New Jersey Rebounds in March Thanks to the March Madness Tournament, Which Allowed the State to Post Its Third-Highest Month in Regards to Gross Revenue
February was an underwhelming month for the sports betting industry, but at the same time, it was fully anticipated. However, the Garden State average betting volume bounced back in a big way in March, thanks to March Madness circled on the calendar.
New Jersey Regains Its Billion Dollar Status
In the previous month, the sports betting handle in the Garden State declined to $847.4 million, ending a streak of four consecutive months over a billion dollars. Bettors located in the Garden State are prohibited from placing wagers on in-state programs such as FDU, but the monthly handle still reached $1.03 billion.
March 2023 was a great month for the sportsbook operators because the revenue numbers skyrocketed. According to the New Jersey Division of Gaming Enforcement, the bookmakers registered $93 million in revenue with an impressive 9.1 percent hold rate. The totals that were slightly higher were recorded in November 2021 ($114 million) and September 2022 ($97.9 million).
Compared to its year-over-year total, the Garden State’s handle rose 40.1 percent during the month. Based on the results, it’s the third-highest total in the jurisdiction’s history, and mobile sports betting accounted for 95 percent of the market’s taxes.
From the adjusted tax results, the state collected $11.9 million in tax receipts for the month. This was $4.7 million more than in February and $3.7 million more than the previous year.
The Industry Leading Platforms Take Majority Market Share Once Again
Meadowlands Racetrack is composed of FanDuel, PointsBet, and SuperBook were responsible for $36.3 million of the total revenue, which translates to nearly 40 percent. The Garden State is one of the few jurisdictions that doesn’t break down the revenue of each platform.
The revenue generated by Resorts Digital Gaming, which includes DraftKings and FoxBet, was $30.7 million. The five bookmakers listed above registered 72 percent of the total because the Resorts group brought in $29.8 million. In addition, the Borgata Hotel & Casino, powered by BetMGM, claimed $7.3 million in online revenue and $838,000 in retail revenue.
Unlike New York, New Jersey is one of the states with a low barrier to entry for many sportsbook operators. Another bookmaker is looking to join the market in May.
Unibet Will Become the Newest Sportsbook in Town
A new sports betting platform will be launched by Unibet’s parent company Kindred in mid-may in New Jersey. Currently using Kambi for its platform, Unibet launched in New Jersey in September 2019.
The platform will also be available in Pennsylvania by the end of June. Unibet is another company that is based outside of the United States, but is available in six markets in North America, which include Arizona, Indiana, New Jersey, Ontario, Pennsylvania, and Virginia.
On a side note, basketball dominated the state’s monthly handle with a total handle of $534 million. Parlays came in second with $235.9 million bets, followed by the other category with $212.3 million. A total of $19.7 million was handled by baseball during spring training, and spring football added $2 million.