Did New Jersey Sports Betting Market Stagnate In August?

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NJ sports betting stagnate

The summer swoon is in the rear-view mirror and New Jersey sports betting is ramping up for Fall.

New Jersey sports betting handle climbed 15% month-on-month in August to $665 million, per the state report

 That growth rate was in the middle of other states that have reported so far. Iowa was up 22% month-on-month and Indiana up 11%.

Is there a slowdown in New Jersey sports betting?

However, NJ sports betting revenues were actually down 5% month-on-month to $52 million, as hold rate normalized from 9.5% last month to 7.8%.

The handle number was also flat year-on-year. That does not necessarily mean the market is stagnating, however. 

For one, August 2020 had a full slate of NBA games thanks to the COVID-disrupted season.

It’s also worth noting that recent geolocation data showed New Jersey sports betting grew 35% year-on year in the first four days of the NFL season.

Who led New Jersey sports betting?

The Meadowlands license, FanDuel’s partner in the state, continued to dominate with more than half of all revenues at $26.9 million.

PointsBet and SuperBook USA also share the license.

The Resorts Digital license, which includes DraftKings, contributed $13 million to the revenue count. That was good for a 25% share, up from 19% last month. 

The Borgata license, including BetMGM, came in third with a 9% share of revenue. 

What did New Jersey bet on?

Parlays accounted for $19.2 million in revenue and continue to be a boon for the books. For the year, parlays have a 17.3% hold rate.

Baseball contributed around $8.7 million, with ‘other’ sports generating $6.4 million.

Much of the remaining revenue was from ungraded football bets.

Mobile wagering made up 92% of revenue, while operators paid around $7.9 million in taxes.

Calm before storm of football

August, of course, marks the calm before the storm as NFL betting returns in September.

New Jersey’s all-time record handle was $996.3 million in December 2020. That could be in jeopardy next month.

That said, with New York sports betting continuing its journey toward mobile wagering, it will be interesting to watch the effect on New Jersey’s handle. Meadowlands owner Jeff Gural recently told LSR he expects little impact to the NJ market.