NJ gambling sites combined to bring in $87.8 million for the month of August, which is a new record. It’s only the slightest of increases over July, however, when the total was $87.5 million. Meanwhile, retail revenue climbed 35%, so in that light, stable online revenue is a victory in its own right.
Adding to this, sportsbooks in the state brought in an additional $39.5 million, most of this from online channels. Total combined gaming revenue for the state was $326 million, bringing the total for the year to date to more than $1.6 billion.
Data comes from the latest report published by the NJ Division of Gaming Enforcement.
NJ online gambling highlights: August 2020
Here are some of the numbers that stick out from the newest data:
- Combined revenue for online casinos and poker in August amounted to $87,772,968, a new record
- Online casinos won $84,737,965, an increase of over $2 million and also a new record
- Online poker sites pulled in just $3,035,003, a large drop from $4,818,561 in July
Online casinos drove growth in August. Those gains were almost entirely erased by a decline from the poker vertical. The main reason for that is that July poker revenue was unusually high due to the WSOP NJ online bracelet series, which caused its revenue to double temporarily.
The gains in the casino vertical came almost entirely from Borgata online casino and its skins, which leapt from under $14.5 million in July revenue to more than $19 million. It reclaimed the second-place spot in the state from Resorts, which had snagged it last month.
Caesars was the only other operator to see a big increase in casino revenue, from $6.8 million to $7.9 million. The quiet launch of Wynn Casino on its license may have helped. On the other hand, its total revenue dropped thanks to the plummeting contribution from WSOP.
On the other side of things, market leader Golden Nugget online casino had a weak showing. In July, it set a record of its own with $31.5 million in winnings between its skins. In August, that fell to just $27.7 million, its worst month since April. Though still miles ahead of the pack, its market share dropped to 31.5%.
NJ online gambling revenue breakdown
Revenue / ∆ Monthly (normalized) / ∆ Yearly:
- Total: $87.77 million / +0.3% / +113.6%
- Online casinos: $84.74 million / -1.7% / +120.9%
- Online poker: $3.04 million / -37.0% / +77.7%
Retail gaming in New Jersey might not be back where it was last year, but recovery is well underway. Moreover, the sustained boom in online gaming has just about made up for it. Whereas July’s total gaming revenue was down 33% year-on-year, that deficit shrank to 7.5% in August.
Even better, from the point of view of the state and its citizens, tax revenue is back in the black in terms of annual growth. Though retail revenue is still down, online revenue has doubled, and it is taxed at a higher rate. Total gaming taxes in August 2019 amounted to $29.4 million, but this year they totaled $32.4 million, an increase of more than 10%.
Even online poker, despite the monthly drop, remains up almost 80% year-on-year. The surge in iGaming traffic happened quickly when casinos shut down in March. It might therefore have been expected that it would come down just as quickly when they reopened, but that has not been the case. It will be very positive for the industry if it turns out that new players acquired during the pandemic tend to stick around afterwards.
NJ online sports betting revenue
- Total NJ sports betting: $39.5 million
- Online sports betting: $34.3 million
NJ online sports betting is through the roof with the NHL and NBA playoffs underway and the return of Major League Baseball. August was a record month for handle, with $602 million in bets placed online, plus an additional $66 million at retail sportsbooks.
As usual, Meadowlands Racetrack was the number one licensee, with $3.5 million in retail winnings and $17.6 million online, most of that from FanDuel. Resorts was in second place, with DraftKings, Fox Bet and its own self-branded sportsbook producing a combined $10 million.
Overall hold, on the other hand, has continued to fall. Sportsbooks — online and retail — paid out an average of 93.2 cents on the dollar, up two-tenths of a cent from July.
September should be an even bigger month, as the NHL and NBA playoffs intensify in their later stages, and the NFL season kicks off.
For more details about the resurgence of NJ sports betting, get the full story at Legal Sports Report.
Detailed numbers by operator/product
|August 2020||July 2020||∆ Monthly||August 2019||∆ Yearly|