New Jersey’s sports betting market is thriving in terms of handle but is seeing something unusual at the moment—a dip in revenue.
According to the New Jersey Division of Gaming Enforcement, sports betting in New Jersey generated $27.1 million in revenue in June, after winning bets and other expenses were paid out on total wagers of $748 million. That adds up to a decrease of nearly 24% compared to last year. The main culprit? In-person sports betting at retail casinos saw a significant decline year-over-year.
Despite the revenue dip, the total sports betting handle (the amount wagered) was impressive. New Jersey reported a handle of $748.4 million, the second-highest for June 2024, trailing only New York. This represented a substantial 26.6% increase from June 2023.
While the handle soared, overall sports betting revenue decreased from $66.4 million in June 2023 to $60.1 million in June 2024. A nearly 27% handle increase and a nearly 10% revenue drop even have top sportsbooks and experts scratching their heads, but some casino executives and observers chalked it up to plain old bad luck.
They’re Not Used to Sports Betting Revenue Dips in New Jersey
It’s still an unusually large drop-off and a surprising twist for a state accustomed to seeing nothing but steady growth when it comes to sports betting revenue.
New Jersey was the state whose court challenge to a federal ban on sports betting in most of the country resulted in a 2018 ruling by the U.S. Supreme Court, clearing the way for any state that wants to offer legal sports betting. Since then, The Garden State has emerged as one of the nationwide leaders in sports betting revenue.
Why Such a Big Drop in Revenue in June?
Jane Bokunewicz, the director of the Lloyd Levenson Institute at Stockton University, keeps a close eye on the Atlantic City gambling scene. She told ABC News4 that, not all casinos or racetracks experienced declines. Interestingly, the total amount wagered during June exceeded the usual average for that month.
According to Bokunewicz, the dip in sports betting revenue this June likely results from a combination of factors: odds set by oddsmakers, public bets, and the outcomes of live events. It’s a fascinating blend of chance and strategy.
The physical Resorts casino faced a 34% decline, netting just over $99,000, while Resorts Digital (the online arm affiliated with DraftKings) saw a hefty 43.3% drop in June, bringing in $14.3 million in sports betting revenue.
June is typically a slower betting month (historically) for various reasons (like having fewer sports to bet on), which leaves the door open for more volatility.
Football Fixes Everything in Sports Betting
The good news for New Jersey sports betting operators is that football is on the way. Fueled by football, New Jersey operators posted back-to-back months of nine-figure revenue totals at the end of last year. That was the first time in state history that it ever happened.
So, despite the ups and downs that sports betting revenue can present during the summer months, there are sure to be much better days ahead.
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