The New Jersey Division of Gaming Enforcement on Friday reported the state saw slightly more than $1.1 billion in sports wagering handle in November, marking the sixth time that sportsbooks have reached that total in accepted bets.
The monthly figure was also good enough for 15th all-time among states in the post-PASPA era, giving New Jersey and New York 14 of the top 15 spots since state-by-state wagering became legal in May 2018. It was the eighth time New Jersey sportsbooks cleared $1 billion handle in the last 15 months.
November’s handle was an increase of 3.9% compared to October, but the drag on New Jersey’s numbers due to New York adding mobile wagering this year was again evident — New Jersey’s total was down 12.4% compared to November 2021. In the last three months combined, New Jersey’s handle of just over $3 billion is 15.2% lower compared to September-November 2021. The Garden State is less than $111 million shy of reaching $10 billion handle for the second straight year.
Operators claimed $80.4 million in adjusted revenue, good for sixth all-time in 54 months of wagering in the state. New Jersey has recorded six months with at least $80 million in AGR, but this time it was nearly 30% lower compared to November 2021, when the Garden State set a then-national record with close to $114.8 million.
State taxes came close to $10.5 million for November, though the $86.5 million for the first 11 months of the year is more than $8 million below the 2021 total for the comparable period. Year-to-date revenue is 10.8% lower compared to 2021 despite a 1.9% increase in handle, as the 6.8% hold is nearly one full percentage point lower than last year.
Parlays save the day for the books
November #SportsBetting numbers for #NewJersey via DGE, a 🧵. Han/Rev/WR by category (2/2)
🤷♂️ (other) $171.61M/$8.57M/4.99%
💸 (parlay) $250.07M/$51.58M/20.63%8/x #GamblingTwitter
— Chris Altruda (@AlTruda73) December 16, 2022
With their win rates on individual sports consistently below the 7% industry standard, New Jersey sportsbooks have come to rely more and more on parlay wagering as their primary source of revenue. November was no different, as the nearly $51.6 million in operator winnings from parlays represented close to two-thirds of their overall revenue.
The win rate on such bets surpassed 20% for the fourth consecutive month. Bettors placed more than $250 million worth of wagers on multi-leg options. Parlay revenue in New Jersey for 2022 climbed over $400 million, but the house will need a solid December to better last year’s record of $434.1 million.
Football revenue reached eight figures for the third month in a row, but the $11.6 million represented a second straight month-over-month drop and was 36% off the $18.1 million generated with the rash of NFL upsets in September. It has been a tough 2022 for the house when it comes to football — the $53.6 million in revenue is 19.1% lower compared to the same period in 2021 despite handle being less than 1% lower at nearly $1.6 billion.
Basketball revenue surged to nearly $7.4 million after operators reported a small six-figure loss for October. Though it was the fourth-highest monthly total of 2022, the hold was a paltry 2.4%.
The catch-all “other” category, which included World Cup play in November in addition to golf and hockey, generated nearly $8.6 million revenue from $171.6 million in wagers for a 5% hold. Month-over-month handle increased 14.5% but was also down 5.8% versus November 2021.
The New Meadowlands, tether to FanDuel, PointsBet, and Superbook, had a year-best $44.4 million in revenue as the books combined to top $40 million for the third consecutive month. Resorts Digital, whose top online skin is DraftKings, was a distant second at $16.6 million.
The Borgata remains a retail betting drain
Retail revenue barely cleared $3 million in November, with brick-and-mortar books in Atlantic City casinos and the New Meadowlands combining for a 4.4% hold on $69 million handle.
The Borgata in Atlantic City continues to be a huge loss leader on the retail side — bettors there came out more than $1 million ahead for the month. It makes it very unlikely it will break even for the year, as the book is now $3.7 million under for 2022. It is a staggering reversal of fortune, considering Borgata led all Atlantic City venues in 2021 with nearly $4.9 million in winnings.
Borgata’s sportsbook was not alone taking it on the chin in south Jersey. Caesars, Harrah’s, Resorts, and Tropicana all absorbed six-figure losses to the public, while Golden Nugget paid out nearly $34,000 more than bets accepted. New Meadowlands paced all retail venues with more than $4.3 million, its best month of 2022 while also sending its total for the year over $30 million. Bally’s was runner-up at nearly $451,000 to clear $2 million for the year.
Photo: Shutterstock
