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

New Jersey sports betting saw a handle of less than $1 billion in May for the first time since August.

The New Jersey Division of Gaming Enforcement reported a decrease in wagering activity from the previous month, but an increase compared to the previous year. Revenues for the leading sports betting apps in New Jersey were lower in May 2024 than in May 2023 and April 2024.

April marked the eighth consecutive month with monthly handles surpassing $1 billion, but this streak was broken in May.

The best sports betting sites in New Jersey have completed six years in operation, making it the first jurisdiction outside of Nevada to allow legal sports betting. The New Jersey market has ended its six-year run with a lifetime handle of $51.71 billion, the highest among all states with legal sports betting.

New Jersey comes in second place for lifetime operator revenues at $3.89 billion, just behind the state of New York.

New Jersey brings in $838.9 million handle in May

In May, New Jersey’s top sportsbooks collectively received $838.9 million in bets, marking the lowest monthly total since August but still showing a 7.7% increase from the $778.85 million reported in May 2023.

In May 2024, New Jersey saw a significant decrease in betting total compared to April, with a drop of over $205 million. The legal sports betting handle for the year so far is $6.01 billion, showing a 31.6% increase from the same period last year.

$78.8 million in adjusted gross revenue for operators

In May, New Jersey sportsbooks generated $78.8 million in adjusted gross revenue, marking a 4.2% decrease compared to the $82.2 million earned in May 2023. Despite a larger handle this year, profits were lower. Additionally, there was a significant month-over-month decline of almost $30 million from April’s total of just over $106.2 million.

The decrease in profits can be linked to a 9.4% win rate for state providers, which is considered a respectable number. The hold for May 2023 was 10.5%, slightly higher than the 10.2% hold in April.

Underscoreg revenues for New Jersey providers have reached $513 million year-to-date, showing a 37% increase compared to the same period in 2023.

In May, adjusted gross revenues from New Jersey sportsbook promos and deductions led to a reported $10.4 million in tax contributions. This brought the year-to-date total taxes paid in the Garden State to $66.5 million, an improvement of $18.3 million compared to the same period in 2023. The state is now just $7.9 million away from reaching the lifetime $500 million mark in tax contributions.

FanDuel rules while Fanatics check in seventh

Fanatics’ debut in the New Jersey sports betting market was slightly disappointing, as the new operator only brought in about $2 million in revenues, placing them seventh in the rankings for the first month of operation after taking over from PointsBet. Despite an extensive promotional and media campaign, Fanatics did not meet expectations in their initial month.

In May, FanDuel led Garden State sportsbooks by generating $36.7 million in profits, surpassing $200 million in year-to-date revenues. DraftKings came in second with $22.1 million, leaving the other 20 providers far behind in revenue.

In terms of revenue, BetMGM came in third place with nearly $5 million, while bet365 maintained its growth with $3.5 million in May revenues. Caesars completed the top five with almost $3 million in profits for the month.

In May, ESPN BET posted revenues of $2.6 million, making it the top earner. Fanatics ranked seventh, while BetRivers was the only other sportsbook in New Jersey to report revenues exceeding $1 million, with $1.2 million in earnings last month.