New Jersey Sports Betting Industry Has Worst Month in a Year
There is absolutely no denying the seasonal summer sports betting slump taking place in the US legal scene. It’s no surprise. From the data collected since the US Supreme Court overturned its blanket ban on sports betting in 2018, July has been by far the worst month for sportsbooks in the land.
Figures from the New Jersey Division of Gaming Enforcement released Monday fully support that notion. The Garden State is just the latest to identify a double-digit month-to-month loss for both their overall handle and the revenues from their sports betting scene. Limited sports betting menus during the summer period as well as bettors' focus on other things have traditionally plagued the industry during the 31-day period, and 2021 is no different.
“Casual sports bettors engage with sportsbooks less frequently in the heart of the summer,” David Danzis, lead analyst for PlayNJ.com said. “But the good news for sportsbooks is that sports betting will soon start to gain momentum as casual bettors return home from summer vacations and begin to turn their focus to football.”
July Figures
New Jersey was a jurisdiction that had experienced a typical summer sports betting slowdown, but they weren't as stark as others in the US industry... until July.
The New Jersey Division of Gaming Enforcement reported a healthy 24.5% drop in their month-to-month legal sports betting figures last month. The numbers dropped almost $190 million from June to July, from $766.9 million in June to $578.7 million in July.
July's figures beat the 2021 low of $743 million in bets for a month, posted in February, and came in just over $400 million off the record $996.3 million reported in December 2020.
June Mobile and Revenue Downturn
The strength of the New Jersey legal sports betting industry had been its mobile platform. But even the state's apps saw a stark drop in betting activity in July. While still making up 91.5% of the overall July handle in the Garden State, mobile providers produced just $529.4 million last month, down from $683 million in June - a 22.5% drop.
More bad news for New Jersey was the revenue decrease in July despite a respectable 9.5% hold. Revenues for the Jersey sports betting scene came in at $55 million in July, which is a 22.9% drop from the $71.3 million in June.
$8.3 million in tax revenue was reported by the New Jersey Division of Gaming Enforcement for their state and local coffers.
A Few More Pertinent Numbers
A broad look at the New Jersey legal sports betting industry showed a major year-over-year spike, not shocking considering the COVID crisis the country was mired in during July 2020.
$315.1 million was taken in by New Jersey sportsbooks in July 2020, 83.7% less than the $578.7 million in July 2021. Revenues over that time jumped 86% from $29.6 million in July 2020 to $55 million last month.
Year-to-date numbers reveal just how successful the New Jersey legal sports betting industry has been. So far, in seven months of 2021, sportsbooks in the Garden State have taken in a whopping $5.5 billion and have produced $423.3 million in revenue for the state's sportsbooks. It puts New Jersey on track to smash their record $6 billion yearly handle from 2020.
Sports Drivers
Unsurprisingly, it was baseball that drove New Jersey's July sports betting handle. Baseball contributed $195.4 million to the state's overall handle, which is an increase from the $169.3 million in June. Basketball was a distant second, contributing just $74.8 million in July. That's down from $190.9 million in June.
Parlays bailed New Jersey sportsbooks out to the tune of $134.1 million in July.
Unfortunately, the Olympics didn't really produce the way many analysts hoped. "The Olympics didn't cause a spike in volume, which was held down even more by the significant difference in time zones," said Eric Ramsey, analyst for the PlayUSA.com Network, which includes PlayNJ.com. "The NBA Finals helped the state's sportsbooks avoid a steeper decline, and the Olympics did offer sportsbooks a chance to reach new customers, which can be valuable down the road."
Looking Ahead
New Jersey looked somewhat mortal in July, but the expectation is that they take the reigns as the untouchable, unquestioned King of the Bet-Friendly states again before too long. New York's expansion of their platform could cut into their numbers but regulators in the Garden State don't seem too worried.
The $996 million record handle for the New Jersey scene will be in jeopardy as soon as September, almost guaranteed. But disappointing August numbers are on tap first.
