New Jersey

New Jersey Sports Betting Continues to Dip

There was once a time when everyone in the United States sports betting industry looked to New Jersey for the monthly report. New Jersey was shattering handle records seemingly every month as they became the top sports betting market in the United States.

That is no longer the case, as New Jersey could actually fall all the way down to third place soon. The latest report from July 2022 shows that the state of New Jersey had a total sports betting handle of just $531.9 million, and the revenue was $45 million.

Not only is the state of New Jersey seeing sports betting dip each month, but the total handle is also falling compared to the 2021 totals. This is the third straight time that the sports betting handle has been lower than it was exactly 12 months ago.

New York posted a total handle of $800.8 million for the month of July, and that was the lowest total for that state. New Jersey is clearly losing some business to New York, but it shouldn’t be happening at the rate at which it is.

Illinois was within $5 million in total sports betting handle of New Jersey in both May and June, and it will likely fly past New Jersey for July. New Jersey continues to have plenty of sports betting options for bettors, but those sportsbooks just aren’t seeing a ton of action.

Reasons For the Decline

Leaders of the sports betting industry in New Jersey continue to try and find some answers as to why this decline is happening so rapidly. Losing bets to the state of New York is hurting the overall size of this market, but the state is still placing some of the blame on COVID as well.

June and July are always slow months on the sports calendar, and that usually has a negative impact on sports betting. That wasn’t the case in 2021, though, as several professional sports leagues were playing games during the Summer after traditional schedules got messed up.

The rest of the country has seen significant dips is total sports betting handle as well, but not at the rate that has been found in New Jersey. June was the most alarming month for the state as the total handle dropped over 17% from what was wagered during June 2021.

Sports betting leaders in New Jersey will be keeping a close eye on the numbers in August and September, as this is when betting should pick back up.

Online Casinos Seeing Growth

Another reason that sportsbooks in New Jersey are starting to worry is that other forms of iGaming in the state have not seen a drop off. Online casino gaming has continued to perform better than it did 12 months ago, and July saw a solid jump in revenue from the July 2021 total.

Online gambling sites posted a total revenue of nearly $137 million in July, and that was up by close to $4 million from June. March 2022 posted a total iGaming revenue of over $140 million, and that industry has been trending in the wrong direction since.

New York is a state that doesn’t have any other online gambling options, and New Jersey is not competing for business. Several operators actually offer both sports betting and online casino gambling, and those sites have continued to bring in some revenue.

New Jersey was once a leader in both industries, but the next few months will likely determine the fate of this state.