Sports betting revenue for the state of New Jersey fell to $11.7 million in October, a 51 percent decline from September, when casinos and racetracks contributed $24 million. The plunge for the Garden State’s government pockets can be attributed to a simple twist of bad luck.
Sports bettors wagered a total of $260.7 million in October, which accounts for a $76.8 million (41.8 percent) increase compared to September, according to a report released Thursday by the New Jersey Division of Gaming Enforcement. New Jersey’s 10 licensed bookmakers took home just 4.5 percent of the money wagered in October, compared to 13 percent of money in September according to the Philadelphia Inquirer.
In total, New Jersey has produced a gross revenue of $52 million from sports wagering since the state legalized sports gambling in mid-June, while the state has collected $5.5 million in taxes from sports betting. The state reported total gaming revenue for October of $239.1 million, up $32.7 million (15.8 percent) compared to the same month last year
Sports bettors have gambled a total of $597 million in New Jersey since June. Of the $260.7 million spent on sports gambling in October, $174.3 million was placed via online sports betting. Research firm Eilers & Krejcik Gaming said in September that it expects online sports betting make up about 75 percent of New Jersey’s total revenue.
SportTechie Takeaway
New Jersey’s first few months of legalization show that while sports betting can be very lucrative for states, revenue returns will be inconsistent from month-to-month because of the inherent nature of gambling. This past Thursday, lawmakers and sports gambling business insiders gathered to discuss the future of sports betting at the U.S. Sports Betting Policy Summit in Washington, D.C. More states are expected to soon follow the lead of New Jersey—and the five other U.S. states—to legalize sports gambling, and even an inconsistent revenue boost could well sway them to move more quickly.