New Jersey's sports betting operators experienced a "winning face, losing substance" World Cup month in June. The total sports betting amount in the state soared to $917.2 million, not only a significant increase from the previous year by $169.172 billion and $1,657.3 million, but the hold rate plummeted to 6.24%, almost half of June 2025's 11.62%, and well below the year-to-date average of 8.9%. Consequently, the state's tax revenue shrank to $12.45 million, nearly $1.245 million less than the same period last year, and about $650,000 less. Record betting volumes and declining tax revenues—what exactly did the World Cup group stage do to operators?
The sweet trap of the World Cup's expansion to 48 teams: more bets, more winners
Analysts almost unanimously agree. This World Cup expanded to 48 teams, pouring a large amount of group stage bets from June 11, especially heavy bets on traditional strong teams. The problem is—this World Cup's group stage was full of surprises, with Brazil, Germany, England, and the Netherlands all losing points, resulting in gamblers winning and bookmakers losing. Of the total betting amount of $917.2 million, online channels accounted for $891.9 million, with the retail end contributing just $25.3 million. In other words, 97% of the chips were cast through mobile screens rather than physical windows.
However, analysts also left a note: a low hold rate is not necessarily a bad thing. A large influx of light users and returning users due to the World Cup, if retained by online casinos and other betting products after the event, could actually be more valuable to operators in the long run than a high hold rate in a single monthly report. PASA's official website had previously pointed out that the real long-term benefit of the World Cup is not during the event's GGR, but in the profit contribution curve of these new customers gradually over the 12 to 18 months after the event.
Online casinos: the real money printers with $271 million monthly revenue
While sports betting was struggling with the hold rate, New Jersey's online casinos delivered an overwhelming report card. The state's 28 active skins collectively reached a GGR of $271 million, a year-on-year increase of $175.204 million, nearly double the combined tax revenue of physical casinos and sports betting. With an online gambling tax rate of 19.75%, New Jersey's online casinos are no longer just the "fastest-growing sector" but the absolute pillar of the state's gambling finances.
The performance of various platforms has created a highly informative tier. FanDuel Casino, operating under the Golden Nugget license, firmly holds the top spot with monthly revenue of $62.5 million (+17%), closely followed by BetMGM with $35.4 million (+38.8%), and BetFanatics with $13.7 million. The market space for the remaining 20+ licenses is being systematically compressed.
The other side of Atlantic City: physical casinos slightly decline, table games drop faster than slot machines
The total gaming revenue of Atlantic City's nine physical casinos in June was $257.3 million, a slight year-on-year decrease of $7.22 million. A closer look at the structure contrasts sharply with the online sector—table game revenues overall fell by 6.4%, while slots slightly increased by 1.7%. As players can access online products increasingly similar to real-life casinos on their mobile phones, the motivation to drive to Atlantic City and sit at a physical table is gradually decreasing year by year. However, the absolute revenue volume of physical casinos is still nearly $25 million higher than online casinos, indicating that physical touchpoints still hold value in high-end customer segments and social settings—only the growth rate is clearly pointing towards the future.
As the World Cup moves into the knockout stages, analysts generally expect the hold rate to rebound in July. Historically, the knockout stages have a higher probability of upsets and more balanced matchups, making gamblers who heavily rely on accumulators more likely to lose—this supports the profit margins for bookmakers. But regardless of whether July's sports betting can turn the tide, New Jersey's June data has already clarified a structural trend: in this benchmark state for online gambling in the US, online casinos are no longer a secondary product but the ballast stone of the entire tax system. For more in-depth analysis of the gambling markets in various US states, continue to follow the PASA official website.
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This article is from "PASA-Global iGaming Leader," a gambling industry news channel: https://t.me/pasa_news
Original deep gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
