New Jersey sportsbooks surge with another historic month

New Jersey’s sportsbooks capitalized on an unprecedented confluence of major U.S. sports to set yet another all-jurisdiction record with nearly $750 million in September. And with the record, the Garden State’s handle year-to-date has surpassed the first nine months of 2019, a remarkable trajectory considering major sports were shut down for months, according to PlayNJ.

“September was a once-in-a-lifetime moment on the sports calendar when all four major U.S. sports were playing meaningful games all at once, which was obviously a boon for sportsbooks,” said Dustin Gouker, lead analyst at PlayNJ.com. “The growth seen over the last two months will likely level off once the sports schedule returns to normal. But it’s clear New Jersey’s sports betting industry is setting a new floor.”

Wagers at New Jersey’s online and retail sportsbooks soared to $748.6 million in September, up 68% from $445.6 million in September 2019 and easily surpassing the all-jurisdiction record of $668 million set by New Jersey just last month. New Jersey sportsbooks have now collected $3.3 billion in bets through the first nine months of 2020, up from $2.96 billion through the corresponding months in 2019.

The state’s sportsbooks have now collected $9.1 billion in wagers since the industry launched in June 2018, surpassing yet another milestone.

Advertisement

September’s bets produced $45.1 million in gross operator revenue, up 14.1% from $37.9 million in September 2019. Those revenues yielded $5.6 million in state taxes.

In August, New Jersey generated nearly $200 million more than Nevada’s $474.9 million handle, and appears poised to outpace the nation’s No. 2 market significantly yet again. New Jersey’s sportsbooks took in a whopping $159.5 million in football bets in September. But bettors also placed another $208.3 million on “other” sports, a classification that includes hockey, $115.3 million on baseball, and $98.8 million on basketball.

“Bringing all the major sports together at once enabled New Jersey to show off its unique ability to attract significant action on a wide variety of sports,” Gouker said. “New Jersey is less event-driven and football commands a smaller share of the overall handle than Nevada, which is an obvious benefit under the current circumstances.”

Online bets accounted for 90.7%, or $678.7 million, of September’s handle. That was up from 90.1% in August and 84% in September 2019. FanDuel Sportsbook/PointsBet topped the market with $25.1 million in gross revenue, up from $17.6 million in August. FanDuel was followed in revenue by:

• Resorts Digital/DraftKings/Fox Bet ($4.8 million, down from $10 million in August)
• BetMGM/Borgata ($3.7 million, up from $3.3 million)
• Ocean Casino/William Hill ($2.3 million, up from $1.2 million)
• Monmouth/William Hill/Sugarhouse/TheScore ($2.3 million, up from $1.7 million)
• Hard Rock/Bet365/Unibet ($947,986, up from $530,136)
• Golden Nugget/BetAmerica ($168,391, up from $41,851)
• Tropicana/William Hill ($109,185, up from $51,948)
• Caesars Sportsbook/888sport ($244,974, up from -$41,648)

Struggling retail sportsbooks showed modest improvement, generating $69.8 million in bets, up from $66 million in August. FanDuel Sportsbook at The Meadowlands once again topped retail books with $3.1 million in revenue.

“September’s results hint at a $1 billion month someday soon, which would’ve been impossible to fathom two years ago,” said Eric Ramsey, analyst for PlayNJ.com. “As we can see with Unibet’s recent launch, online sportsbooks will continue to be where we see growth and where operators will continue to invest.”

Advertisement

Online gambling eyes $950 million for 2020

New Jersey online casinos and poker rooms continued their place as the industry’s most consistent performer in September with a near-record $87.6 million in revenue, up 113% from $41.1 million in September 2020. September’s revenue injected $13.2 million into state coffers, giving New Jersey $103 million in taxes from online casinos and poker so far this year.

Now the industry has a bigger number in sight — $950 million in annual revenue.

Through the first three quarters of 2020, online gambling has generated $685.6 million, up 102.2% from $339 million through the first nine months of 2019. The industry would have to average $88.1 million per month, only a slight uptick, over the final three months of 2020 to reach $950 million for the year.

“Nearly $1 billion in revenue is a staggering figure to think about, and every dollar has been vital in keeping New Jersey’s gaming industry afloat during a difficult year,” Ramsey said. “The growth in online revenue has begun to flatten after a spring surge, but the importance of online gambling to the overall health of the industry continues to grow.”

Advertisement

Some other highlights from September’s report:

• Online casinos and poker generated $2.9 million a day over the 30 days of September, breaking the record $2.83 million a day produced in August.
• Revenue from online casinos alone was $85.1 million, up from $84.7 million in August.
• Online casino games have now generated $2.01 million in revenue since launching in November 2013.
• Online poker produced $2.6 million in September revenue, down from $3 million in August.
• The Golden Nugget’s market dominance continued with $26 million in September, down from $27.7 million. Borgata was second with $19.8 million.

For more information and analysis on regulated sports betting and online gaming in New Jersey, visit PlayNJ.com/news.

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 produce original daily 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.