New Jersey Breaks Record with $115 Million in Sports Betting Revenue
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New Jersey has emerged as the sports betting capital of the world, recently surpassing Nevada as the state with the largest all-time handle in a month. In November, New Jersey reported $1.26 billion in sports betting handle, which fell just short of the country’s single-month record-high of $1.3 billion set in October. However, November was arguably a month of further growth when you consider October had five full weekends (more football wagering) while November had just four. With already over $9.7 billion in wagers in 2021, New Jersey is expected to finish as the first state to handle over $10 billion in sports bets in a single calendar year.
Record-High Revenue Numbers
While New Jersey’s total handle in November didn’t quite reach the high watermark set in October, the state set a new record with $114.8 million in sports betting revenue. That made New Jersey the first state to ever surpass $100 million in operator revenue in a single month. In November 2020, New Jersey brought in $50.6 million in sports betting revenue, which felt like a lot at the time. However, the state is up over 125% in revenue year-over-year and continues to reach new heights in the burgeoning sports betting industry.
Most Popular Sports
With the NBA season well underway and player prop betting growing in popularity, basketball was the most popular sport for betting in New Jersey in November, with over $499 million in wagers. Sportsbooks have handled $2.3 billion in basketball bets year-to-date, and with a 3.4% hold rate, the state has brought in $78.6 million in revenue from basketball. Football followed closely behind with $401.3 million in wagers in November and has generated $1.6 billion in bets year-to-date. A 4.1% hold rate has generated $65.6 million in revenue on football bets.
As expected, parlays are the most profitable form of betting for operators as they have a massive 18.3% hold rate that generated $406 million in revenue on $2.2 billion in bets placed year-to-date. All other sports brought in $11.6 million in revenue on a 5.3% hold rate of $2.2 billion in wagers. Sports bettors famously lose more than they win on parlays, and while you may see some ridiculous bet slips on Twitter from time to time, keep in mind this is the exception to the norm.
Will New York’s Launch Slow Down New Jersey’s Success?
New York is on its way to approving sports betting, with the New York State Gaming Commission announcing nine winning bids in the state on November 8, 2021. Sportsbooks will face a 51% tax rate in New York, by far the highest in the country, but that didn’t deter most operators from expressing interest in being a part of the market in the fourth-most-populated state in the country. Studies have shown New York is losing millions of dollars in potential tax revenue to its neighbor state. The massive growth in New Jersey has been a significant catalyst for New York’s ongoing legislative progress. When New York does launch its sports betting market in late 2021 or early 2022, it’s expected that New Jersey will see somewhat of a dip from bettors currently crossing state lines to place bets.
