On June 11th, 2018, Governor Phil Murphy signed a bill into law that made sports betting legal in the state of New Jersey. Shortly after signing, Murphy proclaimed, “This is the right move for New Jersey; this is going to strengthen our economy.”
It’s been nearly five months since betting for sports became legal in Atlantic City and the rest of the Garden State — so, was Gov. Murphy right? Has sports betting made a substantial impact on New Jersey’s economy? Early numbers collected by the New Jersey Division of Gaming Enforcement show a steady rise in revenue month over month, June through September. Below we take an in-depth look at how each month performed and what the future of sports betting in New Jersey may hold.
In the first 17 days that sports gambling was officially legal in NJ, bettors wagered $16.4 million, which grossed the state a hefty $3.5 million in total revenues. These numbers take into account completed events and future events between June 14th – June 30th. The only establishments open for sports betting were Monmouth Park Racetrack, the Borgata, and the Ocean Resort Casino. All land-based sports betting revenue is subject to an 8.5% state tax, and future online/mobile betting revenue (which became available mid-July) is subject to a 14.25% tax.
The five operators running sportsbooks in the month of July generated more than $3.8 million in revenues, which is the state’s first full month of revenues since sports betting was legalized. The Meadowlands and Bally’s joined Monmouth Park Racetrack, the Borgata, and the Ocean Resort Casino, leading to a small increase in revenue from the previous month. It’s important to note, though, that July is the leanest month of the U.S. sports calendar, with baseball being the only major sport available to bet on. These numbers also do not reflect online or mobile wagering, as it was not available yet.
By the end of August, sports bettors in New Jersey had placed over $95 million in total wagers, both online and on land. August was the first month that mobile and online sports betting revenue could be taken into account, and as you can see, it generated a ton of additional revenue. Three newcomers joined the previous five retail sportsbooks which included the Golden Nugget, Harrah’s, and Resorts. Online and mobile sports betting was responsible for a third of the total revenue for August, which shows how reliant the state is going to be on sports betting outside of the casino walls.
Revenue nearly doubled in September, reaching $184 million of sports wagers taken during the month (an $89 million increase). Most of September’s revenue was from online/mobile wagering, which held steady at $104 million. How much money did the state of New Jersey take home from tax revenue? A cool $2.6 million landed in the state’s lap. All casinos we had previously mentioned, aside from Harrah’s, are generating revenue both digitally and on land, making September the best month by far in terms of money for the state.
If these numbers are of an indication of what’s to come for the sports betting marketplace in New Jersey, it looks as though it will continue to grow, with mobile and online sports betting leading the way.
Betting on sports with friends has become an American pastime that most can start and stop whenever they please. For some, however, it’s not as easy. If you’re struggling with a sports gambling disorder, know that there is hope, support, and treatment, and it’s only a phone call away. When you call the 1-800-GAMBLER hotline, New Jersey residents are presented with several treatment and rehabilitation options that remain 100% confidential. Call today and start living your life again tomorrow.