In September, New Jersey’s gambling revenue experienced a modest increase of 1% year-on-year, reaching $563.7 million, as reported by the New Jersey Division of Gaming Enforcement. This figure, although slightly higher than September 2024, was still 12.2% lower compared to the previous month of August.
The slight overall revenue rise was primarily driven by growth in both the online casino and land-based gambling markets. However, this growth was somewhat overshadowed by a significant decline in the sports betting segment, which saw a 24.9% drop in revenue compared to the previous year. Sports betting revenue fell to $89.8 million, with online betting revenue alone suffering a 19.4% decrease, also totaling $89.8 million. Retail wagering, on the other hand, recorded a small loss of $13,173 for the month.
Despite the decrease in revenue, the amount wagered on sports, or the handle, increased by 3.7%, amounting to $1.13 billion. This included $1.07 billion in online wagers and $60.1 million from retail sportsbooks, leading to a monthly hold of 8.72% in the state. In terms of operator performance, FanDuel and the Meadowlands continued to dominate the online market with $37.7 million in revenue, followed by DraftKings and Resorts World with $22.6 million, and BetMGM and Borgata with $7.1 million. As for retail sports betting, Meadowlands took the lead with $4.2 million, with Monmouth Park being the only other operator surpassing the $1 million mark, reporting $1.2 million in revenue.
When considering iGaming, New Jersey came close to breaking records, with online casino revenue reaching $243.1 million. This represented a 16.8% increase from the previous year and was just shy of the $248.4 million record set in August of this year. Revenue from slots and table games contributed significantly, generating $240.7 million, marking a 16.9% rise year-over-year. Additionally, online poker revenue grew by 10.7% to $2.5 million.
Once again, FanDuel and its partner Golden Nugget topped the iGaming sector with $56.6 million in revenue. DraftKings and Resorts World followed closely with $48.4 million, while BetMGM and Borgata rounded out the top performers, bringing in $30.3 million.
On the land-based front, revenue showed a slight increase of 0.1%, totaling $230.7 million in September. This overall growth came despite a 1.8% decline in revenue from slot machines, which brought in $170.1 million. The revenue from table games, however, rose by 5.7% to $60.6 million, providing a boost to the overall land-based sector.
When examining the year-to-date numbers for New Jersey, the total gambling revenue by the end of September was reported at $5.13 billion, marking an 8.7% increase from the same period in 2024. iGaming alone accounted for a significant portion of this growth, with revenue rising by 22.7% to $2.12 billion. Conversely, sports betting revenue saw a decline of 4.4%, dropping to $798.5 million. Meanwhile, land-based gambling revenue increased by 2.5%, totaling $2.21 billion.
The mixed results in New Jersey’s gambling market highlight the shifting dynamics within the industry. The rise in iGaming suggests a strong consumer demand for online casino and poker games, potentially driven by technological advancements and the convenience of digital platforms. In contrast, the drop in sports betting revenue could indicate market saturation or changes in consumer preferences, although the increase in the betting handle suggests that interest in sports wagering remains high.
A different perspective might argue that the fluctuations in sports betting revenues are part of a natural cycle, impacted by seasonal sports events or broader economic conditions. Indeed, some industry insiders suggest that the decline in sports betting revenue could be temporary, with upcoming major sports events potentially reversing this trend. However, others are cautious, noting that sustained growth in the gambling industry will require innovation and adaptation to evolving consumer behaviors.
Overall, while New Jersey’s gambling sector continues to face challenges, particularly in sports betting, the robust performance of online casinos and steady land-based operations provide a solid foundation for future growth. As the state continues to refine its gambling offerings, maintaining a balance between digital and traditional platforms may prove crucial in sustaining and enhancing revenue streams.
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