Communicated Content- New Jersey is the premier destination to gamble on professional and college sports, beating even the gambling Mecca that is Las Vegas, Nevada. New Jersey’s sportsbooks have recorded record figures for six consecutive months and are edging closer to becoming the first U.S. state to accept $1 billion of wagers in a single month.
Legal New Jersey sports betting sites are reaping the rewards right now, business is booming and showing zero signs of slowing down. The Garden State’s sportsbooks took more than $6 billion worth of bets during 2020 and earned $398.5 million profit. Those same companies generated $65.1 million in state and local taxes.
Record Revenue in January 2021
New Jersey sportsbooks took $996.3 million worth of wagers in December 2020, narrowly missing out on the magic $1 billion figure. Compare this astronomical figure to the $557.8 million bets in December 2019 and you can see why operators around the United States are keen to launch their own gambling products.
January 2021 was another stellar month for New Jersey’s operators. Total money wagered fell 4% to $958.7 million compared to December 2020, but the state recorded its best-ever revenue of $82.6 million, a 24% increase month-on-month and an impressive 54% increase compared to January 2020. This equates to an 8.6% win-rate for operators.
Record betting on the Super Bowl helped January’s figures. Punters spent $117 million on Super Bowl bets, 116% more than last year. The fact hot favourites Kansas City Chiefs fell to an unexpected defeat at the hands of the Tampa Bay Buccaneers helped New Jersey’s sports betting companies rake in dollars.
Interestingly, football was only the second most popular sport to bet on in New Jersey with 21% of wagers going on NFL matches. NBA betting accounted for 33% of all wagers.
Parlay bets give punters the chance to win big for a small investment, but these higher-risk bets went in favor of the bookmakers in January 2021. Parlay bets accounted for 22% of all placed bets, but they had a 20% hold rate for the gambling operators.
FanDuel Still King in New Jersey
The New Jersey sports betting market is dominated by The Meadowlands currently. FanDuel Sportsbook and PointsBet are two partners on the Meadowlands license and they now enjoy a 56% market share, with FanDuel accounting for the vast majority of the revenue.
Resorts Digital’s decision to partner with FOX Bet and DraftKings Sportsbook has paid off, although they are in a distant second with a 19% market share in January 2021. Borgata and BetMGM occupy third-place with a 10% share.
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What Will Happen When New York Opens For Sports Betting?
Analysts believe New Jersey’s country-leading figures are boosted by up to 25% thanks to New York residents crossing the border to place wagers on their phones. New Yorkers may not have to make that trip soon as Governor Andrew Cuomo is in the process of adding sports betting to his 2021 policy proposals.
It is no secret that Cuomo is opposed to mobile wagering, but he also knows that New York has huge potential when it comes to sports betting. In a climate where the COVID-19 pandemic has decimated economies, states need to think outside the box to recoup some of their eye-boggling losses from the past 12-months.
This boosting of the economy is something New Jersey’s Gov. Phil Murphy (D) eluded to last month when the state revealed its latest gaming figures.
“New jersey’s sports wagering handle and revenue for 2020 were the highest in the nation. We are the nation’s premier sports betting destination, boosting our economy at a critical moment.”
Even without the inflated figures from New York bettors, New Jersey would still be number one in terms of sports betting revenue. There is a new American gambling haven and it is now on the East Coast of New Jersey.
