New Jersey sports betting, which narrowly missed the $1 billion mark in handle for the second consecutive month, was consoled by nearly a 25% increase month-over-month in revenue to set another national record of $82.6 million. The previous revenue record was $66.4 million recorded in December 2020. Last month’s record revenue is also a 54% increase from what NJ sportsbooks generated in January 2020. The record-high revenue was facilitated by a friendly hold rate, enabling operators to keep 8.6% of all bets.
According to the report released by the New Jersey Division of Gaming Enforcement (DGE), the Garden State’s total sports betting handle for January was $958.7 million. This represents a decrease of 4% from the biggest monthly handle of $996.3 million achieved in December 2020, which tops the handle of any US state ever. Last month’s handle was also a 77.5% jump from January 2020, which brought in $540.11 million.
Despite a comparatively low handle from its own standards, New Jersey sports betting appears to retain its market-leading position in the nation.
Online Sports Betting Rules NJ Market
Similar to past months’ trends, the lion’s share of the New Jersey sports betting market came from the 19 authorized betting apps. According to figures released by DGE Wednesday, $886.7 million or 92.5% of the total monthly handle was wagered online in January.
The increased digital trends and ever-swelling handles in the Garden State are supported by two major reasons. First, due to the COVID-19-led measures that have diverted people to safer betting options through online sportsbook apps instead of visiting in-person venues. Secondly, the New Jersey numbers are inflated by nearly 25% thanks to New Yorkers, who cross the border to place legal bets on their mobile phone in New Jersey.
In 2020, more than $5.5 billion, or 92% of the $6 billion annual sports betting handle, came through online bets.
Basketball Ruled January
Interesting, it was basketball, and not football, that ruled the New Jersey sports betting trend in January. As the most popular sport among NJ bettors, basketball drew 33% of all bets with a handle of $320.27 million. Football attracted 21% of all the bets to contribute $201.77 million to the overall handle in January. Parlays accounted for 22% of all bets, while the “other” category recorded a handle of nearly $214 million.
The basketball hold was 4.8%, football was 6.2%, but as usual, the operators did great on the parlays with a hold of 20%.
The tax generated from sports betting, both retail and online wagering, was $10.36 million, with most of that coming from the 13% levy on the digital side ($9.64 million).
Which Operator Led the NJ Market?
Of New Jersey’s total sports betting revenue of $82.64 million, the Meadowlands license reported $46.8 million, making it responsible for 56% of the entire revenue recorded in January. Around $41.8 million of it came from online betting. Meadowlands Racetrack is the land-based partner of New York-based FanDuel Sportsbook and PointsBet. As expected, FanDuel is responsible for the overwhelming majority of that revenue.
Then, a distant second was Resorts Digital, which is paired with DraftKings and FOX Bet, with a 19% share, totaling $15.7 million. Understandably, the Boston-based DraftKings drew most of the revenue. The third market-leading entity was Borgata Hotel Casino & Spa which, along with its digital partner BetMGM, brought in $8.46 million for a 10% share. The Ocean Casino license remained fourth with $4.6 million, followed by Monmouth Park and its online partners, William Hill, theScore Bet, and PlaySugarHouse, which generated $3.7 million.