The volume of sports betting in New Jersey is starting to look more like it did before neighboring New York began allowing mobile wagering.
Numbers released on Thursday by the New Jersey Division of Gaming Enforcement show the state's retail and online sports betting sites handled $1.06 billion in wagers during October, up from $866.7 million in September. Approximately 93% of last month's wagering in New Jersey was via the internet.
However, October's handle was lower than that of October 2021, when wagering in the state was approximately $1.3 billion. Moreover, October was the first billion-dollar handle month in 2022 since March for operators in the Garden State, whereas both September and October of 2021 topped $1 billion in wagering.
The likely culprit for the more lackluster start to football season for New Jersey bookmakers is the launch of online sports betting in nearby New York. Since May, New Jersey's monthly handle has been trending below its 2021 wagering levels.
Another troubling trend?
Although a return to more than $1 billion in monthly handle is nothing to sneeze at, a more troubling trend for New Jersey may be the weaker revenue numbers. The state's books reported sports-wagering revenue of $77.9 million for October, down 7.4% from October 2021 and a win rate of 7.3%.
As of the end of October, total sports-betting revenue was $594.8 million, a decrease of 7.3%. The lower revenue means less tax money for the state from legal sports betting, although operators may be finding increased receipts in other states, such as New York.
As of the end of October 2021, New Jersey's tax revenue from sports betting added up to around $80.5 million. As of the end of October 2022, New Jersey's sports-betting tax revenue amounted to approximately $76.1 million.
Yet some things remain the same.
As per usual, Meadowlands Racing and Entertainment was the top sports-betting licensee in New Jersey in terms of monthly revenue. The racetrack and its online sportsbook partners — FanDuel, PointsBet, and SuperBook Sports — generated $45.4 million in revenue for September.
