New Jersey Revenue Drops in April; FanDuel Still King
After a record-breaking month in March that saw New Jersey take $372.5 million in bets, that number took a 16 percent hit down to $313.7 million in April. It’s an understandable drop with the end of March Madness, which accounted for a large chunk of March’s large handle. April was the sixth straight month that New Jersey reported over $300 million in bets.
As handle drops, so does revenue. Sports betting generated a revenue of $31.7 million in March, but that number dropped to $21.2 million in April. Sports betting made up roughly eight percent of the state’s total gambling revenue in April, which was $265.4 million.
Gambling revenue is up 24 percent from last April, and sports betting is a big reason why. Not just the money directly from sports betting, but also the money that it helps bring in. Sports betting attracts more customers into the casino. Once inside, bettors like to kill time at other places in the casino, such as slots and table games.
Since sports betting has launched in New Jersey, the state has seen over $2.6 billion wagered in its casinos and online.
Online Continues Strong
Online wagering accounted for 80% of the state’s handle for the month, over $253 million. New Jersey sports betting operators held an incredible 14 percent so far this year. That’s well above the traditional average of 5% that we typically see in Nevada.
FanDuel remains the top dog for the online sports betting market in New Jersey. FanDuel released a statement saying:
“The FanDuel Sportsbook is the clear number one sports betting operator in New Jersey, a notable achievement just one year since the overturn of PASPA. April was our second biggest revenue month since launch, thanks in part to enthusiasm for the NBA and NHL Playoffs as well as the start of baseball season.”
FanDuel accounted for most of the $8.8 million online under the Meadowlands casino license. DraftKings remained in a distant second place with the majority of the $4.8 million that was generated under the Resorts Casino license. These two companies are clearly the far and away favorites in the state. The next highest revenue generators after FanDuel and DraftKings were William Hill and SugarHouse. They only accounted for a total of $1.8 million between them.
Revenue Could Take A Hit
With Pennsylvania expected to launch its online and mobile sports betting applications in June, New Jersey may be seeing more revenue drops in the future. A large chunk of New Jersey’s sports betting activity comes from out-of-state bettors who travel into New Jersey, mainly from New York City.
The launch of online sports betting in Pennsylvania will take away nearly all of the Pennsylvania revenue that New Jersey has seen. The Keystone state may even be able to sway some bettors from New York away from New Jersey and into their state to gamble. A lot of that will depend on the types of bonuses and rewards that will be offered between the different casinos.
Another factor will be the odds lines. If you’re split between New Jersey and Pennsylvania and you see a game for -130 in Pennsylvania and -140 in New Jersey, you’re going to travel into Pennsylvania to place your bet. A healthy competition between states will only benefit bettors. Regardless of where bettors decide to go, as long as New York continues to battle itself over sports betting legislation, both Pennsylvania and New Jersey will continue to soak up revenue from the Empire State.