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New Jersey sportsbooks fall below $750 million in February

17 March 2021

(PRESS RELEASE) -- New Jersey sportsbooks took in less than $750 million in wagers in February, the state’s lowest total since August as the nation’s largest U.S. sports betting market settled into the post-NFL betting period. Meanwhile, online casinos crossed $90 million in revenue, all while the state’s gaming industry potentially faces headwinds from increased competition, according to PlayNJ analysts.

“Even with a slowdown in February, which was expected, New Jersey remains the most fertile online sports betting and online gaming market in the U.S.,” said Dustin Gouker lead analyst for PlayNJ.com. “February’s results are a reminder, though, that New Jersey’s market is not destined for infinite growth. For the first time since Pennsylvania launched, New Jersey could face increased competition. This time it’s from New York, its main feeder market, which is pushing ahead on legalization efforts. While that is cause for concern in New Jersey, the state’s online sportsbooks and casinos have positioned themselves as a giant in the industry, able to withstand neighborly competition.”

Anchored by $117.4 million in Super Bowl betting, New Jersey’s sportsbooks took in $743 million in bets in February, according to official data released Tuesday. That is up 50.1% from $494.8 million in February 2020, though well short of January’s $958.7 million.

Operators produced $46.2 million in revenue from February’s wagers. That is up 171.8% from $17 million in February 2020, though down 48.4% from the record $82.6 million in January. February’s results yielded in $5.7 million in state taxes for the month.

Even with $117.4 million in Super Bowl wagering, the momentary dip from the 28 days in February from the 31 days in January is expected. In every year in which New Jersey has offered legal sports betting, February has generated less in total wagers than in January. But the Garden State remains head and shoulders above any other market. The January handle in Nevada, the nation’s No. 2 market, was $646.5 million, more than $300 million less than in New Jersey, and that gap will likely remain in February.

“As of right now, New Jersey is playing on a different level than any other state,” said Eric Ramsey, analyst for PlayNJ.com. “That could be particularly apparent in March. March Madness is the largest sports betting holiday of the year, and in New Jersey, basketball in general tends to draw a lot of action. In other words, it’s possible New Jersey could become the nation’s first state to generate more than $1 billion in sports bets in a single month.”

Online betting produced 92.8%, or $689.2 million, of the state’s total handle in February. FanDuel Sportsbook/PointsBet topped the online market again with $24.9 million in gross revenue, down from $41.8 million in January.

FanDuel was followed in revenue by:

- Resorts Digital/DraftKings/Fox Bet ($7.7 million, down from $15.7 million in December)

- BetMGM/Borgata ($4.4 million, down from $7.9 million)

- Monmouth/William Hill/Sugarhouse/TheScore ($2.5 million, up from $2.3 million)

- Ocean Casino/William Hill ($2 million, down from $4.2 million)

- Hard Rock/Bet365/Unibet ($1 million, down from $1.5 million)

- Caesars Sportsbook/888sport ($317,766, down from $375,129)

- Tropicana/William Hill ($71,758, down from $76,933)

- Golden Nugget/BetAmerica (-$37,143, down from $176,199)

Retail sportsbooks continue to rebound if only gradually, collecting $53.7 million in bets. That was still short of the $58.3 million retailers collected in February 2020. Meadowlands/FanDuel led retail books with $2.3 million in revenue.

“FanDuel and DraftKings have dominated the market since launch, and there really hasn’t been a major change in that dynamic since 2018,” Gouker said. “BetMGM is making end roads in other states, including Michigan, but it will take a lot for it to significantly eat into the New Jersey market share of the nation’s two largest operators.”

Online casinos and poker

While sports betting stepped back slightly in February, online casinos games and poker continued to roll with $93.8 million in February revenue, up 80.4% from $52 million in February 2020. Though the tally fell short of the record $103.8 million in January, online casinos and poker generated $3.4 million per day over 28 days in February, up from $3.3 million per day over 31 days in January.

For nearly a year, Borgata has continually narrowed the once huge chasm between it and market leader Golden Nugget, and that has continued even with Golden Nugget’s inclusion of FanDuel Casino in February, too. The Golden Nugget generated $27.9 million in February revenue, down from $31.2 million in January. Meanwhile, Borgata hit 25.7 million in February, down from $28.7 million in January.

Resorts Digital, which continues to grow, too, was third with $19.7 million.

“After so many years of Golden Nugget dominance, it’s been fascinating to watch Borgata and Resorts Digital make gains over the last year,” Ramsey said. “FanDuel adds another big name as these operators jockey for market share, and it has the ability to shift the dynamic. But the online casino pie continues to grow, which is ultimately great for the state.”

Some other highlights from February’s report:

- February’s casino win yielded $14 million in state taxes. Online casinos and poker, in addition to sports betting, have now generated $501.5 million in taxes for the state.

- Revenue from online casinos was $91.3 million, up from $50.2 million in February 2020. Online poker produced $2.5 million, up from $1.8 million in February 2020.

< Gaming News

New Jersey sportsbooks fall below $750 million in February is republished from Online.CasinoCity.com.