New Jersey iGaming Jumps 21% as Casinos See Modest Growth
New Jersey numbers show both iGaming and land-based casino revenue growing.
Atlantic City Casinos continue growth in January revenue report. © Fiaz Mohammed, Unsplash
Key Facts:
- Total Gaming Revenue in January was $553.9 million
- That’s down almost 1% from last January
- Gross Revenue from sports betting plummeted 28.4%
- iGaming was up 20.9%
New Jersey January’s revenue report from the New Jersey Division of Gaming Enforcement was chock full of surprises. Still, the most notable was the huge decrease in revenue from sports betting.
While sportsbook hold dipped slightly from 10.3% to 10.1% percent, the real difference was in handle. Total bets placed with New Jersey sports books, both retail and online, declined from $1.7 billion last January to $1.1 billion this year.
Some people pointed to market saturation, but it was most likely weather-related. However, with nearby Philadelphia flying high through the NFL playoffs and on to win the February Superbowl, it does leave one scratching their head.
In another blow to cannibalization claims, both iGaming and land-based casinos saw growth in January, though much as it has been the last 18 months, the growth was a bit lopsided.
Retail casinos grew by about 2.5% YOY to $210 million in revenue, while iGaming continued to rip up by nearly 21% to more than $221 million.
If I had a nickel for every time iGaming revenue exceeded brick-and-mortar revenue in New Jersey, I’d only have two nickels. Still, it’s weird that it has happened twice now and will likely draw as many headlines as the precipitous drop in sports betting revenue.
FanDuel and DraftKings Remain Leaders
FanDuel and DraftKings continue to punch it out for the top place in the iGaming market. DraftKings only managed 8% growth YOY and fell to $44 million, while FanDuel continued with double-digit growth to the top of the pack at almost $50 million.
FanDuel and DraftKings also were the largest sports betting markets by a wide margin. FanDuel was once again the leader with $53 million, while DraftKings was second with 35 million. BetMGM was at best and also ran in third with only 12% of the revenue of second place DraftKings with 7 million.
In retail casinos, there are three clear favorites. The Borgata posted a 60 million in table win in January, and Hard Rock and Oceans slugged it out for third, with Hard Rock taking the lead this month with $38 million and Oceans still posting a respectable third at $35 million. None of the state’s other six casinos managed to even break 17 million except Harrah’s, which earned 17.1 million.
What’s Next for February?
Looking towards February, many are expecting a rebound in sports betting with a local favorite in the Super Bowl and the many event parties Atlantic City hosts around the event. Others point to a generally better weather pattern in the state so far in February, though it remains to be seen if the extra day in the calendar for leap year last year upsets comparables.
Others are looking to see if iGaming will continue to post 20%+ gains throughout the rest of the year and if the time has finally come when its revenue will eclipse that of the brick-and-mortar casinos for good, though others point to a likely summer rebound for the Boardwalk casinos.
New Jersey’s gaming revenue continues to be a bellwether for the US, with fierce competition between land-based and online operators. Whether iGaming’s growth is a one-off or a sign of a lasting shift remains to be seen. But all eyes will be on February’s numbers to see which trend prevails
