New Jersey's June Reflects Promise for All US Markets

New Jersey, long considered the “poster state” of how to correctly launch a successful legal betting platform in the US, is out with their June numbers and they show that the industry as a whole could be on the brink of a major comeback. While the Garden State estimates a $300 million shortfall in sports wagers during the month of June, New Jersey recorded a respectable bump in bets taken in during the first month of summer.

“June is typically slow for sports betting so any growth is a surprise, and it appears July will return the gaming industry to something more resembling normal,” said Dustin Gouker, lead analyst for PlayNJ.com. “New Jersey will still have longer-term issues. It will take time to recover, and the gaming industry will likely be affected for as long as the world is suffering from this health crisis. But for now, optimism in the industry is growing.”

There were still no major North American sports contributing to New Jersey's betting handle in June – its impending return is justifiably creating optimism for the industry as we head deeper into summer. Three of North America's major sports are about to add to the betting menu and should immediately begin having an effect on sportsbooks around the country.

A Closer Look at the Figures

New Jersey is a state that took in $1.1 billion in bets in January and February of this year alone and had been averaging around $500 million per month in recorded bets. The state’s sportsbooks took in an incredible $4.6 billion in bets in 2019.

According to PlayNJ, New Jersey's June handle was $165 million. Although approximately $300 million below what it would have been at "normal times", the $165 million reflects a 40.1% increase from May's $117.8 million handle and more than triple April’s $54.6 million figure. Year-over-year, the June 2020 handle understandably dropped 39.6% from the $273.2 million in bets the state took in June of last year.

Gross revenues in New Jersey also jumped - from $9.9 million in May to $12.6 million in June - a 28% increase. Interestingly, the June 2020 gross revenue figures were up 30.3% year-over-year from the $9.7 figure in 2019.

As far as much-needed tax revenue for New Jersey - it came in at $1.7 million in June.

The "Non-Traditional" Keeping Jersey Afloat

Obviously, without major sports due to the coronavirus outbreak, New Jersey sportsbooks were reliant on non-traditional sports, or sports that fall in the "others" category. They certainly came through. Non-traditional refers to anything other than football, baseball, and basketball in the US.

Sports like UFC, golf, and NASCAR among others contributed an eye-opening $125.8 million in bets to New Jersey sportsbooks in June which is a major uptick from the $95.4 million those sports took in during the month of May. If “fringe sports” maintain their momentum when the major sports return, New Jersey would appear to be in great shape moving forward.

“The robust betting on nontraditional sports since the sports world has shuttered has been a surprise, but it will never completely make up for the loss of major sports,” said Eric Ramsey, an analyst for PlayNJ.com. “Futures will continue to gain steam, fueled by pent-up demand, as the opening of baseball, basketball, and hockey nears. If plans continue to move forward, July and August should produce a significant leap.”

Jersey Should Continue to Lead the Way

While it may be difficult for New Jersey to hit 2019's lofty numbers, the state looks as though it will continue to be the gold standard of the industry. Despite the lack of sports, the lack of customers' disposable income and the lack of brick-and-mortar facilities, New Jersey isn't that far off 2019's figures.

New Jersey's overall handle in 2020 sits at $1.98 billion after June's contributions, just 22.4% off last year's pace and revenues are down just 0.6% at $108.9 million even though the state effectively lost four months of quality betting time.

New Jersey brick-and-mortar casinos began to open July 2 - Atlantic City should provide a bump in the state's overall betting handle. The return of major sports in North America won't hurt either. Obviously, the viability of those leagues will be paramount for the industry going forward, as will the overall pandemic situation that has thus far been extremely difficult to quell.

We will soon see how all plays out. One thing is for sure – it will be interesting.