New Jersey Sees Growth in Legal Sports Betting Sector

New Jersey sports betting sites are reporting $82.2 million in revenues for May 2023

Dave Bonderoff

Last Updated: June 20, 2023 2:23 PM EDT • 3 minute read

The theme out of the New Jersey legal sports betting market over the last 18 or so months has been the negative affect that neighboring New York has had on its legal sports betting scene. But some good news for the state's best sports betting sites emerged from the New Jersey Division of Gaming Enforcement report on May's revenues.

New Jersey sportsbooks are reporting a year-over-year increase in both their sports betting handle and revenues from their wagering providers in May. Month-over-month revenues for New Jersey's best sports betting sites also ticked up, despite a slight drop in handle over the same period last year.

With no NFL, no college basketball, and no New Jersey teams going deep into the NBA or NHL playoffs, a healthy hold is the main reason for the increases seen in the New Jersey May numbers.

Let's break it all down.

New Jersey's sports betting handle for May

For the second straight month, New Jersey sports betting sites failed to hit the $1 billion handle mark. Although it is a slightly troubling sign, it is accepted that the spring/summer months traditionally lead to a downturn in sports betting activity in the Garden State.

The New Jersey Division of Gaming and Enforcement is reporting a $778.9 million handle for May. The predictable spring slide for the state's legal sports betting industry is not ideal, but it is not as drastic as we have seen in other participating jurisdictions around the country.

Roughly 95% of the overall New Jersey May sports betting handle came from the state's mobile providers.

May's sports betting total in New Jersey is a $45 million drop from the $833.9 million in bets taken in during April, but a surprising 1.6% increase from the $766.4 million in bets in the Garden State in May 2022.

May revenues impress

New Jersey sports betting sites are reporting $82.2 million in revenues for May 2023, which comes in as the second highest total this year. That number is about 13.6% higher than the $72.3 million in April and an eye-opening 33.4% spike from the $61.6 million in profits reported in May 2022.

The main reason for the profits increase, as previously mentioned, was the increased hold-rate that the Garden State sports betting providers enjoyed in May. The 10.6% hold is the largest since September 2022 and almost two full percentage points higher than the 8.7% hold seen in April.

Taxes collected from New Jersey sports betting providers came in at $10.5 million in May, up from the $9.2 million in April and the $8.8 million in May 2022. The increases are, again, due mostly because of that spike in hold-rate for New Jersey's sports betting providers.

Revenues so far in 2023 have also shown impressive year-over-year growth. $374.5 million in profits were reported by New Jersey's sports betting providers through the first five months of 2023. It is a 39% increase from the $269.4 million reported over the same period in 2022.

The state also benefits from New Jersey sportsbook promos.

Meadowlands land on top again

The New Meadowlands partnership between FanDuel, SuperBook, and PointsBet was again the most successful alliance in the New Jersey sports betting market. The three sportsbooks combined for $40.9 million in profits in May, taking the partnership over the $200 million mark in year-to-date revenues. $40.9 million represents a 13% month-over-month increase for the sports betting providers and almost half of the revenue totals reported by the New Jersey legal sports betting scene.

Resorts Digital, which consists of DraftKings and FOXBet saw $19 million in profits in May, a slight drop from the $20.4 million in April and Borgata/MGM made $6.8 million in the New Jersey market in May.

Written by:
Dave Bonderoff

Dave Bonderoff and betting go hand-in-hand. Both are characterized by "odds". Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn't found a sport yet that can't contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.