Interactive

US – FanDuel accounts for 28 per cent of New Jersey’s online sports betting

By Phil - 15 July 2019

New Jersey’s online casinos posted yet another near-record month in June while the state’s online and retail sportsbooks showed strength during a typically slow month.

In all, June’s nearly $275m handle was an impressive showing considering that the summer months are historically the slowest on the sports betting calendar.

“To approach $275m during a month where the only major sports betting event is the NBA Finals says something about the trajectory of New Jersey’s market,” said Dustin Gouker, lead sports betting analyst for PlayNJ.com. “Basketball clearly drives interest, but it also shows that interest in sports betting in general continues to expand.”

New Jersey’s sportsbooks accepted $273.2m in bets in June, down 14 per cent from $318.9m in May, according to official reporting released Friday. The handle yielded $9.7m in revenue, down 37 per cent from $15.5m in May.

June’s handle was up dramatically from $15.3m in June 2018, and revenue has nearly tripled from $3.5m in June 2018. Since launch, New Jersey sportsbooks have generated a handle of $3.2bn and a win of $203.8m. And New Jersey’s handle could surpass Nevada for the second consecutive month.

“The rate of growth will eventually level out, but I do not believe that time is at hand,” Mr. Gouker said. “The fact that New Jersey is now on par with Nevada, a market that has matured over generations, is remarkable. Competition from the launch of Pennsylvania’s sports betting apps could slow momentum, though.”

Online sports betting generated 83 per cent, $226.7m, of June’s handle, up from 82.6 per cent in May. FanDuel Sportsbook/PointsBet generated $2.7m in online gross revenue, or 28 per cent of the state’s handle, edging Resorts/DraftKings. FanDuel Sportsbook at The Meadowlands lead the retail market with $1.7m in June gross revenue.

“FanDuel has refused to loosen its grip on the New Jersey market,” Mr. Gouker said. “Other operators such as Monmouth Park and its associated online brands have shown plenty of growth, but at this point, it’s becoming difficult to see when FanDuel and DraftKings will will be seriously challenged.”

New Jersey’s online casino and poker industry generated $38.1m in June revenue. June’s revenue was up 68 per cent from $22.7m gained in June 2018 and down slightly from $38.3m in May.

The continued growth of online gambling — especially when online sports betting is factored in — shows that it could one day generate as much revenue as gambling in Atlantic City casinos. In fact, the Golden Nugget’s online casino brands — home to the Golden Nugget, Betfair, and SugarHouse online casino brands — could surpass Golden Nugget Atlantic City’s revenue before the end of the year. The Golden Nugget generated $13.6m with its online casino games in June, down from $14.1m in May. By contrast, Golden Nugget AC generated $15.8m in June.

“Golden Nugget’s ability to generate nearly 50% of its revenue through its online casino without cannibalising its brick-and-mortar operations should be a wakeup call to every state lawmaker and casino owner who still make the false assumption that such a dynamic is not possible,” said Steve Ruddock, lead online gambling analyst for PlayNJ.com. “Online and retail gambling are not simply compatible, they’re mutually beneficial.”