New Jersey recorded its second-highest iGaming revenue in a single month, showing 20.9 percent year-over-year growth and reaching $221.6 million.
The underlying data clearly shows the public’s appetite for digital gambling. Should The Garden State decide to add crypto iGaming to its regulatory regime, there’s significant room for a larger tax purse with continued growth.
Total gambling revenue in New Jersey rose month over month from December but fell 0.9 percent from January last year.
When breaking down the results by segment, sports betting revenue fell significantly. Year-over-year, January revenue dropped 28.4 percent to $122.2 million. Proportionally, 97 percent of revenue was generated digitally, with $118.5 million.
Both iGaming and sports betting data show the continued digital channel shift, which presents ample opportunity for an expansion in crypto betting.
New Jersey sportsbooks took a total of $1.15 billion in wagers, which was behind last year’s $1.72 billion. 96.5 percent of all wagers were placed online, and operators achieved a hold percentage of 10.61.
The top sports betting operator was FanDuel, which is partnered with Meadowlands. The Flutter-owned gambling giant secured $53.1 million, or 44.8 percent of the state’s total online sports betting revenue.
As is often the case, the regulator reported that DraftKings joined FanDuel in the top two. Also experiencing a decline in last year’s January revenue, the company and its partner Resort Casino Hotel secured 30 percent of The Garden State’s sports betting revenue.
BetMGM had 6.2 percent of New Jersey’s sports betting revenue, with Fanatics ahead of Bet365 in completing the top five.
New Jersey’s iGaming Surge: A Digital Revolution with Crypto Potential
Further analysis of the iGaming segment shows that ‘other authorized games,’ broadly including slots, took $218.9 million or 98.6 percent of total iGaming revenue. This is a 21.1 percent increase year over year. Online poker revenue also rose but by a lesser margin. The medium attracted an 8.1 percent increase from January 2023, generating $2.7 million in revenue.
DraftKings relinquished its top spot by iGaming revenue in New Jersey, as FanDuel came out on top. FanDuel and Golden Nugget Atlantic City reported $49.7 million in revenue, with DraftKings and Resorts Casino Hotel reporting $44.1 million. BetMGM, Borgata, and Caesars made up the remaining top five.
Jason Robins, Chief Executive Officer and Co-Founder of DraftKings, recently admitted that the company is open to accepting crypto as a form of payment in the future. “It’s certainly something we’re looking at. It’s not entirely a product roadmap question,” he said on the company’s fourth-quarter earnings call.
The comments come after President Donald Trump’s administration has hinted at crypto deregulation. Without a federal framework, individual states will ultimately regulate, as has been the case with gambling legalization.
Robins emphasized it’s not likely to happen anytime soon, commenting: “It’s also getting regulators comfortable with it because regulators typically are cautious around crypto in the states.”
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