Analysts Believe New Jersey Sportsbooks’ Growth Will Continue

The online and retail sportsbooks from New Jersey continued their record-breaking months and remarkable year-on-year growth in October, nearly hitting their first $500 m month. And that development, PlayNJ.com analysts said, will resume with the basketball season’s tip-off.

Garden State sportsbooks reported a whopping $487.9 million in bets in October, a 87% leap from $260.7 million in October 2018. October bets generated a record profit of $46.4 million, ahead of $11.7 million year-on-year, raising taxes of $5.7 million. Sportsbooks have now produced a lifetime income of $331.2 million.

New Jersey’s October handle is likely to fall short of Nevada for the second straight month, which will announce data later this month in October 2019. But that might change in the months to come.

“New Jersey has a real shot at surpassing Nevada again, if not in October, some time before the end of the NFL season,” said Dustin Gouker, Lead Analyst at PlayNJ.com. “The state’s handle is growing at a pace near 100%, year-over-year. And the overlapping of football and basketball should propel New Jersey into new territory.”

He added: “If New Jersey is going to pass Nevada during the NFL season, it will be in large part due to the comparative popularity of basketball in the Northeast. In Nevada, football betting is king, and it’s nearly as popular in New Jersey. But a key differentiation between the two markets is that New Jersey bettors’ have shown more interest in other major sports, especially basketball.”

Of all the October bets, $417 million were made online, reflecting 85% for New Jersey’s handle. That’s up from September’s 84 percent.

FanDuel Sportsbook / PointsBet kept pace with the online market, generating $20.7 million in gross revenue, up from $13.3 million in September. The licence of Resorts Digital, led by DraftKings and Fox Bet, lost ground by raising $10.6 million, down from $10.7 million in September.

At The Meadowlands, FanDuel Sportsbook posted $4.1 million in gross revenue in October, up from $3.6 million in September to lead sportsbook retailers.

“The addition of Fox Bet under the Resorts Digital license has reset the race for the top spot in the online market,” Gouker advised. “FanDuel is still the most popular single brand in the state, but it will be worth watching whether it can keep its lead with DraftKings and Fox Bet.”

The online casino and poker industry in New Jersey, meanwhile, continued its drive toward $450 m in annual revenue after a record October, as the online brand of the Golden Nugget created more revenue than its first land-based casino.

Online casino games and poker in October produced $45.2 m, up 69% in October 2018 from $26.8 m. In October, the Golden Nugget scored $16.6 m, up 71 percent from $9.7 m in October 2018, to lead the online casino market easily and topped the first generated $14.8 m Golden Nugget Atlantic City.

“What the Golden Nugget continues to prove is that its online casino can generate millions in revenue and grow at an overwhelming pace without a negative impact on their own land-based operations,” said Eric Ramsey, Online Gambling Analyst for PlayNJ.com. “When the first online casinos launched in 2013, many thought such a dynamic would be impossible. But clearly that has been proven wrong.”