New Jersey set to pass Nevada in sports bets
Don’t know what to think about this. Sure, it’s great that NJ businesses (casinos) and the state (via tax revenue) gets more money. But where does that money come from? The pockets of residents, as always. Yes, you can say it’s fun, and a form of (voluntary) entertainment. But in general, professional sports offer nothing else in return. There are more enriching and affordable ways to be entertained or to “pass the time.”
NJ set to pass Nevada as state nears $3 billion in sports bets in first year
New Jersey’s retail and online sportsbooks have generated nearly $3 billion in bets and nearly $200 million in revenue in the 12 months since legal sports betting officially launched in June 2018. And by collecting $318.9 million in May bets, New Jersey appears poised to surpass Nevada in monthly handle for the first time, according to analysts for PlayNJ.com.
“We knew that sports betting in New Jersey would be successful, but it is fair to say that so far it has exceeded our expectations,” said Dustin Gouker, lead sports betting analyst for PlayNJ.com. “$3 billion in bets in 12 months is an impressive milestone by any measure, and in just a year, New Jersey is set up to become the nation’s largest legal sports betting market.”
Buoyed by baseball and the NBA playoffs, New Jersey’s online and retail sportsbooks accepted $318.9 million in bets in April, up 1.7% from $313.7 million in April, according to official reporting released Wednesday. New Jersey’s online and retail sportsbooks have now accepted $2.9 billion in bets in the 12 months since launch.
The monthly handle has put Nevada in New Jersey’s sights as the country’s largest sports betting market, at least for May. The Silver State — which will not release its May data until later this month — generated a near-record $315.5 million handle in May 2018.
“If this is indeed the month that New Jersey overtakes Nevada for the first time, it will be a momentous occasion for the Garden State,” Gouker said. “New Jersey sports bettors appear to have a stronger preference for basketball and baseball than Nevada, so it makes sense that May would be a likely month for it to happen. But clearly the state is on its way to becoming the largest legal sports jurisdiction in the country.”
The May handle generated $15.5 million in revenue, down 26.8% from $21.2 million in April. New Jersey sportsbooks have now generated a win of $194.1 million since launch, generating $22.6 million in tax revenue for the state.
New Jersey sports bettors continue to overwhelmingly prefer online sports betting, which accounted for $263.6 million, or 82.6%, of May’s handle. The state’s retail sportsbooks made up the remainder.
FanDuel Sportsbook/PointsBet and Resorts/DraftKings represented 87% of the state’s online gross revenue in May. FanDuel generated $7.9 million in online gross revenue, down from $8.8 million in May. Rival DraftKings — which represents the vast majority of Resorts’ online revenue — fueled Resorts’ $4.1 million May, down from $4.8 million in April. The online market leaders were followed by:
- Monmouth/William Hill/Sugarhouse ($817,499, down from $1.8 million in April)
- Ocean Resort/William Hill ($625,785, down from $874,737)
- Caesars Sportsbook/888sport ($235,674, down from $270,782)
- playMGM/Borgata ($119,054, up from -$24,697)
- Tropicana/William Hill ($8,583, up from -$20,279)
- Golden Nugget/BetAmerica (-$16,957, down from $39,392)
- Hard Rock (-$39,064, down from $81,613)
FanDuel Sportsbook at The Meadowlands continues to lead the retail market. FanDuel posted $796,469 in May gross revenue, down from $3.3 million in April. FanDuel was followed in gross revenue by:
- Monmouth Park ($537,593, down from $761,316 in April)
- Hard Rock AC ($135,167, up from $49,137)
- Bally’s AC ($119,583, up from $80,581)
- Tropicana Casino ($97,471, up from $97,247)
- Harrah’s AC ($67,115, down from $73,542)
- Borgata ($50,768, up from $49,457)
- Golden Nugget ($46,688, up from -$176)
- Resorts AC (-$12,138, down from $245,717)
- Ocean Resorts (-$21,891, up from -$37,007)
“The sportsbooks branded by the daily fantasy sports giants continue to dominate the sportsbooks tied to Atlantic City-based casinos,” Gouker said. “Part of that is the brand recognition of FanDuel and DraftKings. But the proximity of FanDuel Sportsbook to New York City is also a significant factor to its dominance, particularly on the retail side.”
Online Gambling Continues Hot Streak
New Jersey’s online casino and poker industry generated $38.3 million in gross revenue, up 36.5% from $24.3 million gained in May 2018 and just short of the $39.1 million record set in March.
Recent news has been all positive so far this year for New Jersey’s online gambling and poker industry. Revenue for the first five months of 2019 has grown 34.9%, to $179.4 million, compared with $116.9 million generated during the first five months of 2018.
New Jersey’s online gambling market was also among the beneficiaries of New Hampshire’s winning lawsuit this week. A judge ruled that the Wire Act does not apply to online gambling in states where it is already regulated.
“The federal ruling that the Wire Act does not apply to legal online gambling was a huge win for New Jersey,” said Steve Ruddock, lead online gambling analyst for PlayNJ.com. “The ruling ensures that strong growth should continue for the industry, which has already received a significant boost by the launch of legal online sports betting.”
Some other important online casino and poker data from the May report:
- Online casinos generated $6.7 million in tax revenue in May and has now injected $210 million into government coffers since launch in November 2013.
- The industry generated $1.2 million per day during the 31 days of May, even with the $1.2 million per day in the 30 days of April.
- The Golden Nugget — home to the Golden Nugget, Betfair, and SugarHouse online casino brands —dominance of the online gambling market extended into May. It generated $14.1 million in May, up from $13.9 million in April. Resorts Digital remained second with $7.97 million in May, up from $7.1 million in April.
- Online casino games generated $36.5 million in May, up from $34.9 million in April. Online poker hit $1.8 million in May, up from $1.7 million in April.
For more information and analysis on regulated New Jersey sports betting and online gaming and sports betting in New Jersey, visit PlayNJ.com.
About the PlayUSA.com Network:
The PlayUSA.com Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states, PlayUSA.com and its state-focused branches (including PlayNJ.com and PlayPennsylvania.com) produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, the PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.