New Jersey gambling revenue rises in April
New Jersey’s iGaming Revenue Approaches Record Heights
In April, New Jersey’s gambling revenue demonstrated a robust year-on-year increase of 5%, attributed largely to the thriving iGaming sector, which more than compensated for declines observed in both the sports betting and land-based casino markets.
Total revenue for the month reached an impressive $536.6 million, surpassing April 2022’s $510.9 million. However, it fell short by 1.7% compared to March 2023, reflecting the fluctuations typical of this vibrant industry.
Once again, iGaming emerged as the frontrunner in New Jersey’s gambling landscape, outpacing land-based casinos in total revenue generated. However, broader market growth was hindered by drops in other sectors, as reported by the New Jersey Division of Gaming Enforcement.
iGaming Revenue Nears Record Levels
iGaming revenue totaled $235.2 million in April, marking a significant 25.2% increase from the previous year. This figure is just shy of the record-breaking $243.9 million achieved in March 2023.
Out of this total, a remarkable $232.8 million was garnered from “other authorized games,” including slots, reflecting a notable 25.4% growth. In contrast, online poker contributed $2.4 million, posting a modest increase of 3.2%.
Leading the market, FanDuel and Golden Nugget Atlantic City reported a combined revenue of $52.9 million, a staggering 35.3% increase. Following closely were DraftKings and Resorts Casino Hotel with $46.9 million—up 19.5%—demonstrating the fierce competition among operators. BetMGM and Borgata took in $29.6 million, with Borgata’s standalone brand contributing $20.8 million. Caesars and Tropicana Atlantic City rounded out the top five with $15.9 million.
Sports Betting Market Confronts Challenges
In stark contrast to the growth in the iGaming sector, New Jersey’s sports betting market faced a decline, with revenue dropping 14.8% year-on-year to $90.5 million.
Online sports betting revenue fell by 15.7% to $87.9 million, although the retail segment showed promising growth, increasing 34.1% to $2.6 million. The monthly handle for sports betting reached $994.4 million, marking a 1.5% decline from the previous year and a 10.4% dip from March. Online betting wagers accounted for $954.1 million, while retail bets totaled $40.4 million.
The state’s hold for the month was calculated at 9.1%. On the operator front, FanDuel and Meadowlands dominated with $31.8 million in revenue, with precise handle data for individual operators remaining unpublished. DraftKings and Resorts Casino Hotel trailed in second place with $22.8 million, while BetFanatics and Bally’s reported $12.9 million, followed by BetMGM and Borgata at $7.1 million, and Bet365 and Hard Rock completing the top five with $5.6 million. In the retail segment, Meadowlands led significantly with $1.7 million.
Land-Based Casinos Struggle to Keep Pace
The monthly report highlighted a 2.7% decline in land-based casino revenue, totaling $211 million. Traditionally the cornerstone of gambling revenue in New Jersey, the exponential growth of iGaming has resulted in land-based casinos slipping into a secondary position.
While slot machine revenue increased by 2.1% to $162.2 million, table games revenue saw a significant decline of 16%, dropping to $48.8 million.
From a tax perspective, the total revenue contributed reached $59.8 million, which included $35.3 million from the iGaming sector, $12.7 million from land-based casinos, $11.5 million from online sports betting, and $212,287 from retail sports wagering.
As the gambling landscape in New Jersey continues to evolve, stakeholders must concentrate on strategies that adapt to changing consumer preferences, ensuring robust growth in the iGaming sector while innovating in sports betting and traditional casino operations.
