New Jersey’s sportsbooks saw nearly $1bn in February wagers, but revenue took a significant knock in comparison to the previous month and year-over-year, according to PlayNJ.
The Garden State’s gaming industry showed resilience as the New York market grows next door, as wagering saw a 33% YoY gain during the month, while online casinos had another strong period.
David Danzis, an analyst for PlayNJ.com, commented: “New Jersey’s online and retail sportsbooks continue to follow the same historical seasonal patterns, showing only a modest impact from New York’s entry into the online sports betting space.
“That is a cause for relief for those that are heavily vested in the success of the state’s industry, including the state itself.”
New Jersey’s sportsbooks saw a $985.6m handle in February, down 26.9% from January’s record $1.35bn. Betting volume, meanwhile, was up 32.7% YoY (February 2021: $743.0m).
However, sportsbooks were only able to produce $30.9m in revenue during the month, a 38.6% YoY drop (February: $46.2m) and a 94.8% decrease from the previous month (January: $60.2m), yielding $4.5m into state and local taxes.
The Super Bowl drove non-parlay wagering to a state-record $143.7m, but basketball continues to lead the way, as bettors placed $503.1m in wagers on the sport over the 28 days of February (January: $553.7m).
Danzis added: “The popularity of the NBA, in particular, has always kept New Jersey’s sportsbooks relatively busy in February, even as most other legal markets suffer a post-Super Bowl hangover.
“There is a natural seasonality to sports betting. But bettors’ interest in basketball has long made the seasonal troughs less pronounced in New Jersey than most any other market.”
Online sportsbooks took $899.6m (91.3%) of the state’s February handle, led by FanDuel/PointsBet/SuperBook with $14.0m in gross revenue (January: $35.5m), while DraftKings/Fox Bet/Resorts followed with $8.6m.
Retail sportsbooks lost $1.4m on their bets, with Resorts AC on top with $451,455 in revenue, ahead of Meadowlands/FanDuel, which lost $146,166.
“With baseball now committed to a full 162-game season, sportsbooks can look forward to what appears to be the first normal sports year since 2019,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayNJ.com.
“This looked like a year where New Jersey’s sportsbooks might give some ground with increased competition in neighboring states, but those concerns are starting to fade.”
New Jersey’s online casinos and poker rooms fell short of another revenue record in February, but this was more likely due to the short month than the industry slowing down.
Online casinos and poker recorded $130.0m in February revenue, down 5.7% from the previous month (January: $137.8m), but up 38.6% YoY (February 2021: $93.8m). Average daily revenue hit a record $4.6m per day over the 28 days of February (January: $4.4m per day), yielding $22.7m in state and local taxes.
A total of $127.7m in revenue was generated by online casino games during the month, up 39.9% YoY (February 2021: $91.3m), while online poker produced $2.2m in revenue, down 10.2% YoY (February 2021: $2.5m).
Borgata led the market with $37.8m in revenue, followed by Golden Nugget ($34.6m) and Resorts Atlantic City ($29.9m). Brick-and-mortar casinos in Atlantic City won $212.4m in revenue, a 43.3% gain YoY.
“After two years of pandemic concerns and the increase in competition from New York, New Jersey’s gaming market is stabilizing,” Danzis said.
“Atlantic City casinos are rebounding, while revenue from sportsbooks and online casinos reflect the market’s ‘new normal,’ which is a really good normal. All in all, it was an excellent month for the state.”