New Jersey was bound to be a market leader in US sports betting. Instead, the NJ sports betting revenue industry is thriving due to New Jersey’s successful court case, which revokes the Professional and Amateur Sports Betting Act (PASPA). It effectively allowed states other than Nevada to legalize sports betting.
New Jersey had the highest annual sports betting handle of almost any state in 2020, exceeding Nevada for more than $1.5 billion in bets placed. Will New Jersey maintain its lead in 2021, or will Vegas surge as the pandemic fades?
Scroll down to see how sports betting has grown in the Garden State. Then, continue reading for a more in look at the sports betting industry in New Jersey.
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NJ Revenue From Sports Betting
NJ sports betting has become the first state to see $10 billion in wagers in a single year, with its fourth consecutive billion-dollar monthly handle.
According to a state report published Friday, New Jersey sportsbooks handled over $1.2 billion in December. The December handle raises the full-year total to $10.9 billion, up from $6 billion in 2020.
In NJ sports betting revenue September legal sports report, New Jersey has become the first state to exceed $1 billion in wagers in a single month. In October, the market set a new high when bettors gambled $1.3 billion.
NJ Sports Betting Revenue Has Gone Down
While bet totals were consistent with the previous three months, NJ online sports betting revenue fell precipitously.
Sportsbooks produced $59 million, representing a 4.8 percent hold. However, that figure is down 48.6 percent from November’s record-breaking $114.8 million, representing a 9.1 percent decrease.
New Jersey sportsbooks earned $82.4 million in September and $84.2 million.
The state’s sportsbooks earned more than $816 million in sports betting revenue for the entire year. It increased 104.7 percent from 2020 when sportsbooks generated $398.6 million in income.
The state collected $7.5 million in NJ sports betting tax revenue in December, bringing the total for the year to more than $102.6 million.
New Jersey Mobile Rules
New Jersey bettors gambled $1.1 billion online in December, accounting for 91.7 percent of the total handle.
In 2021, the total online handle attained $9.9 billion, accounting for 90.8 percent of the total for the year.
Will New York put an end to New Jersey’s upward trend?
Mobile sports betting in New York went live on January 8 and received 17.2 million geolocation pings in its first weekend. Over 8 million such pings originated in New York City.
Four sportsbooks were included in the initial launch, with some other five operators on the way.
With New Yorkers no longer required to cross borders into New Jersey to place mobile wagers, the Garden State’s monthly handle will likely fall significantly. According to industry estimates, New Yorkers account for approximately 20% of NJ sports wagering handles.
Trends in NJ Sports Betting Revenue
Aside from a minor dip in spring 2020, New Jersey’s sports betting market has increased steadily.
DraftKings became the first online bookie in the state to be available outside of Nevada in August 2018, ushering in a new era of online sports betting in the United States. Of course, new Jersey has long reaped the benefits of being an early adopter of mobile gambling. But, of course, it also benefits from having top sportsbooks like BetMGM headquartered in Jersey City (plus FanDuel in nearby NYC).
Let’s look at a few factors contributing to New Jersey’s status as a top sports betting destination.
The American Sports Betting Market Leader
The Garden State may have the most tolerant set of sports betting rules and regulations of almost any jurisdiction in America. A wholehearted acceptance of sports gambling has paid off handsomely. New Jersey has become the model for all the other states to emulate.
In terms of revenue, New Jersey’s sports betting market will be the largest in the United States by 2020. If current trends continue, New Jersey will soon surpass Nevada in overall wagering volume since the repeal of PASPA in June 2018. It is essential and surprising given Nevada’s decades-long monopoly in developing its sports gambling market. However, due to casino closures and travel bans last year, Vegas should rebound in 2021.
The pandemic impacted New Jersey casinos as well. Still, unlike Nevada, New Jersey does not require online bettors to register in person. It is a significant benefit during casino shutdowns and when it comes to enticing casual fans further into the world of sports betting. As a result, despite having a large group and proximity to the NYC metro area, we believe New Jersey will maintain its leading position even as Nevada recovers and new states enter the market.