NJ Sports Betting Revenue: One Year After SCOTUS Ruling

New Jersey sports betting revenue

It’s hard to believe it has been more than a full year since the landmark Supreme Court ruling on sports betting. The landscape has changed dramatically over that time frame, and a whole lot more changes are on the horizon.

Since New Jersey was the first state to officially go all in with legalized sports betting, the state serves as an interesting case study. While the Garden State already had the infrastructure to jump in with both feet via race tracks, casinos and gambling websites, the growth over the past year has still been nothing less than remarkable.

We now have plenty of different revenue figures to analyze and examine. Are the same peaks and valleys readily apparent when it comes to New Jersey sports betting revenue? June numbers for have recently been released, so let’s take a look.

May Was a Great Month for NJ Sportsbooks

Let’s take a closer look at the numbers from the latest report from the NJ Division of Gaming Enforcement. Since the launch of sports betting in NJ, more than $2.9 billion in wagers have been placed.

That has translated into over $194 million in revenue for the sportsbooks, and over $22.6 million in tax revenue for the state. For some perspective on the growth over that span, we need to look no further than the data from June of last year.

Just three operators were ready to take bets in June of 2018, but they still managed to take in over $16.4 million in bets. More sportsbooks joined the party the following month and over the rest of the summer. By football season in September, the handle rose to over $79 million for in-person wagers and over $104 million for online wagers.

The growth stayed steady throughout football season and into March Madness. Things naturally tend to slow down as the summer months approach, but revenue stayed strong in May. All told, over $55 million was wagered on the retail side, while more than $263 million in bets were placed online for the month.

NJ Sports Betting Revenue Stays Strong for June

For the month, $273 million in wagers were placed for total revenue of $9.7 million in NJ. Total revenue is down slightly from May, which was the first month in which the state was able to eclipse Nevada on total numbers.

Online sportsbooks once again accounted for the bulk of the money, as 83 percent of all wagers were placed online. FanDuel and DraftKings were once again at the top of the charts. Between its physical sportsbook at the Meadowlands and online wagers, FanDuel posted nearly $4.4 million in revenue.

DraftKings checked in at about $2.7 million, with just $35,000 of the revenue coming from its retail location at Resorts Casino in Atlantic City. Only one other operator in the state reached the magical $1 million revenue total for June. William Hill sportsbook at Monmouth Park racetrack is number three for the month, likely bolstered by the busy horse racing season being underway.

Which NJ Sportsbook Operators Are Leading the Pack?

On the retail side, the majority of the action has been taking place at the NJ race tracks. The Meadowlands, which has a FanDuel sportsbook on site, is the clear leader. For the month of May, more than $798,000 in revenue was generated for a yearly total of over $11 million.

Next on the list is Monmouth Park, which houses a William Hill sportsbook. For the month, it was more than $538,000 in revenue for a yearly number approaching $2.6 million. For the casinos, Hard Rock was the leader for May with more than $135,000 in revenue, but Borgata has the yearly lead at greater than $772,000.

On the online side, there’s a clear number one and number two – and then everyone else. FanDuel is tops for both the month and year with over $7.8 million in revenue for May and over $42.5 million for the year-to-date. We can count company CEO Matt King among those who are impressed with the company’s performance and the potential for the market as a whole.

“New Jersey has shown how sports betting can benefit the state by setting up a competitive marketplace with retail and online operators working to better serve their customers and other states should be taking their lead from New Jersey,” he said.

“From a company standpoint, we went through a merger, opened a retail destination and started online all within months of PASPA’s repeal and a year later, we are the market leader. It has been a proud moment for all of us.”

The DraftKings Sportsbook app is number two with over $4.1 million in revenue for May and more than $26.7 million for the year. Johnny Avello, the head of digital sportsbooks for the company, recently had some high praise for the NJ market and for what the future holds.

“Overall the first year in New Jersey has been spectacular, but to be honest, I couldn’t give you enough positive adjectives to serve justice to the question,” Avello said. “The future is mind-blowing, and with eight states active and an additional seven authorized to offer sports wagering in 2019, DraftKings is positioned to capitalize on these and subsequent markets.”

Numbers in the State Are Staying Consistent

Sports betting was given the green light in NJ last June, but only a few operators were up and running last summer. By October, there were a number of sportsbooks in operation, so that makes for a fair spot to begin looking for consistent and sustained growth.

Since that point, total sports betting handle has consistently stayed above $200 million per month. The biggest spikes were seen in January and March. Naturally, that just so happens to coincide with the timing of some of the biggest events on the sporting calendar: the NFL Playoffs and March Madness.

All told, revenue has been staying strong since sports betting was introduced in the Garden State last year. There are plenty of places to play – both online and in-person – and interest doesn’t seem to be waning.

