The March 16 shutdown of New Jersey casinos and racetracks took their toll in the March sports betting revenue results. The combined retail and online sportsbooks took in a third of the expected handle. At the same time, online casinos and poker rooms blossomed.
Sportsbooks lost out on nearly $370 million in wagers, according to PlayNJ.com estimates, while online casino and poker revenue set a new record with $64.8 million in revenue.
“Shutdowns from the coronavirus pandemic are affecting New Jersey’s gaming industry in ways that are unprecedented, and that will continue until the country begins to return to some semblance of normalcy,” said Dustin Gouker, lead analyst for PlayNJ.com.
New Jersey’s online and retail sportsbooks collected just $181.9 million in bets, according to official reporting released April 15. In an industry that has seen consistent year-over-year growth of 50 percent or more, March’s handle fell 51 percent from the $372.5 million posted in March 2019 and down 63 percent from $494.8 million in February 2020. March’s handle, which pushed New Jersey sportsbooks past $7 billion in lifetime wagers, was the smallest since August 2018.
New Jersey sportsbooks produced $13.2 million in gross revenue, yielding $1.7 million in tax revenue for the state. But revenue was down 58 percent from $31.7 million in March 2019.
Most of the betting happened made before March 11, when the NBA suspended its season and triggered a spate of cancelations through the sports world. When the smoke cleared, bettors had a handful of international events and futures betting available. The most significant loss for bettors was the NCAA basketball tournament which would have generated more than $150 million in New Jersey alone, based on PlayNJ.com estimates.
“The loss of March revenue will not be something that New Jersey sportsbooks can make up,” said Eric Ramsey, an analyst for PlayNJ.com. “Until sports are able to get going again, New Jersey’s online and retail sportsbooks will continue to be uncomfortably quiet.”
Online betting generated 89.9 percent, or $163.4 million, of the state’s handle in March. FanDuel Sportsbook/PointsBet led online sportsbooks with $5.7 million in gross revenue, down from $9.6 million in February.
“Professional leagues are trying to figure out a way to get back out on the field, which is the good news,” Gouker said. “The bad news is there is no way to know when that will be, and it doesn’t appear that it will be particularly soon.”
