The First Month Of New Jersey Sports Betting: $16 Million In Wagers, $3.5 Million In Revenue

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NJ sports betting revenue

New Jersey bettors wagered $16.4 million through the first 17 days of legal NJ sports betting. Sportsbooks recorded just less than $3.5 million in total revenue.

Reported revenue includes futures bets which have not yet been paid out, such as those on the World Cup. It also includes any winning tickets not redeemed by June 30. Those bets total about $2.25 million.

Removing those bets, books cleared about $1.2 million in clean revenue for the period, holding 7.8 percent of settled wagers.

Those figures come from the Division of Gaming Enforcement, which released its monthly report on Thursday afternoon. The sports betting data covers the period between the June 14 launch and the end of the month.

NJ sports betting data

Quick reminder on handle vs. revenue: The term “handle” represents the total sum of all wagers placed. “Revenue” is what’s left over after sportsbooks pay out the winning tickets — the gross profit.

NJ data is separated by operator, of which there are currently three. The revenue numbers break down like this, bearing in mind that the Ocean Resort Casino just opened on June 28:

Betting handle is also itemized by sport and type:

Land-based sports betting revenue is taxed at a rate of 8.5 percent, so the state of New Jersey earned just less than $300,000 across the reporting period. Projections vary, but some lawmakers expect to realize annual tax revenue approaching $100 million.

If we extrapolated the NJ sports betting numbers across a 30-day month, they’d look like this:

The reporting method makes direct comparison a little tricky, but you can see the recent data from other states here:

Monmouth Park setting the pace

Monmouth Park took in close to $2.3 million, pretty much doubling the total from the other two properties combined. The track accounted for almost a third of all NJ sports betting revenue for the period.

Betting handle is not broken down by operator, but the Asbury Park Press reports $8,176,212 in total wagers at Monmouth Park.

That seems strong, especially when you consider geography. This is no knock to the venue, but Monmouth Park’s location in Oceanport keeps it a bit isolated. It’s a horse racing venue — not a casino — so it’s not open around the clock, and traffic tends to comes in spurts.

William Hill US operates the sportsbook at Monmouth Park, and CEO Joe Asher is pleased with the numbers.

While it’s still early, we’re obviously off to a great start. We always knew there was a big appetite for legal sports betting during the years of litigation, and now it is being proven. We are proud to be creating new jobs in New Jersey and bringing excitement to our customers. We can’t wait until football season.

Borgata, on the other hand, is one of the jewels in the Atlantic City casino empire. The Marina District property was the freshest in town until Hard Rock and the ORC opened. Historically, it is by far the highest-earning casino in the state, so you’d expect a strong performance from its sportsbook.

A million bucks in sports betting revenue is nothing to laugh at, but Borgata should be a little concerned about the competition it’s about to face.

Growth in the short-term forecast

Each of the nine NJ casinos can apply for a sports betting license, as can the state’s three horse racing tracks. Only the properties listed have rolled out so far, but at least one more will be taking bets shortly.

FanDuel, the transitioning daily fantasy sports site now owned by Paddy Power Betfair, will use Meadowlands Racetrack as its springboard into the new vertical. The first-ever FanDuel Sportsbook opens this Saturday.

Hard Rock, Resorts and the Golden Nugget have also divulged plans to open books, and at least one of the three Caesars properties will likely do the same at some point.

What’s more, operators are now permitted to start accepting bets through online and mobile channels. Remote betting should drive the majority of revenue once the market matures, and bookmakers are lining up to participate.

Count DraftKings among them. The other DFS heavyweight recently entered into a partnership with Resorts to launch an online/mobile version of its DraftKings Sportsbook. Unlike FanDuel, it likely won’t have its branding on the brick-and-mortar location.

Read about the other partnerships here.

This is all very good news for the state’s bank account. Once online/mobile betting begins, New Jersey will tax those wagers at an increased rate of 14.25 percent.