New Jersey’s online sports betting market made a strong first impression in its first month of operation. The revenue for online gaming in August accounted for one-third of the overall sports betting total despite minimal availability from operators.
DraftKings launched its mobile product on Aug. 6 while playMGM and SugarHouse joined the fold late in the month. In all, the three platforms garnered $3.1 million in sports betting revenue. New Jersey’s total haul for sports betting in August was $9.2 million. DraftKings, which has partnered with Resorts Casino Hotel on its sportsbook, accrued 95 percent of the intake because of its extended availability and marketing blitz.
Research firm Eilers & Krejcik Gaming described DraftKings’ first month as “indisputably successful.” This was in spite of a shortened month, a rushed launch, and a lean sports slate.
“New Jersey will ultimately be home to 30 or more online sports betting brands. It’s highly unlikely that any single brand will dominate the market, although if the state’s online casino industry is any guide there will be clear winners and losers,” Eilers & Krejcik managing director Chris Grove wrote in an email.
“We think the online sports betting will eventually make up about 75 percent of the action and revenue in New Jersey. If you think of the New Jersey market as a $500 million opportunity, that means online is worth about $375 million. That’s enough for several operators to thrive, and several more to survive.”
The FanDuel Sportsbook at the Meadowlands Racetrack near MetLife Stadium led brick-and-mortar locations with $3.1 million in revenue.
SportTechie Takeaway
Four more online sportsbooks have joined the fray, as 888 Sportsbook, Caesars Sportsbook, FanDuel Sportsbook, and William Hill have all launched mobile products in New Jersey. That’s now seven operators in the Garden State, meaning the inventory has more than doubled in the first half of September. Those are some big players, with Legal Sports Report noting that major European companies bet365 and BetStars will be in the mix soon, too. September welcomed the college and NFL football seasons, so there should be a large pie for everyone to share.