Internet Gambling Revenues Up Again In New Jersey

But sports betting gets the headlines as wagers reach $95.6 million in August

Figures released Wednesday by the New Jersey Division for Gaming Enforcement show that online gambling revenues continued double digit growth in August, rising 17 percent year-on-year to $24.8 million, although the media focused rather on the state’s burgeoning sports betting sector, which delivered $95.6 million in wagers during the month – more than twice that bet in July this year following the liberalisation of sports betting by a US Supreme Court decision.

Numbers for the second full month of sports betting show casinos and racetracks took in $95.6 million in bets on sporting events, up from $40.6 million in July. That translated to $9.1 million in gross revenue.

The Associated Press news agency reported that almost $74 million was wagered at on-site betting windows, and $21.7 million was bet on sports via online or mobile phone apps, with DraftKings scoring an early mover advantage to account for most of that. InfoPowa readers will recall that DraftKings has partnered with Resorts Digital Gaming in the state.

The numbers helped boost Atlantic City casino revenue to nearly $304 million, a year-on-year increase of more than 24 percent.

“With the new casinos that opened in June and the addition of sports wagering options, including online alternatives, the gaming industry has experienced growth rates in July and August that have not been achieved in years,” said David Rebuck, director of the gaming enforcement division.

“It is an exciting time for Atlantic City and we look forward to continued revenue growth going forward.”

The Meadowlands Racetrack in East Rutherford, just outside New York City, led the market with just over $3 million in sports betting revenue in August; Resorts Digital was close behind at $2.97 million. Monmouth Park racetrack in Oceanport won just under $900,000; the Borgata casino won just over $855,000; Ocean Resort Casino won nearly $520,000; Harrah’s won nearly $300,000; Bally’s won nearly $270,000; Golden Nugget won over $215,000, and Resorts casino won just over $98,000.

So far this year those outlets have won $16.4 million on sports bets. Part of the money they have taken in as bets involves games that have not yet been played, including baseball’s World Series and football’s Super Bowl. That money will be accounted for after those events are decided.

The companies’ retained about 5 percent of the amount bet on completed events, whilst the state earned useful tax revenues – $516,000 from brick-and-mortar wagering at a tax rate of 8.5 percent, and $406,000 on a 13 percent online sports betting tax.

UPDATE:

Breaking down the online gambling numbers in the DGE report, online casinos contributed just under $23 million for an almost 20 percent y-o-y revenue increase, whilst online poker declined 13 percent to a little over $1.8 million.

In YTD terms, online gambling in New Jersey is currently up 16.5 percent at $190.2 million, with $14.8 million of that coming from online poker (down 11 percent y-o-y) and $175.4 million from online casino.

Golden Nugget was again the most prolific online revenue performer at$8.2 million in August, well ahead of Borgata ($4.65 million) and Resorts – The Stars Group ($4 million). Tropicana and Caesars Interactive were closely matched at $3.6 million and $3.5 million respectively; whilst newcomers Hard Rock Atlantic City and Ocean Resort Casino respectively contributed $482,000 and $386,000 – both well up from their first month of operation in July.