Through August, New Jersey sportsbooks rode the start of an impending sports betting boom, as the region’s igaming ecosystem narrowed the gap on $1 billion in yearly revenue.
The gross gaming revenue generated by New Jersey’s online casinos and poker rooms was $113.2 million in August, up 29 percent from $87.8 million the previous month, but still short of the $118.7 million set in July.
August’s revenue came in at $110.8 million, up 30.7 percent from $84.7 million in August 2020.
Through the first eight months of 2021, online casinos and poker rooms have generated $866.1 million in revenue, putting the industry on track to beat 2020’s record of $970.4 million and break the $1 billion barrier for the first time.
Borgata, which owns the BetMGM brand, remained at the top of the tree with revenue of $37.2 million (2020: $19.7 million), beating out Golden Nugget Online Gaming’s $29.7 million (2020: $27.6 million) and Resorts Digital’s $21.6 million (2020: $17.8 million).
Furthermore, Borgata reigned supreme in the land-based rankings once again, with revenue of $52 million (2020: $40.4 million), although Hard Rock closed the gap with $45.7 million (2020: $32.8 million).
Revenue potential to triple
Eric Ramsey, analyst for PlayUSA said: “This year’s revenue could end up nearly tripling the revenue gained in all of 2019, which is remarkable to think about.
“The behaviour change we saw last year appears long-lasting, and perhaps even permanent. While there are some bumps in the road ahead for sports betting, including increased competition from neighbors, it appears there is not much that will slow down online casinos.”
In August, New Jersey’s online and retail sportsbooks pulled in $664.7 million in wagers, down half a percentage point from $668 million the previous month but up 14.9 percent from the 2021 low of $578.7 million set in July. In 2021, sportsbooks have taken in $6.1 billion in wagers, surpassing the $6 billion handled in all of 2020.
August gross gaming income increased 31.7 percent to $52.0 million from $39.5 million in August 2020, but was down 5.4 percent from July’s 55 million. State and local taxes totalled $7.9 million as a result of this.
“The state’s online casinos continue to churn out $100m-plus revenue months, month after month, and August’s growth shows just a hint of what is to come for sports betting,” added Ramsey.
“Now the state’s sportsbooks and online casinos are both poised to reach heights that not long ago were thought to be impossible.”