Another month, another record. November saw New Jersey take in more than $931 million from bettors. Can $1 billion be far off?
Based on Division of Gaming Enforcement numbers released December 14, the state topped its own national record for the fourth straight month. In October, state sportsbooks took in $803 million, according to the Associated Press.
“Even if New Jersey can’t quite reach $1 billion in a month before the end of the NFL season, the mere possibility so soon after the industry launched in 2018 would have been close to inconceivable until just a few months ago,” said Dustin Gouker, lead analyst for PlayNJ.com.
Sports betting and internet gaming from the nine Atlantic City casinos, along with sports wagers from three race tracks, produced almost $289 million in revenue. But revenue from slot machines and table games in brick-and-mortar casinos fell some 35 percent from 2019 figures to $146.5 million.
While overall gaming numbers dropped, those at Hard Rock Hotel & Casino Atlantic City rose more than 32 percent to $34.6 million. Ocean Casino Resort increased 5.2 percent to $23.7 million. The properties that saw a drop in November ranged from Golden Nugget, off by 3.2 percent, to Caesars, which tumbled almost 55 percent.
The record shattering November featured a lighter sports calendar, with the NBA and NHL not yet in action. The NFL outperformed all sports, guiding football to a record $433.3 million in handle, which was up from $278.9 million in October.
“When the traditional major betting sports went quiet, most of the major online sportsbooks were really good at engaging their customers with an array of offerings, from golf to table tennis,” said Eric Ramsey, analyst for PlayNJ.com. “What is surprising is that those efforts continue to pay dividends even as the major sports have returned.”
Sports betting produced little more than $50 million in revenue in November. Meadowlands Racetrack in East Rutherford generated $24.8 million for the month. Online betting accounted for 93.6 percent of the overall handle, or $872.1 million, up from 92.6 percent in October.
Even retail sportsbooks showed improvement, inching from $59.2 million to $59.5 million in handle, despite restrictions. Meadowlands/FanDuel led the way with $3.6 million in revenue in retail.
New Jersey’s online casinos and poker rooms fell short of its first $100 million revenue month with $91.8 million, short of the $93.5 million record in October. Still, the results grew 86.9 percent and generated $13.8 million in state taxes, proving that interest in gambling did not wane during the pandemic, but just found another outlet to exert itself.
“With Atlantic City casinos struggling to remain open during the pandemic, the tax revenue generated by online casino games in particular has never been more needed,” Ramsey said. “New Jersey’s online casinos are the envy of every state with legalized online gaming and a model for any state looking to pass legislation in the coming year.”
Once again, the Golden Nugget led all online casinos again with $26 million in November revenue, though a slight decrease from $28.6 million in October. Borgata placed second with $23.4 million, with Resorts Digital next at $20.9 million.
New Jersey was just one of several states that saw their sports betting handle rise dramatically last month.
MISSISSIPPI
Sports betting revenue in Mississippi reached $8.1 million, or 113.2 percent more than $3.8 million posted in November 2019, but 8 percent lower than October’s $8.8 million. Year-on-year, sports wagering fell 3 percent to $54.4 million, 11.1 percent down from $61.2 million in October. Sports betting revenue at the coastal casinos was $4.4 million, more than half the November total.
At Mississippi coast casinos in November, sports betting handle was $35.9 million, including $26.2 million wagered on football, $1.3 million on basketball and $23,047 on baseball. About $4.7 million was wagered on other sports and $3.6 million on parlay betting. Mobile sports betting is still not approved in the state.
IOWA
Iowa sports betting handle set a new monthly record in November as gamblers wagered nearly $87.2 million, according to Iowa Racing and Gaming Commission data. Of that amount, $62.4 million in wagers were placed via online apps. In the five months of the current fiscal year, sports bets made online or at state-licensed casinos surpassed $314.6 million, with $222 million wagered online.
November’s sports bets generated $8.1 million for the state, bringing total year-to-date sports betting tax collection to nearly $1.87 million.
Gambling.com Group Vice President of U.S. Business Max Bichsel said, “The Hawkeye State’s enthusiasm for sports betting hasn’t peaked as we saw another record month for sports betting in November. It was impressive to see steady growth given the decreased volume of sports this month.”
Observers expect sports betting numbers to set even more records next month when the on-site registration requirement ends. When sports betting was legalized in Iowa on Aug. 15, 2019, state legislators and Governor Kim Reynolds required bettors for the first 18 months to travel to a state-licensed casino to establish an account in person. Effective January 1, Iowans age 21 and older who prove residency can establish an account online.
Iowa’s 19 state-licensed casinos posted adjusted gross receipts of $104 million in November, down slightly from October. Attendance figures dropped to 1,157,533 as the Covid-19 continued to cause visits to decline.
For the year, the state’s casinos have posted $584.5 million in adjusted gross revenue, producing more than $111.9 million in tax revenue for the state.
INDIANA
Indiana set a new record for the state in November, taking in $251.4 million, breaking the previous high mark of $230.9 million recorded in October, says the Indiana Gaming Commission.
Figures also showed that slot handle and table games dropped in every casino in the state except Hammond Horseshoe, the result of the coronavirus pandemic.
Football made up almost half the handle in November, thanks to successful seasons by Indiana University, Notre Dame and the Indianapolis Colts.
“There really isn’t any substitute in sports betting for a local team doing well, and Indiana is enjoying three at once,” said Dustin Gouker, lead analyst for PlayIndiana.com. “With both college and NBA basketball returning, December really sets up to be another jump forward.”
More than 40 percent of the sports bets came through East Chicago’s Ameristar Casino, which partnered with DraftKings online sports book. Next in line, the Blue Chip Casino in Michigan City took in 26 percent of the market, in conjunction with FanDuel.
Online wagers made up 85 percent of the total bets, compared to 83 percent in October.
Indiana finished behind New Jersey, Nevada, Pennsylvania and Illinois.
“I think some of the worries that Indiana would slip as its neighbors legalized sports betting are calming,” said Jessica Welman, analyst for PlayIndiana.com.
Capacity limitations led to a decline in retail casino revenue to $148.2 million, off 11 percent from October. Year to date figures fell some 17 percent. Horseshoe Casino in Hammond saw an uptick of 17.5 percent in November compared to October.
Steven Cox, Horseshoe vice president of finance, attributed the increase in part to VIP play.
“Ever since this property became a Horseshoe we’ve been known for the biggest odds and the highest limits, and I will say we continue to take that big action here,” Cox said.
