State’s gaming market healthy as sportsbooks shrug off competition from New York, while online and retail casinos continue revenue surge, according to PlayNJ
(ATLANTIC CITY, N.J.) — New Jersey’s online and retail sportsbooks took in nearly $1 billion in wagers in February even as revenue dropped significantly. But a 33% year-over-year gain in wagering combined with another strong month in online casino gambling is more evidence of the resilience of the New Jersey gaming industry, according to PlayNJ, which tracks gaming developments in the state.
“New Jersey’s online and retail sportsbooks continue to follow the same historical seasonal patterns, showing only a modest impact from New York’s entry into the online sports betting space,” said David Danzis, an analyst for PlayNJ.com. “That is a cause for relief for those that are heavily vested in the success of the state’s industry, including the state itself.”
New Jersey’s online and retail sportsbooks attracted $985.6 million in bets in February, which was down 26.9% from the record $1.35 billion in January, according to official reporting released Wednesday. Most telling, though, betting volume was up 32.7% from the $743.0 million in bets that sportsbooks accepted in February 2021.
Bettors fared well on February’s bets, dropping sportsbook revenue to $30.9 million. That’s down 38.6% from $46.2 million in February 2021 and down 94.8% from $60.2 million in January. The result of February’s win was $4.5 million into state and local taxes.
The Super Bowl was a key driver in February with a state-record $143.7 million in non-parlay wagering. But as important as football is, basketball continues to be the lynchpin of New Jersey’s sports betting market. Over the 28 days of February, bettors placed $503.1 million in bets on basketball, down modestly from $553.7 million over 31 days in January.
“The popularity of the NBA, in particular, has always kept New Jersey’s sportsbooks relatively busy in February even as most other legal markets suffer a post-Super Bowl hangover,” Danzis said. “There is a natural seasonality to sports betting. But bettors’ interest in basketball has long made the seasonal troughs less pronounced in New Jersey than almost any other market.”
Online sportsbooks drew $899.6 million in bets, or 91.3% of the state’s handle in February. FanDuel/PointsBet/SuperBook generated $14.0 million in gross revenue, down from $35.5 million in January. DraftKings/Fox Bet/Resorts was No. 2 with $8.6 million in revenue.
Retail sportsbooks lost $1.4 million on their bets. Resorts AC topped the market with $451,455 in revenue, a rare win over typical leader Meadowlands/FanDuel, which lost $146,166.
“With baseball now committed to a full 162-game season, sportsbooks can look forward to what appears to be the first normal sports year since 2019,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayNJ.com. “This looked like a year where New Jersey’s sportsbooks might give some ground with increased competition in neighboring states, but those concerns are starting to fade.”
New Jersey online casinos and poker
New Jersey’s online casinos and poker rooms fell short of yet another record for monthly revenue, a product of a short month more than any slowdown for the industry. February resulted in $130.0 million in online casino and poker revenue, down 5.7% from the record $137.8 million in January. Year-over-year, revenue was up 38.6% from $93.8 million in February 2021.
Average daily revenue from online casinos and poker rooms actually rose from January, though, reaching a record $4.6 million per day over the 28 days of February compared with $4.4 million per day in January. February’s revenue yielded $22.7 million in state and local taxes.
Meanwhile, brick-and-mortar casinos in Atlantic City won $212.4 million in revenue, a 43.3% gain over February 2021.
“After two years of pandemic concerns and the increase in competition from New York, New Jersey’s gaming market is stabilizing,” Danzis said. “Atlantic City casinos are rebounding, while revenue from sportsbooks and online casinos reflect the market’s ‘new normal,’ which is a really good normal. All in all, it was an excellent month for the state.”
Other highlights from February’s report:
- Borgata led the market with $37.8 million in casino and poker revenue. Golden Nugget was second with $34.6 million and Resorts Atlantic City was No. 3 with $29.9 million.
- Online casino games produced $127.7 million in revenue, up 39.9% from $91.3 million in February 2021.
- Online poker generated $2.2 million in revenue, down 10.2% from $2.5 million in February 2021.
For more information and analysis on regulated sports betting and online gaming, visit PlayNJ.com/news. Contact: Zack Hall, Catena Media, [email protected]