Operator News

US – New Jersey sportsbooks near $1bn in wagers

By Phil - 13 December 2018

Wagers at New Jersey’s online and retail sportsbooks rose 27 per cent in November to a massive $330.7m, and revenue rebounded from October.

New Jersey’s handle now sits at $928.1m in less than six months since legalisation, an undeniable success, according to analysts for PlayNJ.com. By comparison, the October handle in Nevada, the nation’s largest legal sports betting market, was $528m.

“New Jersey continues its march toward becoming the nation’s largest legal sports betting market,” said Dustin Gouker, lead sports betting analyst for PlayNJ.com. “The main driver is online sports betting, which now accounts for the vast majority of all bets in New Jersey. The state’s embrace of mobile betting has shown the path forward for any other state planning on legalizing and regulating sports betting.”

New Jersey’s online sportsbooks accounted for $238.6m, or 72 per cent, of total bets in November, with retail sportsbooks making up the remaining 28%, according to official reporting released Wednesday. That compares to 67% of total bets flowing through online sportsbooks in October.

Overall, November revenue recovered from a weak October. New Jersey’s $21.2m in November gross revenue nearly doubled the $11.7m October win and fell just short of the state’s high-water mark of $23.96m in September.

New Jersey could soon face some headwinds, though. Momentum to legalise mobile sports betting in New York, a primary feeder market for New Jersey, is gaining. That could chip away at New Jersey’s growth. In addition, legal online sports betting could begin in Pennsylvania by early 2019.

“New Jersey’s period of having the mobile sports betting market to itself is coming to an end,” Mr. Gouker said. “A lot of wagering takes place near the population centers in New York and Philadelphia. At this point it would be premature to estimate its effect, but New Jersey’s astronomical growth so far will no doubt slow if and when New York joins the market.”

DraftKings Sportsbook, which accounts for nearly all of Resorts’ online revenue, fuelled Resorts to $7.2m in online gross revenue, up 41 per cent from $5.1m in October. DraftKings, which represented 34 per cent of the online win in November, down from 44 per cent in October, remains the online market leader. But its market share narrowed, led by FanDuel Sportsbook ($4.4m, up from $2.4m in October), Monmouth/William Hill/SugarHouse Online Casino ($1.2m, up from $608,611, Ocean Resort Casino Online/William Hill ($915,930, up from $385,641),Caesars Sportsbook and 888 Sport ($205,046, up from $108,359) and playMGM Casino/Borgata Online Casino ($194,212, up from $66,924)

FanDuel Sportsbook at the Meadowlands Racetrack remained the market leader among retail sportsbooks, posting $2.6m in November gross revenue, up 165 per cent from $1.1m in October. FanDuel represented 42 per cent of the retail win in November. But competition is increasing, including by DraftKings, which opened a retail book inside Resorts AC in late November. FanDuel was followed in gross revenue by Ocean Resort Casino ($1.9m, up from $438,552 in October), Monmouth Park ($1.2m, up from $606,981), Borgata Hotel Casino and Spa ($877,835, up from $120,288), Resorts Casino Hotel ($158,332, up from $97,313), Golden Nugget – Atlantic City ($130,874, up from $46,109),Tropicana Atlantic City Casino & Resort ($108,751, up from $15,314),Bally’s – Atlantic City (-$26,557, down from $303,240) and Harrah’s Resort Atlantic City (-$124,260, down from $104,448)

“DraftKings’ advantage from being the first to hit the online market is slowly beginning to dissipate, and no New Jersey sportsbook will be affected more by legalization in New York than FanDuel at The Meadowlands,” Gouker said. “With the market set for change, it’s critical for operators to establish a solid foundation in terms of revenue and users now.”

Legal online gambling sets annual revenue record
New Jersey’s online casino and poker industry cruised pass the annual revenue record it set last year by generating a record monthly total of $26.9 million in November. New Jersey’s monthly total was up slightly from October, and pushed the state to $269.7 million in 2018 revenue, surpassing the $245.6 million tallied in 2017.

An even greater milestone lies just ahead. The industry has now generated $992.1 in revenue since launch in November 2013, and should surpass the $1bn mark in December.

“New Jersey has proven that online gambling is a critical component to the health of a market’s gambling industry,” said Steve Ruddock, lead online gambling analyst for PlayNJ.com. “As the industry closes in on $1bn in lifetime revenue, there’s no longer a debate: online gambling is an Atlantic City success story.”

Nowhere has online gambling meant more than at the Golden Nugget, which is home to the Golden Nugget, Betfair and SugarHouse online casino brands. By generating $9.2 m in November, down from $9.7m in October, the market leader has generated more than $250m since launch, and is on track to break $100m for the year.

Online casinos generated $4.7m in November tax revenue, injecting $173.6m into state coffers since launch.
The industry generated $898,136 per day in the 30 days in November, up from $863,028 per day in the 31 days in October.
Online casino games generated $25.4m in November, up from $25.1m in October. Online poker hit $1.6m in November, down from $1.7m.