The New Jersey Division of Gaming Enforcement announced the January 2022 total gaming revenue results Wednesday, showing New Jersey’s sportsbooks set a new state record for sports betting with more than $1.3 billion in January. That figure surpassed expectations after New York launched mobile sports betting early in the month. Meanwhile, the Garden State online casinos set yet another monthly record in January, showing New Jersey’s gaming industry is capable of navigating a new competitive landscape, according to PlayNJ, which tracks gaming developments in the state.
“Sportsbooks have dealt with neighbors legalizing mobile sports betting before and continued to thrive, and it will take a few months before we know for certain the true impact of New York,” said David Danzis, an analyst for PlayNJ.com. “But January’s results are certainly encouraging, showing that New Jersey’s gaming industry can weather New York’s expansion.”
“Despite the launch of New York sportsbooks last month, activity at New Jersey sportsbooks did not appear to decline in January 2021. Handle for the month, $1.35 billion, exceeded handle from December 2021 and each of the past three Januarys,” Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, Stockton University School of Business, said.
“Being more populated (20.2 million) than New Jersey (9.3 million) and benefiting from the lessons learned by New Jersey operators, it is not surprising that New York is already a major player in the online sports wagering market so soon after launch. It may be many months yet before a clear picture of how the New York and New Jersey mobile sports betting markets will coexist, especially in the context of markets in other neighboring states,” she continued.
New Jersey’s online and retail sportsbooks handled nearly $1.35 billion in wagers in January, up 10% from $1.2 billion in December, according to official reporting released Wednesday.
Betting volume was up 40.7% year-over-year, from the $958.7 million generated in January 2021. More surprising, it topped the previous state record of $1.3 billion in betting reached in October — which was a U.S. high until New York debuted.
Sportsbooks won $60.2 million in gross revenue. That was down 27% from $82.4 million in January 2021, though up 2% from $59 million in December. In the end, sports betting taxes injected $9.3 million into state and local coffers.
With five weekends on the calendar, January’s handle was bolstered by an extra week of regular season NFL games, expanded playoffs and college football’s national championship game. That led to $340.3 million in football betting, but that was down from $398.8 million in December. Basketball, though, generated a whopping $553.7 million in wagers.
“With the expanded NFL schedule and a favorable calendar, most states will set a sports betting record in January. But only New Jersey saw their most important feeder market turn into competition,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which includes PlayNJ.com. “Ultimately, having such a busy sports calendar in January did seem to help soften the impact of New York’s launch.”
Online sportsbooks accounted for $1.2 billion in wagering, or 89.7% of the state’s handle in January. FanDuel/PointsBet/SuperBook topped the online market, with $35.5 million in gross revenue, up from $27.6 million in December. That topped DraftKings/Fox Bet/Resorts, which was second, with $10.2 million in revenue.