New Jersey Sportsbooks Hit Two-Year Low

New Jersey sportsbooks closed April at a low of two years, continuing the pattern set a month earlier, as online casinos in the Garden State boomed over the month.

Igaming companies and poker rooms in the area reported the highest revenue ever of $79.96 m , up 118.6 percent from $33.6 a year earlier, with poker tripling its figures from February to reporting a record $5.15 m, up from $3.6 m a month earlier.

Despite this, year-over-year revenue gains of $43.4 million replace just 20.9 percent of the $207.6 million in revenue created by land-based casinos in Atlantic City in April 2019.

Golden Nugget remains the dominant force in the jurisdiction with revenue of $27.6 million, ahead of Resorts Digital and Borgata which reported $16.1 million and $15.8 million respectively.

Eric Ramsey, an analyst for PlayNJ.com said: “Such a dramatic shift to digital gambling could permanently alter the market, even after land-based casinos open. The longer the current closures go on the higher chance there is for a more permanent shift in bettors’ preferences for digital gaming.”

With sporting choices limited and retail sportsbook out of service, PlayNJ reports the area is out in the best over the course of the month at around $450 m.

According to official reporting, New Jersey sportsbooks collected just $54.6 m in bets in April. Announced ahead of the second anniversary of the PASPA decision opening the door to legal gambling in New Jersey, sportsbooks reported the lowest statewide amount since $40.7 m had been wagered in June 2018, the first full month of legal sports betting.

Handle was down 82.6 percent from April 2019’s $313.7 m, yielding $2.6 m in gross sales, down 87.7 percent year-on-year from $21.2 m. That created State taxes of $356,726.

Dustin Gouker, lead analyst for PlayNJ.com said: “Seeing New Jersey’s retail sportsbook handle at zero and its land-based casinos generate no revenue is jarring, laying bare just how much these shutdowns are costing the industry.

“The jump in revenue from online casinos and poker is welcome, but there is no way yet for it to fully make up for the revenue lost by Atlantic City’s casinos and sportsbooks.”

He added: “This is the US gaming industry’s first full glimpse of the dramatic effect these shutdowns are having because New Jersey was mature enough last year to offer a true year-over-year comparison. The picture for the industry is not pretty, and that will continue until sports leagues figure out a way to reopen.”