When the restrictions on legalized gambling began to lift, it seemed only a matter of time before the astronomical numbers started to roll in for sportsbooks across the country. Month over month records have routinely been shattered, but October saw a staggering rise in the handle for the NJ Sportsbook while setting both state and national records in the process. With September seeing a new record set of $1.011 billion handle, October saw those go up by 28.9% to 1.303 billion.
What sparked this increase, and does it indicate that this exponential growth can remain sustainable over the long term? Knowing what goes into calculating the handle, what impacts the revenue, and how it all plays together can give us insight into the future.
The Sports Contributing the Most
Betting sports has seen a marked increase since betting became legal in New Jersey. In October, with football, the return of basketball, and the MLB playoffs getting into full swing, sports bettors had their pickings to place their bets on sports in the state of New Jersey.
With October featuring a completed handle of $499,015,796 from football and a completed revenue of $11,828,269, the total hold was brought down to 2.4% for New Jersey. So while more people were betting on football in October, they were winning more often than not across the NJ online sportsbooks. Parlays and baseball-focused betting saw increased holds and more revenue generated, with holds of 15% and 6.7%, respectively.
With parlay revenue accounting for 56.4% of the reported revenue for the month, institutions like Meadowlands, Fanduel Sportsbook, PointsBet, Resorts Digital, and Draftkings Sportsbook raked in sports betting revenue $60 million in total revenue. Sports betting in the Meadowlands, NJ, has seen significant growth across the board.
Competition With Other States
Since betting restrictions began lifting in 2018, many states started exploring incorporating legal sports betting into each state. As New Jersey has seen steady growth in total handle and revenue, states like Pennsylvania, Indiana, Tennessee, and more have started to close the gap. However, in October, New Jersey’s reported 1.3 billion handles represented 38.9% of all reported US sports betting handles, while its 84.2 million in revenue accounted for a staggering 43.5% across the nation.
How NJ Sportsbooks Look for the Year
The sports betting industry has seen enormous growth over the past year. As professional sports leagues began to function normally, people started flocking to their online sportsbook of choice in celebration. New Jersey has seen record growth in 2021, with the total number being around $8.5 billion in sports bets since the start of the year.
With September showing the first signs of increased growth over the already large numbers, the start of the NFL and NBA seasons have seen the holds and revenues continue to skyrocket towards the end of the calendar year. With the different sportsbooks offering risk-free bets for first-time users and partnerships with the major sports leagues getting more people involved in the industry has gotten easier. As more people participate in legalized sports gambling, the more the holds and revenues rise — and the potential for problem gambling.
As 2021 comes to an end, big games, NFL weekends, and Christmas day games offer long-time gamblers and first-timers plenty of opportunities to place bets on their favorite games. You can contact our toll-free, 24/7 helpline, 800GAMBLER®, to help you find virtual help meetings and many other resources. Don’t hesitate to reach out to start your road to recovery!