New Jersey igaming revenue record tumbles again in October

Meanwhile, the Garden State’s sportsbook operators showed evidence of player-friendly NFL results hitting performance. Major operators have flagged this as a risk to fourth quarter revenue in their Q3 results.

Total gaming revenue in New Jersey across all channels and verticals was $499.8 million (£394.4 million/€472.5 million) in October. This exceeds last year’s $487.1 million monthly total but falls 10.5% short of $558.3 million in September this year.

Licensees paid $55.0 million in taxes for the month, with internet gaming again the main driver. It contributed $31.9 million to that total from a 15% gross revenue levy. Brick-and-mortar casinos (taxed at 8% of GGR) added a further $13.0 million, with $9.9 million and $194,771 coming from online (13% tax) and retail sports betting (8.5%) respectively.

Igaming revenue surpasses land-based casinos in New Jersey

Data from the New Jersey Division of Gaming Enforcement again highlights igaming as the standout segment on October. During the month, gaming win for the vertical climbed 28.1% year-on-year to $213.6 million. This surpasses September’s existing record of $208.1 million by 2.8%.

Revenue from games including online slots and tables increased by 28.5% to $211.3 million. However, peer-to-peer poker revenue dipped 1.0% to $2.3 million.

The increase means igaming was the main source of gambling revenue in New Jersey during October, surpassing the $208.7 million generated by land-based casinos.

FanDuel took top spot within the igaming sector with $48.3 million in revenue. The Flutter-owned operator is partnered with Golden Nugget Atlantic City in New Jersey.

DraftKings, partnered with Resorts Casino Hotel, slipped to second with $45.6 million worth of igaming revenue. BetMGM, a Borgata partner, remained third with $25.5 million in total revenue.

Golden Nugget led the master licensees with $67.1 million in total igaming revenue for the month. As well as FanDuel, the operator is also partnered with BetRivers, Betway, Jackpot City and DraftKings’ Golden Nugget Online Gaming.

In contrast to igaming growth, physical slot machine revenue dropped by 1.9% to $159.9 million. Land-based table games revenue was down 25.0% to $48.8 million.

New Jersey sports betting revenue drops 16.0%

However, despite ongoing growth in igaming, the situation was rather different in the sports betting segment. Revenue here reached $77.5 million, down 16.0% year-on-year and 35.2% behind September.

The decline came amid a 12.5% drop in player spending, which was down from $1.29 billion last year to $1.12 billion. This figure, however, was 37% more than the $1.13 billion wagered in September. Online spending totalled $1.09 billion and retail $43.8 million.

As such, state-wide hold in New Jersey for October was 6.85%, in contrast to September’s 11.28%. This tallies with DraftKings’ Q3 report warning of players’ NFL wins hitting performance in October, which forced the operator to cut its full year revenue and earnings forecasts. Flutter parent FanDuel, on the other hand, has highlighted its pricing accuracy as a key factor in mitigating a similar impact on revenue and earnings.

FanDuel still the one to beat in sports betting market

Analysing operator performance, FanDuel, partnered with Meadowlands Racetrack, led the way with $34.8 million in revenue. Having taken $380.3 million in bets, this left a 9.15% hold.

DraftKings and partner Resorts Casino Hotel remain second with $22.2 million from $237.7 million. This meant its 9.34% hold actually marginally surpassed that of FanDuel.

Below the top two, hold actually improved further down the rankings. BetMGM and the Borgata took third with $7.3 million off $55.2 million, meaning a 13.22% hold. Pricing and product enhancements have been the watchword for the MGM-Entain joint venture ahead of the NFL season kickoff.

Bet365 now sits in fourth place. Players wagered $35.0 million through its app, with a 10.46% hold leaving $3.7 million in revenue.

Caesars Interactive and Monmouth Park followed on $3.1 million worth of revenue and a $25.7 million handle, leaving a 12.06% hold. Bet Rivers, another Monmouth partner, took $930,826 from $9.2 million for a 10.16% hold.

Other operators include Fanatics, a Bally’s partner, with $1.6 million in revenue and a $14.0 million handle for an 11.43% hold. Close behind in revenue terms was ESPN Bet, another Resorts partner, on $1.6 million from $6.8 million – an impressive 23.53% hold and slight growth in terms of stakes month-over-month, but far behind the leaders.

It was not quite so good news for Hard Rock Bet, however. Via its partnership with the Hard Rock Hotel and Casino Atlantic City, it generated a loss of $1.0 million off of a $7.0 million handle.

Year-to-date revenue hits $5.22 billion

As for year-to-date performance, total market revenue in New Jersey for the 10 months to the end of October was $5.22 billion. This is 9.3% ahead of $4.77 billion at the same point in 2023.

Much of this increase is down to igaming growth, with revenue in this market up 23.7% to $1.95 billion. Land-based casinos were the main source of revenue for the year as a whole, but revenue here was 1.6% lower at $2.36 billion.

Despite the October decline, year-to-date sports betting revenue was up 13.9% at $912.8 million. Player spending on sports betting was 14.0% higher at $10.33 billion during the 10-month period.

This has generated $560.7 million in taxes for New Jersey over 10 months. Again, internet casino made up the majority, at $292.0 million. Casinos paid $151.0 million to the state, with $115.3 million coming from online sports betting. The retail betting contribution was just $2.5 million.