Economic Forecast
New Jersey's Gambling Industry Shows Mixed Results in Mid-2025
New Jersey's gambling landscape continues to evolve, with a mix of growth and decline across various sectors.
Sports Betting Sector Performance: - Sports betting revenue in New Jersey experienced a 6.6% year-over-year decline as of mid-2025, with combined online and retail sportsbook revenue dropping from $80 million (July 2024) to $74.8 million (latest month)[1]. - The sector is undergoing regulatory tightening, including cracking down on illegal iGaming and proxy sports betting, and proposals to ban "microbets" to address gambling problems[1]. - However, competition among sportsbooks remains strong, offering bettors various promotions and options, although high rollers sometimes face betting limits or bans[1]. - New legal expansions include legalizing fixed odds wagering for horse racing and explicit authorization of esports betting for 18+ competitions, expected to grow significantly in coming years[2].
Traditional Casino and Online Casino Operations: - Online casino gaming remains robust with New Jersey generating $462.2 million in iGaming tax revenue over the last 12 months leading into early 2025, showing its importance in the market alongside states like Pennsylvania and Michigan[4]. - The tax rate on internet gaming revenue is relatively modest at 17.5% (upcoming increase to 19.75%), contributing to a profitable environment for operators[4]. - Live dealer blackjack and other live dealer casino games have gained popularity, with well-known developers like Evolution Gaming and Ezugi providing immersive live online casino experiences 24/7, simulating traditional casino feel from players’ devices[3]. - Promotions integrating both casino games and sports betting (e.g., Borgata Sports) are popular, enhancing user engagement across platforms[5].
Summary Comparison: | Segment | Recent Trend | Revenue/Market Position | Regulatory/Innovation Notes | |--------------------|---------------------------------------------|---------------------------------------------|----------------------------------------------------------| | Sports Betting | 6.6% revenue decline YoY (mid-2025) | $74.8M monthly revenue (down from $80M) | Crackdowns on illegal/proxy betting; bans on microbets; expanded esports and horse fixed odds betting[1][2] | | Online Casino | Strong iGaming tax revenue | $462.2M tax revenue (YTD early 2025) | Modest tax (17.5%, increasing soon); growth in live dealer games; popular promotional offers[3][4][5] | | Traditional Casino | Integrated with online offerings; live dealersboost engagement | Part of broader gambling ecosystem | Combination platforms for casino and sports betting; 24/7 availability for certain games[3][5] |
Additional Findings: - Online sports betting revenue dropped 3.2% to $75.4 million. - For the first seven months of 2025, New Jersey gambling revenue totaled $3.92 billion, an 8.8% increase from the same period in 2024. - Bet365 and Hard Rock rose 45.4% to $4.4 million. - Land-based casino revenue grew modestly, up 4.3% year-on-year to $284.1 million. - Retail sportsbooks recorded a net loss of $680,018 compared to $2.1 million in profit in July 2024. - Casino-based retail sportsbooks posted a $1.1 million loss. - FanDuel and Meadowlands saw a 15.7% decrease in online revenue, earning $26.9 million. - Borgata and BetMGM climbed 21.5% to $6.4 million. - Caesars Palace and Tropicana Atlantic City posted more than a 53% increase, earning $18.7 million. - Online gambling was up 23.3% to $1.63 billion. - Sports betting was the only segment to decline, down 4% to $626.8 million. - DraftKings and Resorts World posted a 16.8% increase in digital segment revenue, totaling $48.6 million. - Borgata's own platform experienced a 6.4% increase, generating $20 million in revenue.
In conclusion, while sports betting revenues have seen a recent decline, likely due to market saturation and regulatory changes, online casinos, especially live dealer and integrated platforms, continue to thrive in New Jersey supported by favorable tax rates and innovative offerings. The expansion into esports and fixed odds horse betting highlights ongoing diversification within the state's regulated gambling sectors[1][2][3][4][5].
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