While New Jersey sportsbooks did not quite reach their once-considered improbable goal of crossing the $1 billion per month revenue barrier in January 2021, they possibly went one step better in reporting the best-ever month of revenue for the Garden States’ sports wagering industry.
Many industry experts were excited in their optimism that the state of New Jersey would hit the United States’ first ever monthly $1 billion sports betting handle in January for a single state with the NFL playoffs, the NBA and college basketball, and the NHL all in action during the month. While the billion-dollar benchmark wasn’t quite hit, the Garden State isn’t necessarily hanging its head with the January numbers either.
New Jersey’s January handle came in at $958.72 million which represents a very rare month-to-month drop of 3.8% from December 2020’s record $996.3 million. Year-on-year results, however, is a very different story. January 2021 was a 77.5% increase on January 2020’s handle of $540.11 million.
While the Handle Drops, the NJ Revenue Spikes
Unlike the slight drop in the overall sports betting handle in January, the overall revenue numbers put smiles on the faces on operators and the New Jersey State Government alike.
New Jersey sportsbooks reported a record – $82.64 million in revenue, a 24.5% increase from December’s $66.39 million record profits. The earnings increase came along with an 8.7% hold-rate. Year-on-year profits came in with an excellent 54% increase in the year from January 2020 to January 2021.
Tax revenue to pay for NJ state government services and infrastructure for the state’s residents also set a record. $10.36 million made its way to state and local coffers to assist in funding a range of programs.
Meanwhile, the Garden State’s online casinos exceeded $100 million in revenue, becoming the first legal gaming jurisdiction in U.S. history to cross the $100 million revenue threshold in a single month.
Dustin Gouker, leading online sports betting industry expert remarked;
“New Jersey’s online casinos and sportsbooks have defied conventional wisdom from the beginning, and are hitting milestones that many thought would take years longer to reach. The rapid maturation of the online products in New Jersey has made the state the new standard bearer for the modern US gaming industry.”
According to expert projections for 2021, the superb opening month result should build momentum for what looks like being another giant leap forward for New Jersey sports betting this year. If the current level of growth continues throughout 2021, New Jersey is set to potentially reach as much as $10 billion in sports wagers, more than $600 million in revenue, and raise as much as $75 million in state and local taxes.
Online Sports Betting still King in NJ
New Jersey’s online sportsbooks generated $886.7 million, or 92.5% of the state’s January betting handle with the duo of FanDuel / PointsBet retaining their position of state market leader raising $41.8 million in gross revenue.
In what was no surprise at all given their expanded format this season, The NFL play-offs attracted a strong result in the Garden State in January 2021 with $201.8 million of handle.
However, the NBA and college basketball were the headliners for New Jersey (of course, they do play more matches than the NFL it must be noted) with $320.3 million. The ‘other’ category that includes UFC and NHL betting among others recorded an excellent $214.4 million.
Considering the current momentum of the market in New Jersey, the state appears set to have a bumper 2021. With March Madness just around the corner, big online betting numbers seem sure to follow for the Garden State.