New Jersey is finally poised to overtake Nevada as the sports betting capital of the US according to analyst PlayNJ.com. The prediction follows a month of milestones and a new record handle that topped $50m at the state’s online and retail sportsbooks.
In total they generated $540.1m in bets, up 71.3% from $385.3m in January 2019. In December 2019, sportsbooks generated $557.8m in bets. Basketball generated $177.5m, or 32.9% of the state’s January handle, overtaking football as New Jersey’s top draw.
Nevada has topped New Jersey in monthly handle since the kickoff of the NFL season. But New Jersey is now tracking ahead of Nevada, which generated $497.5m in January 2019
“New Jersey could very well top Nevada, not just in January, but for the foreseeable future,” said Dustin Gouker, lead analyst for PlayNJ.com. “And assuming that happens, we could be seeing the beginning of New Jersey’s more permanent place as the top market in the country.”
He added: “While still the most popular sport in New Jersey, football does not quite command the same share of the sports betting market as it does in Nevada,” Gouker said. “Meanwhile, basketball has proven to be a big winner for the state. That puts New Jersey in prime position over the next few months in its race to become the country’s largest legal sports betting jurisdiction.”
January’s handle yielded a record $53.6m in revenue, up 285% from $18.8m won in January 2019. January resulted in $6.6m in tax revenue for the state. During the month New Jersey reached three impressive milestones: $6bn in bets ($6.4bn), $400m in revenue ($447.1m), and $50m in sports betting taxes ($53.4m) since the industry launched in June 2018.
Online betting remains the key vehicle for growth, generating $471.1m, or 87.2% of the state’s January handle. In addition, new betting opportunities could help grow New Jersey’s market in February, including online-conducive Super Bowl prop bets, Oscars betting, and initial interest in the XFL.
“New Jersey has been on the leading edge since the sports betting market first launched in 2018,” said Eric Ramsey, analyst for PlayNJ.com. “No market has been as innovative, and that is a significant contributor to the rapid maturity of New Jersey’s sports betting industry.”
FanDuel Sportsbook/PointsBet topped the online market once again with $22.2m in gross revenue, up from $12.1m in December. FanDuel Sportsbook at The Meadowlands led retail books with $4.3m in gross revenue.