New Jersey and Tennessee Show Mixed Results in Summer

Sportsbook

Figures released last week by the New Jersey Division of Gaming Enforcement show Garden State sportsbooks handled $633.2 million in bets during June, around 17% lower than May and approximately 17% lighter than a year earlier. All told, the summer doldrums have now come for sports betting in New Jersey.

 

The June handle for retail and online sportsbooks in New Jersey was the lowest monthly amount of action for the state's bookmakers since last July, when wagering added up to $578 million. 

 

While the sports schedule has slowed down since the days of college basketball tournaments and playoff football, New Jersey operators may also be feeling a bit more of a pinch due to New York’s launch of online sports betting in January.

 

Although Garden State sportsbooks have weathered the new competition, opening such a huge market next door could finally be taking a toll on New Jersey’s handle. 

 

Revenue for New Jersey sportsbooks is slipping as well. Sports wagering revenue in the state was $39.2 million in June, down nearly 45% year-over-year and 36% lower than May’s haul. And as of the end of June, sports-wagering revenue in New Jersey amounted to $308.7 million, 16.2% lower than a year earlier.

 

The hold for operators for June was about 6.2%, which was a drop from May’s 8% win rate. 

 

As usual, Meadowlands Racing and Entertainment was the top sports-betting licensee in New Jersey in revenue last month. The racetrack and its online sportsbook partners — FanDuel, PointsBet, and SuperBook Sports — generated $21.4 million in revenue for the month.

 

It’s not unusual to see business slowing at sportsbooks during the summer months, as the busy season is just the National Football League’s regular season and playoffs. 

 

But the slowdown in sports betting in New Jersey came even as overall gaming revenue ticked up year-over-year in June by about 2% to $401.5 million. That included $229.1 million won by brick-and-mortar casinos and $133.1 in revenue from online gaming, the latter of which was up 24.4% from a year earlier.

 

The year-to-date handle for New Jersey sportsbooks still sits at around $5.8 billion as of the end of June. Going by completed events, the most-bet sport in the state has been basketball, with $2.3 billion in wagering thus far this year.

 

The sports betting handle in Tennessee, which only offers mobile betting, dropped by 17.6% from May to June — and the hold percentage again fell well below the required 10%. The summer slowdown continued for sports betting in Tennessee, as state sportsbooks announced their lowest handle of 2022 in June — and another month with a sub-10% adjusted hold rate.

 

The Tennessee Sports Wagering Advisory Council recently released June numbers, showing the state's handle for last month was approximately $215.78million — down 17.6% from May’s results, although up 19.2% year-over-year.

 

Tennessee sportsbooks, which only offer online sports betting, paid out $199.9 million to bettors this past month, leaving $15.8 million in gross gaming revenue for operators, which was a significant drop from the $27.3 million brought in the previous month.