New Jersey’s sportsbooks did not disappoint in their first full month of operation, increasing wagers dramatically in June while nearly doubling the number of open sportsbooks to five. Such an increase was to be expected and a sign of what lies ahead, according to analysts for PlayNJ.com.
“Considering the rate at which sportsbooks are opening in New Jersey, it is certainly not surprising to see a steep increase in revenue and the amount of money wagered,” said Dustin Gouker, lead sports betting analyst for PlayNJ.com. “The underlying data points are impressive, though. And it’s important to remember that this is the industry’s infancy. A mature, fully established New Jersey sports betting market could field billions of dollars in annual wagers.”
New Jersey’s sportsbooks generated $3.8 million in gross revenue on $40.7 million in wagers in July, according official reporting released Tuesday. Both metrics are up from the $3.5 million in gross revenue generated in June on $16.4 million in wagers completed.
The first full month of operation for Monmouth Park, Borgata, and Ocean Resort Casino — which all opened June 14 or later — and the addition of two new sportsbooks in July were the key drivers to the growth.
FanDuel Sportsbook at Meadowlands Racetrack opened on July 14, placing a legal sportsbook on the doorstep of New York City. Caesar’s Entertainment opened the sportsbook at Bally’s Atlantic City on July 30, and later opened the book at Harrah’s Atlantic City on Aug. 1.
Of the existing books, Ocean Resort led the way with $1.03 million in gross revenue by generating $33,444 per day. Ocean Resort opened June 28. Monmouth Park tallied $856,280 in July gross revenue, generating $27,622 per day. That was down from $142,448 per day in June and $2.3 million in gross revenue in 16 days of operation. Borgata tallied $562,280 in July revenue, up from $986,831 in June, and $18,138 per day.
“Revenue growth slowed at the existing books, but we expect it to hasten once football begins later this month,” Gouker said. “August will be fun to watch, as it will give us our first full month-over-month comparisons.”
The new sportsbooks fared well. FanDuel Sportsbook posted $1.35 million in July gross revenue, leading all books by generating $43,790 per day. Bally’s AC generated $17,788.
The addition of legal sportsbooks should only continue. Resorts is expected to open its sportsbook in days, and at least three more are in either the planning or construction phases. In addition, DraftKings became the first operational online sportsbook earlier this month.
“By the end of the year, New Jersey should have perhaps as many as a dozen online sportsbooks,” Gouker said. “With football season coming soon, we expect the pace of conventional and online sportsbooks entering the market to only increase.”
LEGAL ONLINE GAMBLING
New Jersey’s legal online gambling industry continued its winning streak, too, generating a record $25.9 million in gross revenue in July, up 14.2 percent from $22.7 million in June. A 25.8 percent increase from $20.6 million in July 2017, July 2018 marks the 45th consecutive time that monthly gross revenue has increased year-over-year.
Legal online gambling has generated an average of $23.6 million a month and $165.4 million in annual revenue so far this year, putting the industry on pace to shatter the $245.6 million annual revenue mark set just last year. And with online sports betting set to take off in August, the rate of growth should only increase.
This has proven to be critical to once struggling Atlantic City.
“Atlantic City casinos cracked 30,000 employees for the first time since 2014, proving once again that online gambling hasn’t cannibalized New Jersey’s land-based casinos,” said Steve Ruddock, lead online gambling analyst for PlayNJ.com. “Add more than $155 million in additional tax revenue that online gambling has generated since it began in 2013, and online gambling has proven to be an unqualified success.”
Some other important online gambling metrics from the July report:
With July’s collection of $4.5 million in tax revenue, online casinos have now generated $155.4 million for New Jersey since the industry was born in November 2013.
Now with $887.9 million in lifetime revenue, the industry could hit the $1 billion mark by the end of the year.
The industry generated $835,404 per day in the 31 days in July, up from the 756,136 per day in the 30 days in June.
Market leader Golden Nugget — home to the Golden Nugget, Betfair, and SugarHouse online casino brands — generated a record $9.3 million in July, up from the $8.4 million gathered in June.
Online casino games generated $24.04 million in July, up from $20.9 million in May. Online poker hit $1.9 million in June, up from $1.8 million in June
Newcomers Hard Rock Rock Atlantic City generated $329,650 and Ocean Resort Casino tallied $249,805 in July.
For more information and analysis on regulated online gaming in New Jersey, visitPlayNJ.com.
source: Press Release
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