Parlays helped boost sportsbook revenues in July as NJ sports betting handle dropped below $600 million for the first time in a year.
A thin sports schedule resulted in $578.7 million in bets during the month, according to a state report Monday. That is a 25% month-over-month drop for sports betting in New Jersey.
It is the first time since July 2020 that NJ sports betting dipped below $600 million. That month, the COVID-19 pandemic limited handle to $315.1 million. In August 2020, handle jumped to $668 million.
Yet even that low-water mark still ranks nationally among the top-grossing months for any state in the legal US sports betting era.
Hold stays steady in New Jersey
Sportsbooks brought in nearly $55 million in revenue, a 9.5% hold. The revenue resulted in $8.3 million in taxes.
Despite the large drop in handle from June, the hold remained fairly steady. June’s $71.3 million in revenue was good for a 9.3% hold.
Seven months into the year, NJ sportsbooks have generated $423.3 million in revenue on $5.5 billion in wagers.
Parlays keep revenue flowing
Parlays accounted for $134.1 million, or more than 23%, of July bets in New Jersey.
On those bets, sportsbooks had a stellar win rate of 24%, generating $32.3 million in revenue.
Year-to-date, New Jersey sportsbooks hold an 18.5% win rate on parlays.
FanDuel stays atop in NJ sports betting
The Meadowlands license, FanDuel‘s partner in the state, accounted for $31.7 million, or nearly 58%, of the state’s sports betting revenue in July. Of that revenue, $29.5 million came from online bets. PointsBet and SuperBook USA share the license but account for a fraction of what FanDuel takes in.
The Resorts Digital license, which includes DraftKings, contributed $10.6 million, or 19%, to the revenue count.
|License||Online Sportsbook Partners||Sports Betting Revenue||Percent of July Revenue in New Jersey|
|Meadowlands||FanDuel, PointsBet||$31.7 million||58%|
|Resorts Digital||DraftKings, Fox Bet, Resorts||$10.6 million||19%|
|Borgata||BetMGM, Borgata Sports||$6.3 million||11%|
|Monmouth Park||William Hill, SugarHouse, theScore||$2.4 million||4%|
|Ocean Casino||William Hill, Tipico||$1.6 million||3%|
|Hard Rock||Hard Rock, bet365, Unibet||$1.1 million||2%|
|Caesars Interactive||Caesars, 888, WynnBet||$347,552||<1|
|GNOG||Golden Nugget, TwinSpires||$79,223||<1|
More than 91% of New Jersey bets were placed via mobile or online.
New Jersey sports betting future?
The NFL betting season is starting to heat up, so the summer slowdown is likely short-lived. New Jersey will likely continue to lead US sports betting markets in handle as the 2021 sports schedule ramps back up.
With New York sports betting continuing its journey toward mobile wagering, it will be interesting to watch the effect on New Jersey’s handle. However, Meadowlands owner Jeff Gural recently told LSR he expects little impact to the NJ market.
New Jersey’s all-time record handle was $996.3 million in December 2020.