New Jersey Slips Under $1 Billion in Sports Betting Handle in May

For the first time since August, New Jersey sports betting posted a sub-$1 billion handle month in May.

According to the New Jersey Division of Gaming Enforcement May report, wagering activity was down month-over-month but up year-over-year in the state. Revenues for the top New Jersey sports betting apps were lower than in May 2023 and April 2024. 

April was the eighth straight month of monthly handles that exceeded $1 billion, a streak that was snapped with May’s totals.

With May numbers in the books, it closes the door on six full years for the best sports betting sites in the Garden State. The first jurisdiction outside of Nevada to allow for legal sports betting, the New Jersey market ended six years of operation with a $51.71 billion lifetime handle, tops among all states that currently have their own legal scene.

New Jersey ranks second in lifetime operator revenues at $3.89 billion, right behind neighboring New York.

New Jersey brings in $838.9 million handle in May

New Jersey’s best sportsbooks combined to take in $838.9 million in bets in May. That marks the lowest monthly sports betting total since August. It does, however, represent a 7.7% year-over-year increase from the $778.85 million reported in May 2023.

May 2024’s betting total is a more than $205 million month-over-month drop from the $1.044 billion handle from April. Year-to-date, New Jersey’s legal sports betting handle now stands at $6.01 billion through five months of 2024 - a 31.6% improvement from the same period last year.

$78.8 million in adjusted gross revenue for operators

New Jersey sportsbooks combined for $78.8 million in adjusted gross revenue in May - a 4.2% year-over-year decline in profits from the nearly $82.2 million from May 2023, despite this year’s handle being bigger. It is also a nearly $30 million month-over-month drop from just over $106.2 million in April.

The profit decline can be attributed to a 9.4% win rate for state providers, which is actually a respectable number. The hold in May 2023 was 10.5%, and it was 10.2% this April.

Year-to-date sportsbook revenues for New Jersey providers stand at $513 million, a 37% improvement from revenue totals through the first five months of 2023.

A reported $10.4 million in tax contributions resulted from adjusted gross revenues in May, after New Jersey sportsbook promos and deductions. It put the year-to-date taxes paid total in the Garden State at $66.5 million, which is $18.3 million better than the first five months of 2023, and just $7.9 million shy of the lifetime $500 million mark.

FanDuel rules while Fanatics check in seventh

It was the first month of operation in the New Jersey sports betting market for Fanatics since it took over from PointsBet. From the numbers, it was a slightly disappointing debut. Despite being the new kid in town with a promotional and media blitz, Fanatics finished seventh in terms of revenues with about $2 million in winnings.

FanDuel easily topped revenue figures among Garden State sportsbooks with $36.7 million in May profits. It took FanDuel’s year-to-date revenues in the state past the $200 million plateau. DraftKings finished second in terms of revenues with $22.1 million, while the other 20 competing providers paled in comparison.

BetMGM was a distant third with just under $5 million in revenues, while bet365 continued its trajectory with $3.5 million in May revenues. Caesars rounded out the top five with nearly $3 million in profits last month.

ESPN BET reported $2.6 million in May revenues. Fanatics, as mentioned, was seventh, and BetRivers was the only other Garden State sportsbook to report seven-figures in revenues last month at $1.2 million.