March 2024 marked a monumental month for sports betting in New Jersey, as the state’s handle soared to an impressive $1.33 billion. This figure represents a significant 29.6% increase from the previous year and a 22.9% rise from February. This surge in betting activity has set a new benchmark, with March being the seventh consecutive month where the handle exceeded $1 billion, establishing a robust trend in the state’s betting industry.
Revenue Insights and Operator Performance
Despite the soaring handle, the adjusted gross sports betting revenue for March was reported at $89.7 million, experiencing a slight dip of 3.6% compared to the same period last year. This decline in revenue percentage highlights the competitive nature of the market and the challenges operators face in maintaining profitability amidst growing handles. Notably, FanDuel led the charge among mobile operators, generating a remarkable $29.5 million in March alone, contributing significantly to its $136.9 million total in 2024 so far.
Quarterly Financial Achievements
The first quarter of 2024 has been exceptionally fruitful for New Jersey’s sports betting sector, with total revenue reaching $328 million, marking a 49.1% increase from the previous year. This boost was largely propelled by a record January, where operators hauled in $170.8 million. The state also benefited from increased tax revenues, collecting $11 million in March and totaling $42.3 million for the quarter, which is $13.9 million ahead of last year’s pace.
Impact of Parlay and Individual Sports Betting
Parlay wagering continued to be a lucrative avenue for operators, generating $55.8 million from a handle of $292.4 million in March. However, not all sports fared equally. Basketball betting, despite its high volume with a handle of $627.4 million, yielded minimal profits with only a 1.1% hold. Conversely, baseball betting proved costly for operators, marking their biggest monthly loss ever at nearly $5.9 million against an $87.7 million handle.
Looking Ahead: Trends and Predictions
The consistent growth in sports betting handle and the evolving landscape of operator revenues suggest a dynamic future for the betting industry in New Jersey. With mobile betting platforms like FanDuel and Fanatics — the latter securing $20.1 million in March and accounting for 36% of its first-quarter earnings — leading the market, the state is poised for further expansions and potentially more record-breaking months. As operators adjust strategies and the market matures, the coming months will likely see continued growth and possibly new challenges in profitability and market competition.
In conclusion, New Jersey continues to set the pace in the sports betting industry, with record-breaking handles and significant revenue contributions to the state’s economy. The trends observed in March 2024 indicate a robust market with potential for further growth, making it a key state to watch in the evolving U.S. sports betting landscape.
