Sports betting performance contributes to NJ market growth in October

Sports betting performance contributes to NJ market growth in October

Monday, November 19, 2018 Posted by News Team
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Vertical has generated revenue of $52.0m since market opened in June

New Jersey’s regulated gambling market has reported a 15.8% year-on-year increase in revenue for October, with the newly-regulated sports betting vertical continuing to grow rapidly. 

While sports betting remains the state’s smallest vertical in terms of revenue, it has grown rapidly since the market opened in mid-June. Sports betting revenue for October was $11.7m, with amounts wagered growing to $260.7m in just the fourth full month since the market opened. 

This came primarily from online wagering, which generated $174.4m of the total, with the remaining $86.3m coming from on-site wagering. 

The majority of revenue came from Resorts Digital, the licensing partner of DraftKings, which accounted for $5.1m of the total. Its closest competitor among land-based casinos was Ocean Resort, which only opened to the public on June 27th, with revenue of $824,193. In total, the state’s land-based casinos generated revenue of $6.9m from sports betting.

Resorts Digital’s performance also outstripped that of New Jersey’s two racetracks, Meadowlands and Monmouth Park. Meadowlands, which is partnered with DraftKings’ main fantasy sports rival FanDuel, generated revenue of $3.5m, with Monmouth Park contributing an additional $1.2m. 

Total market revenue grew to $239.1m, with the bulk of revenue coming from the state’s land-based casino market. Total land-based gaming revenue grew 8% to $200.6m, with slot machine win rising to $142.5m and table games contributing an additional $58.1m. 

The state’s legal iGaming sites posted total revenue growth of 30.1% to $26.8m.  The state’s peer-to-peer games revenue was down sharply, falling 14.5% to $1.7m, though this was offset by strong growth in other casino games, which saw revenue grow to $25.1m. 

Golden Nugget is established as the largest source of revenue, contributing $9.7m of the iGaming total - up 57.6% from the prior year. It was followed by the Borgata, which saw revenue grow 4.4% year-on-year to $4.4m for the month. 

Total tax paid in October amounted to $19.8m, with $14.4m coming from the 8% gross revenue tax on land-based gaming, followed by $4.0m from internet gaming, which is subject to a 15% tax on revenue. Sports betting contributed $233,397 from on-site wagering, which is taxed at 8.5% of revenue, and a further $1.1m from online betting. 

For the year to date, New Jersey has generated total revenue of $2.4bn from gambling, up 6.3% year-on-year. Land-based gaming was responsible for $2.1bn of the total, followed by $242.7m from internet gaming. Sports betting has generated revenue of $52.0m since the market opened.

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