HomePublicationsCurrent NewsletterVolume 26Issue 40IGAMING AND SPORTS BETTING REVENUES MAKE UP FOR CASINO LOSSES IN 2020

While casinos throughout the country were closed for several months due to the coronavirus pandemic and are now operating under restrictions, iGaming and sports betting have continued to generate needed revenue. States such as New Jersey and Iowa have seen record iGaming and sports betting revenue and significant increases from 2019.

The New Jersey Division of Gaming Enforcement (DGE) released the September 2020 gaming revenue report this week, boasting significant iGaming revenue increases year-over-year. Total gaming revenue for September was $323.3 million compared with $303.5 million in September 2019, reflecting a 6.5% increase. Internet gaming win was reported at $87.6 million, up 113% from $41.1 million in September 2019. Sports wagering gross revenue reported $45.1 million during September, while casino win was $190.6 million, down 15.1% year-over-year. New Jersey’s casinos are still operating under COVID-19 restrictions.

Year-to-date, the total gaming industry revenue was $1.941 billion, compared with $2.581 billion in 2019, reflecting a decrease of 24.8%. Internet gaming win has increased 102.2% to $685.6 million, while sports wagering gross revenue is $223.1 million year-to-date. Casino win year-to-date is not comparable to 2019 revenue due to the COVID-19 pandemic and the resulting casino closures and operating restrictions.

“For the sixth month in a row, internet gaming win more than doubled compared to last year,” said Casino Control Commission Chairman James Plousis, quoted in an article by The Press of Atlantic City. “Casino gaming taxes grew more than 16% compared to last September, providing needed funds for programs that aid New Jersey’s senior citizens and disabled residents. These results were promising in the midst of continuing travel advisories that decrease visits from out of state, as well as restrictions on capacity, amenities and entertainment that have made 2020 not reasonably comparable to last year.”

Total gaming taxes for September were $32.0 million. New Jersey total gaming taxes reflect 8% of taxable casino gross revenue, 15% of internet gaming gross revenue, 8.5% tax on casino and racetrack sports wagering gross revenue, and 13% tax on casino and racetrack sports wagering internet gross revenue. The casino industry incurred $4.7 million in 1.25% additional tax on sports wagering gross revenue and investment alternative tax obligations during September. Additionally, the Racetrack Economic Development Tax of 1.25% of racetrack sports wagering gross revenue was $395,794.

In Iowa, September’s sports betting handle was $72.4 million, a record for the State. Bets on college and professional football, professional baseball, basketball, hockey, NASCAR, soccer, and horse racing events occurring unusually at the same time helped to reach the new record.

“It’s been kind of a perfect storm in terms of what people have to wager on, what games are being played – there’s just a large buffet of games that you’re able to wager on at different times of day and different types of sports so it really lends itself very positively to the Iowa sports betting market,” said Max Bichsel, Vice President of U.S. Business for the Gambling.com Group, as quoted in an article by the Globe Gazette.

Net receipts from sports betting during September were $5.1 million on wagering of $50 million over mobile apps, and $22.4 million placed at brick-and-mortar sportsbooks. During the first quarter of fiscal year 2021, patrons have placed $145.6 million in wagers that paid out $135.2 million in winnings. The $10.4 million in first quarter net receipts generated just over $700,000 in tax revenue for the State of Iowa.

Casino gaming in Iowa is down 4% from 2019, and have generated $65.7 million in tax revenue during the first quarter of fiscal year 2021.

 

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