Sports betting trends in New Jersey
The state of New Jersey has always been at the forefront of gaming industry advancements. The state, which is known for its casinos, was the first to see the potential of internet gambling, allowing the debut of online casinos in 2013. Most significantly, it was New Jersey that spearheaded the campaign in 2018 to end Nevada’s effective sports betting monopoly, which culminated in the repeal of the PASPA Act and heralded a proliferation of sports betting options throughout the United States.
New Jersey has continued to lead the way in sports betting since it became one of the first states to legalize sports wagering in the summer of 2018, and going into 2022, the state is still at the forefront of sports betting developments.
New records
New Jersey had long been projected to become the first state to take $1bn in sports bets in a single month, and it finally occurred in September 2021, when the official sports betting handle was $1,011,114,311 for the month, up from $664,700,000 in August.
That jump was mostly due to the significant increase in sports betting activity related to the start of the new NFL season, as well as continuing MLB and NBA action, and it lasted throughout the fall. In October, the total reached $1.3bn, and in November, the billion-dollar barrier was broken once again.
While traditional sportsbooks contributed to part of the handle, internet wagering accounted for almost all of it. Online sports betting accounted for over $1.2bn of October’s $1.3bn transactions, as sports fans took advantage of a flourishing and competitive online betting sector.
Sports betting income also established a new high for the state. For the first time in the United States, a single state’s total income surpassed $100m, and when December’s data are added together, the ultimate revenue amount for the year may be more than $1bn, another US record.
The next challenge for New Jersey’s sports betting sector will be to target that level of handle and revenue during the rest of the year. That may be a tall order but with more operators coming online and sports betting popularity growing throughout the nation, there are realistic hopes that the Garden State can continue to improve on an already impressive revenue record.
New faces in New Jersey
Three additional sportsbooks opened in New Jersey in 2021, continuing the race for a license to provide online sports betting in the state. Barstool Sportsbook began operating in the Garden State in August, with the license of Freehold Raceway. In August, Betway, a well-known worldwide gambling operator, made its debut in New Jersey, owing to a collaboration with the Golden Nugget casino, while SuperBook made its debut via a relationship with Meadowlands Racetrack.
And given the continued success of the market, it is likely that we will continue to see new operators applying for licenses to offer betting on every sport from MMA to volleyball.
One factor that may encourage more competition and business is the recent law, signed by Governor Phil Murphy, that gives betting companies a tax credit on bonuses offered to customers in the form of free bets. These bonuses are a common promotion throughout the industry and an upsurge in bonus offers could be good news for customers, although much will depend on the conditions attached to the bonuses.
Neighborly competition
2021 was another excellent year for sports betting in the state, but going into 2022, there are some dark clouds on the horizon that could threaten difficult times ahead.
The continuing struggles of the Atlantic City casinos could have an impact on the sports betting sector, since several of the licenses under which sports betting companies operate are owned by the land-based casino sector, which has been hit badly during the pandemic.
A more immediate and severe danger is coming from the other side of the state line. The state of New York eventually got its act together and allowed mobile sports betting near the end of last year, after failing to make any progress throughout most of 2021. The license application process may not be completed in time for the Super Bowl, but with New York residents accounting for up to 25% of online sports betting revenue in New Jersey, the danger to the New Jersey industry in 2022 is evident.
Still, less than a month into the New Year and with the Super Bowl upcoming, things are looking good for sports betting fans in New Jersey and there seems to be plenty to look forward to in 2022.
