New Jersey Shows Sportsbook Revenue Steady Growth through the Global Pandemic
New Jersey was destined to be a market leader in sports betting in the United States. The business is booming because of a recent court battle in New Jersey that resulted in the repeal of the Professional and Amateur Sports Protection Act (PASPA), thereby allowing states other than Nevada to legalize sports betting.
New Jersey had the biggest yearly sports betting handle of any state in 2021, beating Nevada by almost $1.5 billion in wagers. And, according to iGaming NJ, the state’s online gaming revenue has reached $1 billion, which not only showcases an impressive milestone but also proves iGaming’s worth to the state as an essential tax revenue source. Industry’s fast development also brings new job opportunities to the table to streamline economic growth of the Garden State in the challenging circumstances of today.
Will New Jersey maintain its lead in 2022, or will Nevada make a comeback as the pandemic subsides?
NJ sports betting sets new records
According to official figures, New Jersey’s sportsbooks took in a record $996.3 million in December wagers. This broke the state’s all-jurisdiction record of $931 million established in November, and it was the fifth month in a row that the state has broken an all-jurisdiction record.
The bets in December brought in a total of $66.4 million, which was a new high. Handle increased by 78.6% year over year from $557.8 million in December 2019, while revenue increased by 125.6 percent from $29.4 million in December 2019. The bets in December generated $8.3 million in state taxes.
On November 17th, 2021, New Jersey’s burgeoning sports betting sector shattered its own national record set in October for the most bets placed in a single month, surpassing $1.3 billion.
Online sports betting changes the landscape of the industry
Internet gambling income has reached $127 million, up almost 36% from a year ago, while sports betting revenue reached $84.1 million, up nearly 44% from last October after winning bets were paid out and other expenditures were deducted.
In December, revenue from New Jersey’s online casinos and poker rooms reached a new high of $99.5 million, up 101.6 percent from $49.3 million in December 2019.
In 2020, online casinos generated $970.3 million in revenue, up from $482.7 million in 2019, and generated $145.7 million in state taxes. The surge in online gambling revenue was important, with retail casino revenue down $1.2 billion year over year.
Year-to-year growth of NJ sportsbook revenue
Since its introduction in June 2018, New Jersey’s iGaming market has witnessed steady growth. New Jersey concluded 2020 as the largest sports betting market in America, with over $6 billion in wagers made, after registering more than $4.5 billion wagered in 2019 – the first full calendar year of legal betting.
2018 – Total Handle – $1,247,307,720; Revenue – $94,022,392; State Tax Revenue – $11,597,775.
2019 – Total Handle – $4,582,898,150; Revenue – $299,326,239; State Tax Revenue – $39,594,127.
2020 – Total Handle – $6,016,968,399; Revenue – $398,521,093; State Tax Revenue – $50,891,397.
2021 – Total Handle – $10,936,041,596; Revenue – $815,759,995; State Tax Revenue – $100,244,193.
Despite the hurdles posed by the COVID-19 outbreak, the New Jersey sports betting industry grew by 31% year over year in 2020, hitting a new high. NJ is showing no signs of slowing down as we approach 2022.
Bottom line
New Jersey is now the throbbing center of American sports betting, and it appears that it will stay that way for a long time. The Garden State is presently dominated by online sports betting opportunities, and as the epidemic subsides, don’t be shocked if bettors return to the Atlantic City and other retail sportsbooks.
