The nascent Sports wagering business in New Jersey has had a reality check this month according to the latest revenue report from the state’s Division of Gaming Enforcement. Despite a 41 per cent increase in the handle, revenue fell dramatically by 51 per cent to $11.7m against September’s $24m take.
The fall has been attributed, in part, to the sports book win percentage which declined from 7.9 per cent in September to 5.8 per cent in October.
In terms of the current pecking order in New Jersey, DraftKings came out ahead of the pack with revenue of $5.09m in October ($8.5m September), followed by FanDuel with a $3.5m take ($7.2m September). Monmouth Park, the only other operator to break through the $1m mark earned $1.2m ($2.2m September).
Total Gaming Revenue for October was $239.1m compared to $206.4m in October 2017, reflecting a 15.8 per cent increase. Casino Win for October was $200.6m increasing eight per cent from the same month last year. Internet Gaming Win was $26.8m in October compared to $20.6m in the prior period, reflecting an increase of 30.1%.
For the year-to-date, the industry’s Total Gaming Revenue was $2.387bn for 2018 compared to $2.246 bn in 2017, reflecting an increase of 6.3 per cent. Casino Win was $2.093bn reflecting a 2.5 per cent increase over the prior period. Internet Gaming Win increased 18.9 per cent to $242.7m.
A 51 per cent fall in revenue in any sector of business would understandably give most CFOs cause to reach out for the Aspirin. September was, after all, a ‘burster’ of a month for the sports betting sector in the Garden State. But this is betting, and it’s the nature of the beast that sometimes the bets will go the way of the punter. The drop in New Jersey win percentage tells the story very succinctly. However, some context is needed here. In just four months, New Jersey’s sportsbooks have achieved a combined gross revenue of $52m. That’s $52m of new money flowing into the business and the full story has yet to emerge regarding how that influx might be positively affecting other areas of the gaming sector.