Naturally, there have been some ebbs and flows based on the sporting calendar, but it would be real tough to look at the legalization of sports betting in NJ as anything less than a rousing success. As such, it’s fair to say that the Garden State can serve as both a case study and a model to follow as additional states get on board with sports betting.

Still Waiting for a Clear Number Three in NJ

DraftKings.com was first to market in NJ on the online side, followed by FanDuel.com. SugarHouse was the third operator to go live online in the state, and whole slew of other operators have followed. The first two to launch remain at the head of the pack in terms of revenue, but the race for number three remains wide open.

Both William Hill and PlaySugarHouse have gained traction on the online side. William Hill can also be found in several brick-and-mortar locations across the state, namely at Monmouth Park, Ocean Resort Casino, and Tropicana Casino.

On the retail side, the sportsbooks at Meadowlands and Monmouth Park have been outpacing the competition in Atlantic City. The Meadowlands had over $1.6 million in revenue for June, while Monmouth Park was in excess of $500k.

Only two of the casinos surpassed $100k in revenue for the month: Ocean Resort and Golden Nugget. There are now eight sportsbooks to be found in Atlantic City, so it will be interesting to see which emerges as the preferred choices on a long-term basis.

The same can be said for the online space. Choices abound for sports bettors, but FanDuel and DraftKings still hold a commanding lead. Will that continue for the second full year of legalized sports betting in the state or will the conversation be vastly different 12 months from now? Stay tuned.

Is There Room for Anyone Else?

The Meadowlands and Monmouth Park have seen the most traffic on the brick-and-mortar side, and there’s no sign that will be changing. In Atlantic City, there are now eight physical sportsbooks competing for customers.

Hard Rock and Bally’s took the lead for the month of May, while Borgata and Resorts are tops in yearly revenue. It may be too early to say that the race for the AC crown will take place between those four casinos, but that’s where the signs are pointing right now.

On the online side, DraftKings was first to market in NJ and had a built-in advantage just from that. DraftKings led the way for much of the early going in terms of revenue, but times have changed. FanDuel was second to market, but they are now number one in terms of monthly and yearly revenue.

In fact, FanDuel’s revenue of over $7.8 million in May was nearly double DraftKing’s number of over $4.1 million. Behind those two companies, only four other operators exceeded $100k in revenue for the month: Borgata/PlayMGM, Bally’s/Caesars/888 Sport, Ocean Resort/William Hill NJ, and Monmouth/SugarHouse/William Hill.

For the year, just three operators outside of FanDuel and DraftKings have surpassed $1 million in revenue: Bally’s/Caesars/888. Ocean Resort/William Hill, and Monmouth/SugarHouse/William Hill.

While those numbers paint a bleak picture for other operators to close the gap, the bright side says the market has proven that it can support multiple operators. As sports betting interest continues to rise in the state, more users will naturally flock to the market leaders.

However, there will be other users who are looking for something different. That presents an opportunity for the other operators to race for number three in the NJ market. After all, third place isn’t so bad when we’re talking about the potential for millions of dollars in monthly revenue.

The other point to keep in mind is that other operators have taken some time before opening up on either the physical or online side. As the market continues to mature, the cream will eventually rise to the top.

The Bottom Line on NJ Sports Betting After One Year

Since sports betting was launched in NJ, over $3.2 billion in wagers have been placed in the state. That has resulted in over $203 million in revenue for the various sportsbook operators, as well as more than $23.7 million in taxes paid to the state.

Those interested in betting on sports in NJ don’t have to look too far for options. There are now 10 retail sportsbooks to be found and over a dozen mobile betting apps to choose from.

The growth has been nothing short of fascinating to watch. That doesn’t even take into account the jobs that have been created in the state as a direct result of the explosive growth of the industry.

For lawmakers unsure on whether or not they should legalize mobile betting in addition to retail sportsbooks, one look at the NJ model should make the decision a simple one. Mobile betting spurs growth and revenue at a rate completely unmatched by retail sportsbooks alone.

Where The NJ Sports Betting Market Goes from Here

If we look at NJ as a test case for the potential growth of sports betting in the United States as a whole, then the sky is really the limit. The growth in the Garden State has been phenomenal, and it shows no sign of slowing.

Football season is fast approaching, and the numbers will only climb from that point. It’ll be interesting, to say the least, to see what the numbers look like at the end of year two for sports betting in NJ.

As additional states continue to climb on board, there’s a good chance we’ll see similar growth trajectories on their sports betting revenue numbers, not to mention the tax dollars they’ll be able to collect on as a result. One year later, early returns suggest that the Supreme Court ruling has been a home run for both the sports betting industry and the states themselves.

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