New Jersey Sports Betting Revenue Declines in May
The New Jersey Division of Gaming Enforcement reported a combined gross revenue of $78.8 million from all the in-state gambling operations in May. This represents a 4.2% decline from May 2023’s $82.2 million.
Additionally, May’s revenue saw a significant 26% drop from April’s impressive $106.2 million. The total handle for May was $838.9 million, marking the first month in 2024 where the handle fell below $1 billion.
Performance Analysis
Despite the solid 9.4% hold in May, it was below the double-digit win rates posted in the previous month and May 2023. This decline was attributed mainly to the end of the NBA and NHL playoffs, which drove substantial betting activity in April.
Overall, New Jersey’s sports betting operators have had a strong year. The total handle for the first five months of 2024 exceeded $6 billion, with revenue surpassing $500 million.
The $513 million in profits marked a 37% increase compared to the same period in 2023, which saw $374.5 million in revenue. Tax revenue for the year is also up, reaching $66 million, which is $18 million more than the previous year.
Market Shifts and Operator Performance
Fanatics Sportsbook struggled in its initial weeks after taking over PointsBet’s license, holding only 2.3% of the market and generating $2 million in gross gaming revenue (GGR) in May. This is a stark contrast to PointsBet’s performance, which had a 31.6% market share in April with $32.9 million in GGR.
FanDuel maintained its top position in May with $36.7 million in GGR. DraftKings followed with $22.1 million, while BetMGM was third with $5.6 million, reflecting a 17.1% year-over-year decline.
Caesars generated close to $3 million in gross revenue through its partnerships with Tropicana Casino & Resort and Monmouth Park. ESPN Bet reported $2.6 million, showing a gain of half a million from April.
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