The regulated gambling market in New Jersey has reported a dramatic 15.8 percent year-on-year increase in revenue for the month of October, powered largely by sports betting.
Although sports betting is still the smallest sector of the state’s gambling industry, it has increased dramatically since the market was officially regulated in the middle of June. Sports betting revenue during October reached $11.7m, and the total of money wagered grew to $260.7m in what was only the fourth month of operation for the new market.
Online betting formed the bulk of the total, with generated revenue of $174.4 million, and the remaining $86.3 million came from land-based sportsbook betting.
Resorts Digital
Most of the sports betting revenue came from Resorts Digital, the new licensing partner for DraftKings, which produced $5.1m of the total. The closest competitor was the land-based casino Ocean Resort, which was opened to the public in June, and generated revenue of $824,193.
Resorts Digital also performed more strongly than both of New Jersey’s racetracks, Meadowlands and Monmouth Park. Meadowlands, which is in partnership with DraftKings’ rival FanDuel, produced revenue of $3.5m, and Monmouth Park took an additional $1.2m.
The total tax revenue paid on all gambling proceeds in October amounted to $19.8m, with $14.4m of that figure coming from the state’s gross revenue tax, and $4.0m through internet gaming, which is taxed at the rate of 15 percent. Sports betting brought in $233,397 in tax revenue through on-site bets, which are taxed at 8.5 percent, while online sports betting produced $1.1 million in tax revenue.
The figures show that sports betting, which became legal across the United States when the Supreme Court overturned the PASPA Act in May, is already becoming a significant force in the gambling industry and revenue is likely to increase further over the next few months.
