It’s been another big year for the New Jersey Sports Betting industry in New Jersey. October saw sportsbook operators’ total handle for the year smash the $10 billion mark. With a busy end to 2024 and an exciting start to 2025 ahead, it’s an exciting time for those running sportsbooks in the state and the amounts of gambling tax being received.
Legalizing Sports Betting in New Jersey
It was in 2018 when sports betting became legal in the state of New Jersey. The state had long campaigned for a change in the law. Until that happened, it was the federal government who had the final say on whether to go down the legal route.
Then came a groundbreaking ruling by a US Supreme Court Judge. It declared that the final say on the matter should be with each individual state. New Jersey was quick to make sports betting legal. The companies operating in the state have now taken over $56 billion in bets since they launched according to NJBet, a guide to legal online betting in the Garden State.
The Current Sports Betting Landscape
Figures are released each month by the New Jersey Division of Gaming Enforcement (DGE). Up until the end of October, just over $9 billion had been paid out to gamblers who had placed successful bets.
October’s Performance: A Closer Look
Let’s take a look now at the statistics for October. Revenue for the month was $77.5 million, a slow month for sports betting when compared to 12 months ago. That total was 16% lower than recorded in the same period last year. $1.31 billion in bets was taken and that’s a fall of 12.4% compared to October 2023.
Despite the fall compared to last year, the revenue figure for the first ten months of the year reached $913 million. That’s a total which is 13.9% higher than recorded for January-October in 2023. The estimate for the full calendar year is $1.08 billion.
Seasonal Variations in Sports Betting Revenue
It was surprising that there was a fall in revenue for October. It is accepted that the monthly results will fluctuate depending on which of the major sports are in season. However, in October the four major sports that American gamblers bet on were all in full flow. There was reduced betting activity during the 31 days of October but better figures should be on the way in the coming months.
Projections for November and December
November and December 2024 should see increased figures thanks to betting on the NFL and college football playoffs. A repeat of the performance in the final couple of months of 2023 would be impressive.
November 2023 saw $1.62 billion in legal wagers which beat the record monthly handle of $1.35 billion. A repeat of that figure for 2024 would certainly please the state’s sportsbooks and those who receive the gambling tax revenue. December of last year produced a monthly handle of $1.28 billion with revenue of $109.4 million
A Promising Start to 2025
Then comes the beginning of 2025 should produce better results. Gambling sites are eagerly awaiting the Super Bowl which always produces massive amounts of revenue.
Top Performers in New Jersey Sports Betting
FanDuel continues to be the top earner in New Jersey. October saw them earn revenue of $34.8 million, which was the highest figure for the month with DraftKings in second place on $22.2 million.
Those two sportsbooks do dominate the revenue figures earned in New Jersey. There were five other sportsbooks that recorded revenue of at least $1 million in October. BetMGM was in third place with $7.26 million followed by bet365 on $3.658 million.
The UK company was just ahead of Caesars on $3.149 million. ESPN Bet and Fanatics were the only other companies to earn $1 million in revenue with $1.58 million and $1.6 million respectively. Just falling short of $1 million were BetRivers on $900.826.
Challenges for Emerging Sportsbooks
October wasn’t such a great month for Fanatics who only earned $1.6 million in revenue. They recorded a figure of $3.4 million in August but $1 million less in September and an even lower total in October. It was in May of this year that Fanatics Casino NJ took over the PointsBet license.
DGE statistics show that parlays (betting on more than one event) contribute over half to the total sports betting revenue in New Jersey. The figure for October was $530,491,945. The sportsbooks have an 18.5% win rate.
A Key Role in New Jersey’s Economy
Sports betting continues to play a key role in the NJ gambling industry, particularly online. The long wait for online sports betting to become legal has certainly proved to be well worth it.
