Sports betting earnings in NJ have hit $1 billion in February, showing a considerable increase from last year.
However, after a spirited start to 2024, there was a noticeable cooling down in February for New Jersey sportsbooks. The shift wasn’t unexpected, following the industry’s cyclical nature, yet it brought about a mixed bag of results. The February report published by the New Jersey Division of Gaming Enforcement revealed the ups and downs of the state’s legal sports betting industry.
There was a visible drop in month-over-month handle, hold rate, and revenues for sports betting apps and retail providers. Nonetheless, the flip side revealed YoY increases in monthly handle and revenues.
In February, New Jersey’s sports betting earnings hit a high note, with $67.6 million in revenue from a whopping $1.08 billion in bets. This impressive performance stems from the combined earnings of 18 mobile sportsbooks, Atlantic City’s casinos, and racetracks across the state.
A significant chunk of this revenue, about $33.9 million, came directly from AC’s casinos and their online partners. When comparing these figures to the same time last year, the growth is undeniable. Statewide, sportsbook revenue jumped by 23.7%, while Atlantic City casinos and their partners saw a staggering 69.8% increase.
Let’s throw it back to January 2024 NJ casino revenue – that was a record-breaker, with almost $1.72 billion in bets and over $170.7 million in revenue. That month now holds the crown for the best month ever in NJ’s sports betting history.
Despite the crescendo reached in January, February witnessed a significant downturn in New Jersey’s sports betting earnings. Leading the charge during this period was Meadowlands Racetrack, home to FanDuel, SuperBook, and PointsBet Casino under its NJ portfolio. Meadowlands, despite experiencing a drop to $33.5 million from January’s monumental $109.3 million, remained at the forefront.
Resorts Digital, with DraftKings Casino as its partner, clinched the second spot in revenue within the list of NJ sportsbooks, bringing in $24.2 million in February. This marked a 40% decrease from the previous month.
The ripple effect was felt more acutely by other New Jersey sports betting providers, with Freehold Raceway leading the losses at $2.3 million. Consequently, this was a substantial hit for the raceway, which operates a three-skin partnership including ESPN BET, PlayUp, and betPARX.
However, the downturn wasn’t isolated to Freehold Raceway alone. SportTrade, Prophet, and the Golden Nugget/Betway collaboration faced their own set of challenges, posting significant losses in the February New Jersey gambling revenue. These figures, while sobering, are part of the broader ebb and flow characterizing sportsbook revenue and the industry as a whole.
As we look ahead, optimism remains high for a recovery in March, stimulated by the excitement surrounding March Madness. This event is anticipated to set new records for the state’s sports betting providers. Furthermore, it has the potential to surpass the achievements of the past months. Our experts at Jersey Casinos remain confident in the resilience and adaptability of the New Jersey sports betting market. Thus, we eagerly await the outcomes of what promises to be a great month for sports betting earnings.
