New Jersey Gambling Revenue Sees Growth Despite June Sports Betting Dip

New Jersey’s casinos and racetracks experienced a notable decline in sports betting revenue in June, with a decrease of nearly 24% for casinos alone and an overall state decline of 9.5% when including horse tracks.

According to figures released by the New Jersey Division of Gaming Enforcement (NJDGE), the total gambling revenue for the state, including internet gambling and money won from in-person gamblers, reached $491 million, marking a 7.4% increase.

Since New Jersey’s pivotal role in the 2018 Supreme Court ruling that allowed states to offer legal sports betting, the state has been a leader in this sector. However, the NJDGE reported that sports betting generated only $27.1 million in revenue for casinos in June. Including horse tracks, the total sports betting revenue stood at $60 million.

Factors Influencing Sports Betting Revenue Decline

Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, pointed out the unexpected nature of the nearly 24% decline in sports betting revenue for Atlantic City’s casino operators, noting recent positive performances in the sector. She explained that various factors, such as odds set by bookmakers, public bets, and live event outcomes, contribute to the inherent variability in gambling revenue.

Mark Giannantonio, president of Resorts Casino and the Casino Association of New Jersey, attributed the decline primarily to “poor luck” in June. Resorts Digital, the online arm of Resorts Casino d with DraftKings, saw a 43.3% drop in sports betting revenue, totaling $14.3 million. The physical Resorts casino’s sports betting revenue fell by 34% to just over $99,000. The Ocean Casino also reported a significant swing from $82,000 in revenue last June to a loss of $18,725 this June. Monmouth Park Racetrack experienced a 37% decline, bringing in $904,000 from sports betting.

Conversely, some casinos saw an increase in sports betting revenue. Bally’s reported a substantial rise, taking in nearly $1.9 million, up from $351,000 a year earlier. Hard Rock nearly doubled its sports betting revenue, reaching $4.6 million in June.

Overall Gambling Revenue Trends

Despite the challenges in sports betting, overall gambling revenue for New Jersey casinos showed a positive trend.

Borgata led the way with $110 million, a 5.7% increase.

The Golden Nugget followed with $64.2 million, up nearly 20%. Hard Rock reported a significant 24.4% increase, winning $63.7 million.

Other casinos like Tropicana and Bally’s also saw notable increases, with Tropicana up 30.7% to $38.5 million and Bally’s up over 27% to $24.6 million.

However, not all casinos experienced growth. Ocean Casino’s revenue dipped slightly by 0.4% to $39.6 million. Caesars and Harrah’s saw declines, with Caesars down over 11% to $19.2 million and Harrah’s down 8.8% to $19.1 million. Resorts reported a 2.3% decline, totaling $15 million.

The figures reflect a broader trend where internet and sports betting money must be shared with parties such as sports books and technology platforms, meaning not all the revenue is retained by the casinos. For this reason, casinos consider in-person gambling revenue as their core business. Only Ocean and Hard Rock managed to win more from in-person gamblers this June compared to June 2019, a significant concern for Atlantic City casinos and their parent companies.

Looking Ahead: Implications for the Future

Despite the decline in sports betting revenue, New Jersey’s gambling market remains robust. The state’s ability to maintain growth in total gambling revenue, even with fluctuations in sports betting, highlights the resilience and adaptability of its gaming industry. With strategic adjustments and favorable conditions, New Jersey casinos and racetracks could see a rebound in sports betting revenue in the coming months.

Source:

Plain old bad luck? New Jersey sports betting revenue down 24% at casinos, and 9.5% overall in June, apnews.com, July 16, 2024.