New Jersey Sports Betting Handle Doubles to $184 Million
New Jersey Division of Gaming Enforcement (NJDGE) director David Rebuck made waves last week during the Global Gaming Expo in Las Vegas, telling attendees that September sports betting numbers in the Garden State “will not disappoint.”
Rebuck punctuated his rosy prediction by declaring “I think you’ll be stunned.”
The NJDGE’s total gaming revenue results were released three days later, and while Rebuck’s subjective assessment remains up for debate, sports betting in New Jersey is clearly thriving.
September saw sports betting handle – or the total amount of wagers placed – climb to just under $184 million. Of that amount, sportsbook operators held nearly $24 million in win (revenue).
Those numbers represented massive gains over August, when sportsbooks in the state generated more than $95 million in handle and over $9 million in revenue.
Online / Mobile Integration Fuels “Explosive” Growth
In a press release issued to accompany the revenue report Rebuck cited the addition of online and mobile betting platforms as the impetus for New Jersey’s sports betting double up:
“Driven by the explosive growth in sports wagering and continuing improvements in Internet gaming and brick-and-mortar casino win results, the gaming industry produced another month of superb revenue increases.
The revenue results point to a strong finish for New Jersey’s gaming industry in 2018.”
New Jersey’s first legal sportsbooks went live back in June, but it took until August 1 for daily fantasy sports (DFS) kingpin DraftKings to launch the state’s first online betting platform. DraftKings’ licensing partnership with Resorts Casino Hotel formed the state’s lone online option throughout most of August, with Borgata launching its playMGM app on August 22, and Golden Nugget linking up with PlaySugarHouse one day later.
With the advantage of early entry, DraftKings led the way with $2,970,331 in August revenue, followed by SugarHouse Sportsbook with $103,324, and playMGM with $49,626.
Online integration increased in September, as five new betting sites/apps joined the fray.
William Hill’s partnerships with Ocean Resort and Monmouth Park Racetrack produced a pair of platforms on September 1.
On the same day, FanDuel – the chief rival to DraftKings in the DFS space – went live with an online sportsbook linked with The Meadowlands.
Caesars Entertainment used its Harrah’s AC and Bally’s AC casinos to launch an affiliated online sportsbook on September 6.
The 888 Sportsbook went live under the Caesars license on September 10.
And on September 13, Resorts AC supplemented its online poker partnership with PokerStars by launching the latter’s BetStars Sportsbook.
With eight online / mobile options available for most of the month, September’s revenue numbers relied heavily on the vertical, with more than half of the $24 million haul coming from internet-based betting:
September Sports Betting Revenue by Operator and Platform
|Operator (Online Partner)||Online / Mobile Revenue||Brick & Mortar Revenue|
|Resorts AC (DraftKings; BetStars)||$8,505,940||$279,492|
|Golden Nugget (SugarHouse Sportsbook)||$619,030||$499,414|
|Ocean Resort (William Hill)||$292,081||$999,858|
|Bally’s AC (Caesars Online; 888)||$106,463||$394,046|
|Monmouth Park (William Hill)||$70,785||$2,138,097|
DFS Duo Leads the Pack in Terms of Online Revenue
Using online-based revenue only, the Resorts AC licensing group – consisting of DraftKings and BetStars – was the clear market leader with $8.5 million in revenue.
The bulk of that came from DraftKings, but as a group, Resorts AC’s online offerings accounted for more than two-thirds of online win.
Next up was fellow DFS innovator FanDuel, with the site’s online / mobile component adding $2.8 million in revenue.
The two platforms clearly benefited from brand association, as both DraftKings and FanDuel enjoy years of prominence among the sports betting set thanks to their DFS dominance.