New Jersey sportsbooks operators received both tricks and treats in October. Last month, the Garden State’s budding sports betting industry tallied over $260 million in total handle – or the combined sum of all wagers placed – to grow by more than 40 percent.
But in a month which featured one of the worst weeks ever for folks booking NFL bets, New Jersey’s collection of nine licensed operators saw revenue – or the combined sum of sportsbook winnings – cut cleanly in half.
The state hauled in $23.9 million in September revenue, buoyed by five well-known brands – William Hill U.S., FanDuel, Caesars Entertainment, 888 Sports, and BetStars – launching online / mobile betting platforms. That marked a significant increase from $9 million in August revenues, but the upward trend ended abruptly in October, when operators won only $11.6 million from bettors.
In terms of the handle-to-revenue ratio, New Jersey sportsbooks put up their poorest performance to date, retaining less than 4.5 percent of all tickets sold as profit. That’s down significantly from 13 percent in September for New Jersey sportsbooks and 10 percent in August.
The disparity between increased handle and falling revenue is largely attributed to unusually successful weeks for the NFL betting public, along with “futures” bets which have been placed but not settled.
The September revenue report released by the New Jersey Division of Gaming Enforcement (NJDGE) included glowing comments from director David Rebuck, who praised operators in the state for their successful integration of online / mobile wagering.
Rebuck didn’t include a statement in October’s press release, but the online / mobile sector continued to impress by accounting for the lion’s share of statewide handle and revenue.
Nearly $175 million of October handle was generated from internet-based betting, good for more than 66 percent of the total tickets sold.
And as the table below illustrates by breaking win totals down by operator and vertical, online / mobile wagering accounted for nearly $6 million more in monthly revenue:
October Sports Betting Revenue by Operator and Platform
|Operator (Online Partner)||Online / Mobile Revenue||Brick & Mortar Revenue|
|Resorts AC (DraftKings; BetStars)||$5,090,253||$97,313|
|Monmouth Park (WH U.S., Sugarhouse from 10/9)||$608,611||$606,981|
|Ocean Resort (William Hill)||$385,641||$438,552|
|Golden Nugget (SugarHouse thru 10/8)||$151,446||$46,109|
|Bally’s AC (Caesars Online; 888)||$108,359||$303,240|
The table above shows the online / mobile betting market to be dominated by the Resorts AC casino ($5,090,253) and the Meadowlands racetrack ($2,427,928) – partners of daily fantasy sports (DFS) industry leaders DraftKings and FanDuel, respectively.
In a statement offered to Legal Sports Report, DraftKings senior director of digital sportsbook operators Jamie Shea explained how the DFS site came to conquer New Jersey sports betting in just three months:
“Since launching DraftKings Sportsbook in August, we continue to exceed our internal projections.
We’ve paid out more than $150 million to winning bettors in New Jersey, and even in an increasingly competitive market, our customer retention rate remains strong.
We plan to build on this initial success in the coming months as we unveil exciting new features to our Sportsbook product.”
FanDuel also spoke with Legal Sports Report to put its October numbers into perspective:
“October was a great month. Demand for the FanDuel Sportsbook continues to outpace our expectations with online handle 2.5 times higher than September and continued double digit growth in retail handle.
It was an exciting month for bettors who won at a high rate on football and benefitted from our industry-leading pricing and odds boosts.
We will continue to offer New Jersey customers the best pricing and promotions in the industry and are looking forward to further growth in NJ and beyond.”