(ATLANTIC CITY, N.J.) — New Jersey’s online and retail sportsbooks set a new high in wagers in October while blowing past the $500 million mark in wagers since sports betting was legalized in June. This as the early winners of the fledgling industry continue to make gains, according to analysts for PlayNJ.com.
“Two full months of the football season is showing us how the market is beginning to mature,” said Dustin Gouker, lead sports betting analyst for PlayNJ.com. “FanDuel Sportsbook is dominating the retail market and DraftKings continues to be the strength of the online market. In addition, we continue to see locals flock to online sportsbooks.”
New Jersey's online sportsbooks accounted for 67 percent of total bets in October, with retail sportsbooks making up the remaining 33 percent. That compares to 57 percent of total bets flowing through online sportsbooks and 43 percent through retail in September.
Overall, New Jersey’s sportsbooks accepted $260.7 million in October wagers — also known as handle — which was up 42 percent from $183.9 million in September, according to official reporting released Thursday. New Jersey’s $11.7 million in October gross revenue was down 51 percent from $23.96 million in gross revenue sportsbooks gained in September.
“We know that revenue can fluctuate greatly in the sports betting industry from observing Nevada and Europe, and the new New Jersey market is no exception,” Gouker said. “World Series futures on the Boston Red Sox were paid out in October and favorites did well in the month, which is typically bad for sportsbooks. NFL futures bets in prior months could have inflated revenue, too, since they haven’t been paid out yet.”
New Jersey still has a way to go to catch Nevada, the nation’s largest sports betting market, which accepted $571 million in bets in September. But New Jersey’s preference for online sports betting mirrors the Silver State, where online betting accounts for about 55 percent of local wagers.
“New Jersey’s handle should surpass Nevada by 2019, and a key driver should be online sports betting,” Gouker said. “As New Jersey innovates its online sports betting products and more online sportsbooks prepare to enter the market, a significant preference for online betting has become evident.”
FanDuel Sportsbook at The Meadowlands remained the market leader among retail sportsbooks, posting $1.1 million in October, down 75 percent from $4.4 million in September gross revenue. FanDuel, which represented 39 percent of the retail market in October, was followed in gross revenue by:
- Monmouth Park ($606,981, down from $2.2 million)
- Ocean Resort Casino ($438,552, down from $999,858)
- Bally’s AC ($303,240, down from $394,046)
- Borgata ($120,288, down from $2.4 million in September)
- Harrah’s AC ($104,448, down from $310,766)
- Resorts AC ($97,313, down from $279,492)
- Golden Nugget ($46,109, down from $499,414)
- Tropicana Casino ($15,314 in first month)
DraftKings Sportsbook — which generates some 90 percent of Resorts online revenue — powered Resorts to $5.1 million in October gross revenue, down from $8.5 million in September. DraftKings, which represented 44 percent of the online market in October, was followed in gross revenue by:
- FanDuel Sportsbook ($2.4 million, down from $2.9 million in September)
- Monmouth/William Hill ($608,611, up from $70,785)
- Ocean Resort/William Hill ($385,641, up from 292,081)
- SugarHouse Sportsbook ($151,446, down from $619,030)
- Caesars Sportsbook and 888sport ($108,359, up from $106,463)
- playMGM/Borgata ($66,924, down from $120,938)
“Brand recognition appears to be a crucial element fueling the ascendency of DraftKings and FanDuel,” Gouker said. “But still in its infancy, the market will continue to evolve. We expect more online sportsbooks to hit the market in the next two months, and that could eat into some of the dominant players’ market share.”
LEGAL ONLINE GAMBLING NEARS $1 BILLION MILESTONE
New Jersey’s online casino and poker industry moved closer to hitting $1 billion in lifetime gross revenue by generating a record $26.7 million in October. The monthly tally was up 4 percent from the $25.7 million gathered in September and up 30 percent from the $20.6 million gained in October 2017.
October’s total broke the previous record of $25.9 million set in July. More importantly, the banner month put the industry at $965.3 million in lifetime revenue and in clear range of hitting the $1 billion mark by the end of December.
“After its slow start, few envisioned that the legal online gambling industry would reach $1 billion so quickly,” said Steve Ruddock, lead online gambling analyst for PlayNJ.com. “What's more exciting is online gambling has yet to hit its ceiling. Online casino revenue continues to climb, and the addition of online sports gambling has only added to that growth. It is safe to say at this point that the steady upward trajectory will continue at least well into next year.”
Some important online casino and poker data from the October report:
- Online casinos generated $4.7 million in October tax revenue. Online casinos have now generated $168.7 million in total tax revenue for New Jersey since launch in November 2013.
- The industry generated $863,028 per day in the 31 days in October, up from $858,415 per day in the 30 days in September.
- Market leader Golden Nugget — home to the Golden Nugget, Betfair, and SugarHouse online casino brands — generated $9.7 million in October, up from $9.3 million in September.
- Online casino games generated $25.1 million in October, up from $24.1 million in September. Online poker hit $1.7 million in October, up from $1.6 million in September.
For more information and analysis on regulated online gaming in New Jersey, visit PlayNJ.com.
About The PlayUSA Network:
The PlayUSA 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, PlayNY.com, PlayPennsylvania.com, and PlayCA.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.