New Jersey sports betting market still showing healthy growth despite monthly drop-off

Jersey City, New Jersey
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New Jersey’s sports betting market experienced a decline in its monthly revenue figure. However, strong annual growth is still enjoyed in one of the US’ most mature markets. 

Figures from the New Jersey Division of Gaming Enforcement detailed that New Jersey sports betting operators handled $833.9m in April, down 10% year-over-year and significantly from the $1bn wagered in March

However, this drop-off is expected due to the quieter sporting calendar during April. Handle was broken down by $35.5m in retail sportsbooks and $798.4m which was bet online. 

Sportsbooks still enjoyed a stronghold rate of 8.7%, meaning that revenue displayed strong growth of 43.6%YoY as operators took in $72.3m, up from $50.3m.

Revenue did decline by 22.3% from March, although this was a month in which March Madness dominated the calendar and captured the attention of bettors. There is a noticeable dip in betting volume, handle, and revenue in most states from between March and April. 

FanDuel was the market leader in New Jersey, taking in $39.8m in revenue, followed by DraftKings, which took in $29.7m The top five operators comprised the aforementioned plus BetMGM ($8.2m), Caesars ($5.4m), and Barstool ($3.9m). 

For the year-to-date, sports betting revenue in New Jersey stands at $292.3m, an increase of 40.6% YoY. 

Online casino market continues to grow annually

The DGE also disclosed operators’ online casino revenue figures, too. Comprising online slots, table games, and online poker, the Garden State’s casino operators took $158.9m, up 16.1% YoY. 

Per vertical, online slot and table games provided the overwhelming majority of revenue, generating $156.6m.

Meanwhile, online poker, which received a boost at the start of the year when New Jersey and Michigan received approval to combine their liquidity pools, generated $2.3m in revenue. 

Breaking down the figures by operator, the overwhelming majority of market share was spread amongst just three operators. Borgata was the narrow market leader, yielding $43.2m in revenue. 

Meanwhile, Resorts Atlantic City took in $41.7m and Golden Nugget Atlantic City enjoyed $41.65m in earnings. No other operator made more than $9m last month. 

Tax payments 

Including the land-based casino industry, which generated $231.5m last month (down 1.6% YoY), gaming revenue in New Jersey increased by 8.8% over the previous 12 months to $420.9m, showing the mature market still has large potential. 

With various tax rates in place depending on vertical, operators paid out $542.2m in taxes to the state for April 2023.