New Jersey, a forerunner for US sports betting and the expectations for 2020

Sportsbooks became legal in 2018

New Jersey sports betting launched in June 2018, when Gov. Phil Murphy signed NJ sports betting into law. The first legal bets were placed three days later. The first online/mobile sportsbooks went live in July and immediately became one of the most robust markets in the country. Legal sportsbooks exist both at casinos and racetracks, as well as online via mobile apps throughout the state. Every casino and racetrack can offer sports betting, provided they are approved to do so. That includes all of the licensed Atlantic City casinos: Borgata, Bally’s Wild Wild West, Caesars, Golden Nugget, Hard Rock AC, Harrah’s, Ocean Resort, Resorts Tropicana, as well the three racetracks elsewhere: The Meadowlands, Freehold Raceway and Monmouth Park, which was actually the first NJ property to introduce legal sports betting in June 2018. The NJ sports betting law includes provisions for online and mobile betting anywhere within the state’s borders. Each property can deploy as many as three individual brands, the first of which launched in August 2018. NJ online casinos and poker sites have been operating since November 2013.

14 online/mobile sportsbooks licensed

There are currently 14 online/mobile sportsbooks licensed for use in NJ: 888 Sportsbook,    BetAmerica Sportsbooks, Caesars Sportsbook, DraftKings Sportsbook, FanDuel Sportsbook,     FoxBet Sportsbook, Golden Nugget Sportsbook, Hard Rock Sportsbook, betMGM portsbook,     PointsBet Sportsbook, Resorts Sportsbook, SugarHouse Sportsbook, theScore Sportsbook,    William Hill Sportsbook.

New records in 2019

New records and more growth are the themes of 2019 when it comes to New Jersey’s sportsbooks and online casinos. The state’s retail and online sportsbooks when combined with online casinos and poker generated nearly $800 million in revenue last year, resulting in the state’s annual handle reaching approximately $4.5 billion and “sending New Jersey into 2020 with plenty of momentum,” according to PlayNJ.com analysts.

“Online sports betting and casino gambling should continue on or near its current growth trajectory in 2020,” Dustin Gouker, lead analyst for PlayNJ.com, said. “Online growth will continue to be a net win for New Jersey’s gaming industry.” For 2019, the sportsbooks combined to generate revenues of $229.4 million, yielding $36.5 million in state taxes. “2019 could very well go down as the last year that New Jersey was eclipsed by Nevada,” Eric Ramsey, analyst for PlayNJ.com, said. “From its proximity to the New York market to its pioneering online sports betting infrastructure, New Jersey’s positives as a sports betting market will continue to fuel its growth.”

Important growth in January 2020

New Jersey sports betting stayed hot in January with $540 million in wagers, down only 3.2% from December but up 40% from last January. It marks the third straight month in which the state has generated more than half a billion in handle. Mobile remained a crucial piece of the sports betting experience as online accounted for 87% of all handle. That’s down slightly from 88% in December.

Sports betting revenue also grew significantly over last year, up 185% to $53.6 million, according to the New Jersey  Division  of  Gaming  Enforcement. The month starts New Jersey out on a strong foot to beat last year’s record handle of nearly $4.6 billion.

Basketball and football

Basketball is the top sport in New Jersey in terms of handle to start 2020. Completed event handle was $178 million for basketball compared to $129 million for football. Football, of course, didn’t just include the NFL playoffs in January. There were a handful of college bowl games, including the National Championship between Clemson and LSU.

There was also nearly $100 million bet on parlays, which had a win percentage of 19% for the month.

Sports betting helping online gambling

There’s still a fairly strong correlation between online sports betting and online casino gambling. Online casino revenue grew 64% to $55.1 million compared to last January. That’s a new record with January, marking the first time online casino revenue ever broke the $50 million mark.

Promising start to 2020 for Atlantic City

The Casino Association of New Jersey announced on Wednesday that Atlantic City has been churning out solid gaming revenues since the start of 2020, according to the most recent Division of Gaming Enforcement report.

January 2020, according to the report, marked the 20th month in a row for gaming revenue increases in the resort city, reaching $270.5 million, a 22.6% increase over the same period last year.

“2020 is off to a promising start for Atlantic City,” Steve Callender, president of the CANJ, said. “The city continues to see increased sports betting and tourism, two important economic drivers. I look forward to a year of continued progress in 2020.”