NJ Sports Betting Licensees Report “Stunning” September Handle, Revenue

New Jersey

The New Jersey Division of Gaming Enforcement reported that the state’s 8 licensed sportsbooks took in a “stunning” (depending on who you ask) $183.9 million in bets during the month of September, nearly double (+92%) the amount wagered in August; the start of the NFL season ($90 million wagered on league games) and the launch of several new mobile sportsbooks (see: Caesers/Bally’s, Paddy Power/FanDuel, SugarHouse/Golden Nugget) are responsible for driving the growth. Online/mobile wagering has already surpassed the state’s retail business, as 56.5% ($104 million) of all sports bets placed were made through those channels. The $23.9 million (+166% MoM) held by the state’s bookmakers, after bets were paid out (except for futures), represented just shy of 8% of the total handle. The state was entitled to keep $2.6 million in tax revenue from sports betting operations.

Howie Long-Short: DraftKings and FanDuel sportsbooks are taking in 2/3 of all New Jersey sports betting revenue and nearly 90% of all the revenue generated from online/mobile applications. Resorts Digital (DraftKings’ license holder, privately held) reported 35% ($8.5 million) of the state’s Sept. revenue, while competitor Paddy Power (FanDuel’s license holder, PDYPY) posted 30% ($7.2 million); no other licensee did more than 10.5%. It’s worth noting that while most DraftKings revenue comes from its online/mobile applications, just 39% ($2.8 million) of FanDuel’s comes from those channels; the majority of their revenue ($4.4 million) comes from their Meadowlands retail location.

As for the state’s other retail locations, The Borgata (a MGM Resorts International property) reported the most sports betting revenue ($2.39 million) amongst all land based casinos; while the William Hill (WIMHY) sportsbook at Monmouth Park racetrack kept $2.2 million, up from $900K in August (+144%).

Fan Marino: Expect October’s handle to exceed September’s strong result. In addition to a full slate of NFL and CFB games (as we had in September), the MLB postseason began on October 1st, the NHL season started on October 3rd and the NBA season will get started this evening.

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Author: John Wall Street

At the intersection of sports & finance.

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