Sports betting has been a boon for New Jersey.
The state’s casinos have generated more than $150 million in revenue since sports betting went live in June 2018.
In addition to the direct revenue, NJ sports betting is paying off in other ways. Atlantic City casinos have reported increased foot traffic during big events such as the Super Bowl and March Madness.
And then there’s online sports betting, which is the real success story in New Jersey.
Launched in August 2018, online sports betting is generating the bulk of sports betting revenue in the Garden State (around 80% of total handle and revenue), and it’s also having a beneficial impact on New Jersey’s other existing forms of online gambling.
NJ sports betting provides a helping hand
NJ online casino revenue has been growing at a strong clip since the market launched more than five years ago. But recently, that growth has intensified. The recent spike is being attributed to sports betting.
Specifically, analysts have noted that the ability to cross-sell NJ online casino games to online sports bettors is causing revenues to spike at online casinos.
Since October 2018, when online sportsbooks began proliferating, online gambling revenue has grown by at least 30%. Growth has been even higher over the past four months, ranging from a low of 40% to a high of 53% over that period of time.
Compare that to the previous 18 months, where there was just a single instance of 30% growth.
The biggest sportsbooks are seeing the biggest online casino gains
Additional evidence that the recent online casino growth is being spurred on by sports betting can be found at the individual operator level.
Those two casinos just so happen to have connections with the top two sportsbooks apps in New Jersey: DraftKings and FanDuel. The online casino gains mimic the online sports betting market share in the chart below.
Note: Betfair, an online casino sub-brand operating under Golden Nugget’s online casino license, shares login details and an online wallet with FanDuel Sportsbook.
Sports + casino = a match made in heaven
Yes, there was strong organic growth prior to sports betting, but all signs point to mobile sports betting amplifying casino growth.
The two big dogs, FanDuel and DraftKings, have a combined 85% online sports betting market share, and that’s causing online casino revenues to surge by 40% and 50% in March.
On the other side of the coin, the other online sports sites with affiliated NJ online casinos have trivial shares of the New Jersey sports betting market.