Despite New York, Breaking New Records in January 2023, New Jersey Pushes Its $1 Billion Handle Streak to Four
Since New York’s sports betting market came to fruition, neighboring states like New Jersey and Pennsylvania have lost a good portion of their customers.
Since New York’s sports betting market came to fruition, neighboring states like New Jersey and Pennsylvania have lost a good portion of their customers. Still, New Jersey has bounced back and is still putting up solid numbers.
One Billion Handles and New Jersey Are Dynamic Together
The Garden State closed 2022 on a high note by registering a total handle of $1.05 billion. With the Empire State breaking its own post-PASPA handle record, New Jersey managed to not miss a beat heading into the new year.
According to the New Jersey Division of Gaming Enforcement, the sportsbook registered a handle of $1.08 billion in January. Additionally, this was the fourth consecutive month the state reached the $1 billion milestone.
However, it’s important to mention that New York’s market will hinder New Jersey’s ability to reach its full potential despite the market having a low barrier to entry. The average betting activity in the state for January 2023 decreased by 20 percent compared to the year-over-year record of $1.35 billion.
Breaking Down the Results in Further Detail
In spite of the decline, the sportsbook operators combined to generate $72.3 million for January 2023, which is still higher than January 2022’s $60 million. In contrast, the house struggled against the public because the hold rate dropped from 8.3 percent to 6.9 percent.
The state collected $9.4 million in tax receipts for the month. Because the state issues a low tax rate on bookmakers that accept wagers in the market, the state has collected a total of $300 million in the post-PASPA era.
How Did the Meadowlands Group Do This Month?
Despite the market offering numerous sportsbooks in the state, the betting population was clearly leaning towards certain bookmakers over others because of their reputation. The New Meadowlands Racetrack and its mobile sportsbook partners cover the majority of the market share every month and showcased another solid month.
In total, FanDuel, SuperBook, and PointsBet generated approximately $47.4 million in revenue, representing an increase of nearly $9 million from the previous year and $4.4 million from the previous month. The trio was the biggest winner when combining both brick-and-mortar locations and online sites.
Through their partnership with Resorts Digital, DraftKings and Fox Bet earned $12.7 million in January, while BetMGM, in collaboration with the Borgata Casino, generated $6.8 million in the same month.
New Jersey continues to be a prominent contributor to the sports betting industry, and will most likely have a tough time breaking its all-time record soon, but the next opportunity to achieve that goal will take place during March Madness because the event is the most heavily wagered non-single game in the United States.
Last month, New York broke its previous handle, revenue, and tax receipts records that were held since launch month. Still, the Empire State is searching for its next opportunity to surpass the $2 billion monthly handle mark. The state nearly hit $1.8 billion last month.