April was no exception, almost exclusively due to online wagering.
The online figures are staggering
Figures unveiled on Tuesday afternoon by the New Jersey Division of Gaming Enforcement revealed that the state’s sports betting industry took $313.7 mm in wagers during the month of April, with $254 mm originating from the market’s more than one dozen online wagering sites.
That works out to 81% of bets stemming from online, an all the more impressive feat considering that New Jersey is host to a swarm of retail sportsbooks in Atlantic City, not to mention one book (FanDuel Sportsbook) located smack dab in one of the state’s key population centers.
Month after month, New Jersey has continued to reap a larger percentage of its sports betting revenue from online, and with more mobile sportsbooks expected soon — including a Borgata-branded one that just went live today — it’s quite plausible that online wagering will one day account for 85%, or even 90%, of industry handle.
We say it every month, but if this is not a wake-up call to states considering the passage of a retail-only sports betting bill (or even mobile sports betting bill with an in-person requirement) than we don’t know what is. Fortunately, the tide has recently turned, with several states recently passing, or close to passing, legislation that will allow for full-fledged mobile sports wagering.
- Indiana recently legalized full mobile sports betting, with both a tax rate and licensing fee that virtually ensures the industry will thrive.
- Iowa, which just legalized sports betting on Monday, will require in-person mobile registration, but only until January 2021.
- In Tennessee, a deeply flawed but mobile-only sports betting bill sits on the governor’s desk and is expected to be passed into law without a signature on May 24.
Pennsylvania is also primed (finally) to unveil its first online sports betting sites. The conditions of the PA market pale in comparison to that of NJ, which supports both a much more favorable tax climate, and fewer restrictive regulations — but at least bettors in Pennsylvania will be able to place mobile wagers (almost) anywhere in the state, without a burdensome in-person registration requirement.
New Jersey sports betting breakdown
April was admittedly a down month for sports betting in New Jersey, but this was to be expected.
In March, handle soared to $372.4 mm, with revenue clocking in at $31.6 mm. The following month, industry handle was down nearly $60 mm, with the dropoff almost exclusively accounted for by the NCAA tournament wrapping up. Baseball helped bridge the gap considerably, with handle clocking in at approximately $86.1 million, but it was hardly enough to offset March Madness, which is one of the most popular betting events of the calendar year.
Sports wagering revenue for April was $21.2 mm.
On the license holder level, it was once again The Meadowlands, which consists of FanDuel Sportsbook and up-and-comer PointsBet Sportsbook, stealing the show. Together, the duo accounted for $12.1 mm in revenue, with $8.8 mm stemming from online. For the month, the Meadowlands captured an eye-watering 57.1% market share. In an industry with more than 20 retail and mobile sportsbooks, that’s just silly.
About April’s tallies, FanDuel had this to say:
“The FanDuel Sportsbook is the clear number one sports betting operator in New Jersey, a notable achievement just one year since the overturn of PASPA. April was our second biggest revenue month since launch, thanks in part to enthusiasm for the NBA and NHL Playoffs as well as the start of baseball season. Our leadership extends beyond just market share, as we offer over 50% more markets per event than other operators.”
Coming in second place was the trio of Resorts, DraftKings, and BetStars NJ (soon to be rebranded), with nearly $4.8 mm in digital revenue and a scant $246k in land-based earnings. It is presumed that DFS giant turned sportsbook turned online casino DraftKings accounted for the lion’s share of Resorts’ sports wagering revenue.
Third place also belonged to the horsemen, with Monmouth Park raking in almost $1.8 mm in online revenue (via partners William Hill and Play SugarHouse), and another $761k from retail wagers.
After that, the numbers trend toward embarrassing, with retail outlets at Golden Nugget and Ocean Resort reporting negative revenue. Most other retail sportsbooks in Atlantic City didn’t fare much better, registering five-figure revenue tallies at best. Both Borgata (playMGM) and Tropicana online were in the red for the month.
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