New Jersey’s thriving sports betting industry experienced a significant downturn in June, with revenue dropping by nearly 24% compared to the previous year. Despite this, overall revenue from sports betting, internet gambling, and in-person casino games in June increased by 7.4%, surpassing $491 million, as reported by state gambling regulators on Tuesday.
New Jersey played a pivotal role in legalizing sports betting nationwide after winning a court challenge against a federal ban in 2018. The state has since been a frontrunner in sports betting revenue. However, in June, sports betting revenue decreased to $27.1 million, a notable 23.9% decline from June 2023 on total wagers of $748 million.
Jane Bokunewicz, from Stockton University’s Lloyd Levenson Institute, expressed surprise at the steep decline in sports betting revenue, considering the sector’s recent positive performance in Atlantic City. She attributed the decrease to factors like oddsmaker-set odds, public bets, and live event outcomes, emphasizing the inherent variability in gambling activities.
Industry officials, including Mark Giannantonio of Resorts Casino and the Casino Association of New Jersey, attributed the downturn in sports betting revenue to “mainly poor luck” in June. Several establishments, such as Resorts Digital and Ocean Casino, experienced significant declines in sports betting revenue, while others like Bally’s and Hard Rock saw better-than-expected results.
The report revealed various casinos’ performances in overall gambling revenue. Notably, Borgata, Golden Nugget, and Tropicana recorded revenue increases, while Caesars and Harrah’s faced declines. The casinos are concerned about the impact of internet and sports betting revenue sharing on their core in-person gambling business.
Ocean and Hard Rock were the only casinos to surpass their June 2019 in-person gambling revenue levels, highlighting a continuing challenge for Atlantic City’s casinos and their parent companies. The industry remains vigilant about sustaining profitability amidst changing market dynamics.
