leadership stance with total revenue of $60.4 million, reflecting a 4.7% increase. Hard Rock followed closely with $38.1 million (up 2%), while Ocean Casino recorded $35.2 million, an increase of 6.4%. Tropicana Atlantic City showcased the most significant growth, with revenues climbing 13.2% to $15.1 million.

This growth comes amidst ongoing discussions regarding the regulation of smoking in New Jersey casinos. While the state implemented a ban on indoor smoking in 2006, casinos are currently excluded from this regulation. Former state senator Loretta Weinberg, who championed the original ban, has been vocal in her support for ending this exemption and enforcing a smoking ban in casinos across the Garden State.

In terms of taxation, January saw iGaming taxes generate approximately $33 million statewide. Online sports betting taxes contributed $15.4 million, while retail sportsbooks accounted for $307,487. Gross revenue from land-based casinos equated to $13.3 million, bringing the total gambling tax for the month to $62.1 million.

As New Jersey navigates both triumphs and challenges in its gambling sector, the trends observed in January will be pivotal in shaping the strategies of stakeholders within the industry, setting the stage for continued evolution in this ever-dynamic landscape.