New Jersey managed to set a new sports betting handle record in January, as it registered nearly $1.35bn in bets, according to PlayNJ, which tracks gaming developments in the state.
The Garden State’s sportsbooks were able to set the new record despite the fact neighboring New York launched its mobile sports betting earlier in the month. The state’s online casinos reported another record month as well, demonstrating New Jersey’s ability to compete in a competitive gaming landscape.
David Danzis, an analyst for PlayNJ.com, commented: “Sportsbooks have dealt with neighbors legalizing mobile sports betting before and continued to thrive, and it will take a few months before we know for certain the true impact of New York.
“But January’s results are certainly encouraging, showing that New Jersey’s gaming industry can weather New York’s expansion.”
According to official reports, New Jersey’s sportsbooks handled nearly $1.35bn in wagers in January, a 10% improvement on December’s $1.2bn. Betting volume saw a 40.7% increase year-over-year as well from January 2021’s $958.7m.
The nearly $1.35bn generated was also enough to top the previous state record of $1.3bn in betting set in October, which was the US high before New York’s debut.
The state’s sportsbooks won $60.2m in gross revenue, down 27% YoY (January 2021: $82.4m), but up 2% from the previous month (December: $59.0m), injecting $9.3m into state and local coffers.
An extra week of the NFL regular season, the expanded NFL playoffs, and college football’s national championship game helped the Garden State’s sportsbooks achieve a new record in January.
However, despite the extra football, it was basketball that led the way in betting action during the month with $553.7m in wagers. Football only came in at $340.3m, down from December’s $398.8m.
“With the expanded NFL schedule and a favorable calendar, most states will set a sports betting record in January. But only New Jersey saw their most important feeder market turn into competition,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayNJ.com.
“Ultimately, having such a busy sports calendar in January did seem to help soften the impact of New York’s launch.”
Online sportsbooks recorded $1.2bn (89.7%) of the state’s handle in January. FanDuel/PointsBet/SuperBook topped the online market with $35.5m in gross revenue, up from December’s $27.6m. DraftKings/Fox Bet/Resorts followed with $10.2m.
Retail sportsbooks registered $139.2m in wagers, with Meadowlands/FanDuel leading the market with $2.9m, ahead of Resort AC‘s $272,773.
Danzis added: “No retail operator in New Jersey will be impacted more by New York’s sports betting expansion more than FanDuel’s Meadowlands sportsbook.
“FanDuel has dominated both the online and retail markets since the beginning, in part, because of its close proximity to New York City. For the first time since New Jersey launched sports betting, FanDuel’s market supremacy in the state is threatened.”
New Jersey’s online casinos and poker also managed to set a new record in January with $137.8m in revenue, a 32.8% growth YoY (January 2021: $103.7m). The previous best revenue of $133.2m was set last December.
Revenue from online casinos and poker rooms rose to a record $4.4m per day over the 31 days of the month (December: $4.3m per day), yielding $24.1m in state and local taxes.
Ramsey concluded: “The momentum for online casinos will remain a stalwart for New Jersey’s gaming industry no matter how much sports betting expands in New York. Revenue from online casinos has never been more important for the state’s tax collection.”