New Jersey sports betting went live on June 14 at Monmouth Park in Oceanport and at the MGM-owned Borgata Hotel Casino in Atlantic City, and the first month of operations has shown that the state’s costly fight for legal sports betting will be well worth with it.
The New Jersey Division of Gaming Enforcement (DGE) on Thursday released the first batch of sports betting revenue figures, which are based on a cash method of accounting, not on an accrual method as in Nevada, showing the three separate locations operating in June took in a collective $3,458,688 gross revenue, producing $293,863 in tax revenue for the state of New Jersey. That’s based on a total handle of $16.4 million across the same properties from June 14 through June 30.
The nearly $300,000 for New Jersey’s coffers is based on an 8.5 percent tax rate on operators’ sports wagering revenue. The mobile sports wagering tax rate is 13 percent, with mobile wagering likely to begin through a few properties via their apps/online platforms in the coming weeks. Anyone located in the state of New Jersey (21 or older) can sign up for an account remotely and deposit, without having to register in person at a licensee as in Nevada.
New Jersey Sports Betting Numbers and Handle From First Weeks of Live Operations Show Nice Win on $16.4 Million Handle.
Keep in mind that with the cash method of accounting, the $3.45M sportsbook win counts as revenue wagers on futures events such as on the World Cup and Super Bowl winners. Winning tickets will/would be deducted from revenues in the month in which they are redeemed.
“The initial sports wagering results illustrates the popularity among patrons and the potential of this new revenue stream for New Jersey operators,” said DGE Deputy Chief of financial investigations Christopher Glaum. “The Division anticipates continued revenue growth in future months as each of the state’s remaining 11 eligible sports wagering operators determines when and how they will seek to enter the marketplace.”
According to the DGE financial report, “$1.2 million in gross revenue was reported from completed events, which approximates accrual basis revenue that can be compared to the win reported of Nevada casinos.”
Here’s more of the breakdown for hold at each property and the handle collectively.
New Jersey sports wagering gross revenue from operations June 14 – June 30:
Borgata: $986,831
Will Hill (Monmouth): $ 2,279,166
Will Hill (Ocean Resort): $192,671Total: $3.458,688https://t.co/05pvpablCZ
— Sports Handle (@sports_handle) July 12, 2018
Also keep in mind that Ocean Resort, taking the location of the Revel, only opened on June 28, meaning it produced its handle and hold in three days.
People had a nice time betting on baseball! It represents $10.1 million of the $16.4 million in handle:
Finally for now, here are figures broken down by specific sports. pic.twitter.com/590EwrrqtH
— Sports Handle (@sports_handle) July 12, 2018
Further consider that mobile wagering has not yet begun, which will be coming soon through William Hill and the Borgata. Sources say that the MGM-owned Borgata’s mobile app will be introduced next week.
“While it’s still early, we’re obviously off to a great start,” said Joe Asher, CEO of William Hill US. “We always knew there was a big appetite for legal sports betting during the years of litigation, and now it is being proven. We are proud to be creating new jobs in New Jersey and bringing excitement to our customers. We can’t wait until football season.”
These numbers are pretty, pretty good, considering only baseball and soccer events (with some other events such as UFC 226) were occurring during this half-month stretch.
These three properties will soon have company.
This Saturday, the FanDuel Sportsbook at the Meadowlands Racetrack will open. Paddy Power Betfair’s (PPB) acquisition of FanDuel finalized this week and the new sportsbook and PPB aiding in operations and risk-management, but the book will be branded as FanDuel.
[Also See: What to Expect at the Meadowlands’ FanDuel Sportsbook Launch]
Other Atlantic City casinos aiming to begin operations before football season include the Hard Rock Atlantic City, which appears to have some relationship with the U.K.-based bet365 in the works. Also Caesar’s and Harrah’s and Golden Nugget, which is teaming up with Churchill Downs, will join the mix. Likewise Resorts Casino is getting there, which re-opened on June 28, same day as the Hard Rock. Resorts struck a partnership with DraftKings, which like PPB/FanDuel is seeking more brick-and-mortar partners or opportunities to obtain a license independently.
Welcome to the game, New Jersey, and Garden State sports bettors.
