New Jersey Sports Betting Revenue Drops 24% at Casinos

New Jersey’s sports betting revenue faced significant declines in June 2024, with casinos seeing a 24% drop and overall state revenue decreasing by 9.5%. According to the New Jersey Division of Gaming Enforcement, sports betting revenue at the state’s nine casinos fell to $27.1 million last month, down from $35.4 million a year earlier. Including revenue from horse tracks, the total sports betting revenue for June was $60 million.

• Revenue Decline: New Jersey's sports betting revenue dropped by nearly 24% at casinos and 9.5% statewide in June 2024 compared to the previous year.
• Total Gambling Revenue Increase: Despite the decline in sports betting, overall gambling revenue in New Jersey, including internet and in-person gambling, rose by 7.4% to $491 million.
• Variability in Results: Experts attribute the decrease in sports betting revenue to the inherent variability in gambling outcomes, rather than solely to poor luck.

 

Recent Movements

The decline comes despite an increase in total gambling revenue for the state, which reached $491 million in June, a 7.4% rise from the previous year. This includes revenue from internet gambling and in-person gambling activities.

Experts suggest that the decrease in sports betting revenue could be attributed to the variability of sports outcomes and odds set by bookmakers. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, noted that while some casinos and racetracks experienced declines, others saw increases. This variability is typical in the gambling sector.

Mark Giannantonio, president of Resorts Casino and the Casino Association of New Jersey, attributed the drop to “poor luck.” Resorts Digital, associated with DraftKings, experienced a 43.3% decline in sports betting revenue, falling to $14.3 million. Resorts’ physical casino saw a 34% drop to just over $99,000. Ocean Casino’s sports betting revenue swung from a positive $82,000 last June to a loss of $18,725 this year. Monmouth Park Racetrack reported a 37% decline in sports betting revenue, totaling $904,000.

Despite these declines, some casinos reported positive performances. Bally’s saw a substantial increase of over 440% in sports betting revenue, reaching nearly $1.9 million. Hard Rock nearly doubled its revenue to $4.6 million.

In terms of overall gambling revenue, the top performers included Borgata with $110 million, up 5.7%; Golden Nugget with $64.2 million, up nearly 20%; and Hard Rock with $63.7 million, up 24.4%. Conversely, Ocean Casino reported a marginal 0.4% decrease to $39.6 million, while Tropicana saw a 30.7% increase to $38.5 million. Caesars and Harrah’s reported decreases of over 11% and 8.8%, respectively.

 

Conclusions

Casino operators remain concerned about their core business, which is money won from in-person gamblers. Only Ocean and Hard Rock won more from in-person gamblers this June compared to June 2019, highlighting ongoing challenges for the Atlantic City casino industry and its parent companies.

The broader implications of these trends could affect future investment and operational strategies in New Jersey’s gambling sector. As the industry adapts to fluctuating revenues and market conditions, stakeholders will be closely monitoring upcoming performance metrics and adjustments in gaming regulations.