Operator News

US – New Jersey sports books set new revenue records in January

By Phil - 19 February 2021

New Jersey sportsbooks took in more than $950m in wagers and a record $82.6m in revenue in January while the state’s online casinos crossed $100m in revenue, becoming the first legal gaming jurisdiction in US history to cross that threshold in a single month.

The Garden State’s opening salvo to 2021 sets the stage for a year in which the state could reach $10 billion in sports wagers and more than $1bn in online casino revenue, according to analysts from PlayNJ.

“New Jersey’s online casinos and sportsbooks have defied conventional wisdom from the beginning, and are hitting milestones that many thought would take years longer to reach,” said Dustin Gouker, lead analyst for PlayNJ.com. “The rapid maturation of the online products in New Jersey has made the state the new standard bearer for the modern US gaming industry.”

New Jersey’s sportsbooks fell short of breaking the all-jurisdiction handle record for the sixth consecutive month by collecting $958.7m in wagers in January, according to official data released Wednesday. That is up 77.5 per cent from $540.1m in January 2020.

Operator revenue rose to $82.6m in January, up 29 per cent from $53.6m in January 2020 and topping December’s record-breaking $66.4m. And with $10.4m in state taxes in January, sportsbooks have now generated $107.3m for the state since launching in June 2018.

For 2021, the state could reach nearly $10bn in sports bets, more than $600m in revenue, and $75m in state and local taxes, according to PlayNJ projections.

“2020 was an unusual year, obviously, so year-over-year growth is a good bet so long as the sports schedule remains intact,” said Eric Ramsey, analyst for PlayNJ.com. “Considering the current momentum of New Jersey’s market, the year could really bring some eye-popping results, especially if the retail market can return to health.”

Online betting generated 92.5 per cent of the state’s January handle. FanDuel Sportsbook/PointsBet was again the market leader with $41.8m in gross revenue, up from $29 million in December.

Retail sportsbooks began to rebound with $72.1m in bets, up from $67m in December.

Basketball drew $320.3m, topping sports categorised as “other,” which includes NHL betting, which hit $214.4m. Football was third with $201.8 million.

“With the NHL back in action and the NBA with a full schedule, January’s sports schedule was more or less normal for the first time since February 2020,” Mr. Gouker said. “That gives us a reliable barometer for where New Jersey is as a sports betting market.”

New Jersey’s online casinos hit $100m in combined casino games and poker revenue for the first time. In all, online gaming and poker generated $103.8m in January, up 88.4 per cent from $55.1m in January 2020 and topping the previous record of $99.5m set in December. January’s win yielded $15.5m in state taxes.

“Online casino games continue to show no signs of letting up,” Mr. Ramsey said. “Obviously with pandemic-related restrictions in place on Atlantic City casinos, online casinos were in position to pick up some slack. But the online gains made over the last year should withstand the reopening of retail casinos, continuing to buoy the entire gaming industry.”