December Revenue Report for NJ Sports Betting Released
December revenue report for NJ sports betting has been released and not only does New Jersey come up on top, but they flirt with the $1BN hold number yet again.
Can NJ keep the momentum in 2021 and hit that $1BN handle they have been chasing? Will New York kill their momentum if sports betting is legalized this year? There is a lot of questions for the Garden State in 2021.
December Revenue Report for NJ Results
In yesterday’s New Jersey December Revenue Report, the state reported taking in $996.3 million in bets that turned into $66.4 million in revenue and benefitting from $7.6 million in tax revenue. Each are record-breaking numbers that lead New Jersey to exceed expectations for 2020 with a total handle of $6 billion.
🚨 NEW: For a fourth straight month, New Jersey breaks the all-time record for monthly sports betting handle, with nearly $1B wagered in December. The month also marked a new U.S. record for the Garden State in monthly sports betting revenue, with sportsbooks bringing in $67M. pic.twitter.com/EL6bNLCB5P
— American Gaming Association (@AmericanGaming) January 13, 2021
While NJ reported impressive numbers, one of the most surprising is that 94% of all bets were placed online. New Jersey’s initiative to facilitate online betting kept the industry alive during the pandemic that ravaged many states around them including New York who just announced an estimated $15 billion dollar tax revenue deficit. To no surprise Cuomo said he plans to bring sports betting online in NY.
What Did New Jersey Bet On in 2020?
According to New Jersey’s Office of The Attorney General, bettors went heavy on football in 2020, putting $1,355,022,263 in gambling action. NBA came in second with $1,144,763,928. Parlay wagers were a major revenue driver bringing in $1,232,820,272 in handle and a 15% hold. Baseball by comparison made up only a half million dollars of the 6 Billion dollar handle total.
How Did The Operators Do?
New Jersey sports betting revenue for brick and mortar casinos were hard hit in 2020 because of the pandemic but their online partners were able to keep revenue flowing in.
Online brands like Fan Duel and DraftKings benefited from their partnerships with casinos like Meadowlands and Resorts Digital. Smaller partners such as PointsBet and FOXBet were able to get a small piece of the action as well.
|Sports Wagering Handle||Monthly Handle||YTD Handle|
|Onsite(Retail) Sports Wagering||66,968,953||487,074,391|
|Internet(Online) Sports Wagering||929,331,841||5,530,632,713|
|Total Sports Wagering Handle||996,300,794||6,017,707,104|
Borgata and BetMGM took a substantial share of the action. William Hill operates under three different licenses so they were able to keep getting action from casinos like Monmouth Park and The Ocean Casino.
What’s Next For New Jersey Sports Betting in 2021?
New Jersey may not be able to keep this trajectory in 2021 if New York pushes to legalize online sports betting before the 2021-2022 football season. According to the Washington Post, at least 20% of sports betting action is placed by New Yorkers. That means NJ should expect to immediately see a 20% reduction when NY sports betting comes into play. One potential advantage for the Garden State is that NY is expected to offer a state lottery product. So, if a bettor loves to play at Draft Kings, he may continue his betting habits at the pub across the border.
ICYMI: I'm proposing legislation to authorize mobile sports wagering in NYS.
Online sports betting is a rapidly evolving market and allowing it in New York will keep revenue here at home that can help us rebuild post-COVID.#SOTS2021
— Andrew Cuomo (@NYGovCuomo) January 11, 2021
The longer term outlook is that New York will take over as the sports betting leader, with New Jersey falling to second or third. That’s until states like Texas comes into the picture. Blake Weishaar with Fantini Research has said he’s seen estimates that a mature New York betting market could generate revenues of up to $1 billion. New York has proposed 2 different sports betting bills. Their success in 2021 will directly impact the New Jersey state budget.