The NJ sports betting market continues to face questions about cannibalization from New York, and May data did not help to clarify the situation.
New Jersey sports betting handle fell 17% month-on-month to $766 million. However, sportsbooks enjoyed a very healthy 8% hold rate on that handle, helping them to $62 million in revenue. That marked a 25% increase over April, per the state report.
The high-hold month was a break from the 2022 trend, however. Through May, books accrued $269 million in revenue on 5.2% hold. That revenue figure is down 9.3% compared to 2021, while handle is up 25% in the same period.
What is driving low NJ hold?
Of course, that low hold for 2022 may not be accidental. In a recent note, analysts at Wells Fargo said the impact of New York sports betting had been masked by increased promotions in New Jersey.
Wells Fargo said either New Jersey players had enjoyed “extreme good luck” or gross gaming revenue was depressed by an increase in price boosts and specials.
Of course, it is hard to be sure because New Jersey does not report the level of promo spend in the market.
Who led NJ sports betting?
Second on the list was Resorts Digital with an 18% share and $11 million in monthly revenue. Those partner brands include DraftKings and FoxBET. It could soon include Mexican brand Caliente, after Resorts announced plans to close down its own sportsbook offering.
Podium position for Borgata, MGM
Borgata brought in the bronze with $6.4 million in revenue split between the casino’s own branded site and BetMGM. That was good for a 10% share.
No-one else in the market was above 5% share.
What drove NJ sports betting handle?
Baseball attracted the most handle in the month with $193 million.
That was ahead of parlays at $172 million, then basketball at $136 million.
As usual, parlays were the biggest earner with nearly $38 million in revenue, well more than half of the state total.