New Jersey Sportsbooks Set New National Revenue Record

Kessler Edwards #14 and Cam Thomas #24 of the Brooklyn Nets defend. Sarah Stier/Getty Images/AFP.

New Jersey sportsbooks broke their own record by earning revenue of $114.8 million in November.

That smashed the existing record of $84.2 million, which was set in the Garden State during the previous month. It also represented a 127.1% increase in the revenue that New Jersey sportsbooks earned in November 2020.

It was the first time a state has ever eclipsed $100 million in monthly revenue.

The state’s sports betting operators handled $1.26 billion worth of wagers in November. That was marginally short of the record of $1.3 billion that they achieved in October, but it was a tough month for bettors, as the hold increased to 9%.

That generated $17.3 million in state and local taxes.

Sportsbooks Break Through the $1.5bn Barrier

It means that New Jersey sportsbooks have handled $20.9 billion worth of wagers and generated $1.55 billion in revenue since the industry began in 2018.

In the last three months alone, they have taken $3.6 billion in wagers and held a revenue of $281.4 million.

That leaves it comfortably ahead of Nevada, Illinois, and Pennsylvania as the largest state for sports betting.

That could all change when neighboring New York rolls out its legal sports wagering industry – depriving New Jersey of a steady stream of visiting bettors – but for now, the Garden State reigns supreme.

The NFL season has driven a sharp increase over the past three months, but basketball has attracted the most wagers so far this year. Bettors in the Garden State have wagered $2.3 billion on basketball, compared to $1.6 billion on football. Baseball is next, with $1.3 billion in wagers this year.

Online Wagering Dominates

Online sports wagers reached $1.1 billion in November, which represented 90.9% of the state’s handle.

The master license at the Meadowlands continued its dominance, accounting for $59 million in gross revenue – more than half of the revenue generated in the entire state. The Meadowlands hosts two online sports betting operators – FanDuel and PointsBet – but the bulk of that would have gone to market leader FanDuel.

The Resorts master license, which hosts DraftKings and its eponymous online sportsbook, was a distant second with $22 million in revenue, followed by BetMGM.

New Jersey now has a mature and competitive sports betting market, with lots of high-quality operators competing with one another by offering large bonuses and attractive lines.

Yet betting on in-state college teams is still not possible after voters rejected a measure that would expand the state’s industry in November.

“One potential concern with lifting the ban may have been that college athletes would feel more pressure and/or face more scrutiny on social media because of the added attention and money involved,” said Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, in an AP interview. “This is something that professional athletes have faced, with some questioning whether sports betting was a contributing factor.”

The land-based industry in New Jersey also had a strong month in November, with revenue up 41.2% year-on-year to $206.9 million. However, that was 12.9% lower than the $237.5 million taken in October.

Online casino gaming also dipped 7.1.% month-on-month, falling from a record $127 million in October to $118 million in November, bit it was still up 28.5% year-on-year.

Total gambling revenue in New Jersey for the entire year now stands at $4.33 billion, which is an increase of 68.7% on 2020.