NJ & PA Sports Gambling Results Confirm Power of Online Gambling
August 27, 2019
The July online gambling revenue figures are in New Jersey and Pennsylvania, and the results indicate there are some very clear lessons to be learned by states that are still contemplating the legalization of sports gambling and other forms online gambling. Not surprisingly, the legalization and implementation of sports gambling might well be the driving force behind what stands as historic results.
For the month ended July 2019, New Jersey recorded north of $250 million in sports betting handle. Not bad for a state that has been accepting sports wagers for just under a year. More amazingly, Pennsylvania recorded just south of $60 in sports betting handle in just the state's second month of accepting sports wager. Not lost on these excellent numbers is they were recorded with just MLB in season. Based on these numbers, expectations are going through the roof with the start of the NCAA football and NFL football season right around the corner.
With sports betting handle reaching record levels every month, it's noteworthy that online sports betting in both states is driving revenues up for all forms of online gambling. That makes a lot of sense when someone considers that interest in online sports betting is going to simultaneously increase interest in online poker and casino play.
In New Jersey, residents have had access to online casino gambling for well over a two years. That's not common knowledge throughout the states. Up until 18 months ago, the revenues from online casino gambling were stagnant, not exactly a ringing endorsement of said activities. The numbers are now rocking. For July, NJ reported 55.6 percent year on year growth with revenues moving up to $37.4 million.
According to one reporter, “NJ online gambling revenue had leveled off around the $20 million plateau 18 months ago, seemingly approaching its ceiling. The addition of legal sports betting in mid-2018, however, coincides with a remarkable surge.”
That's the only reasonable explanation.
The Lesson for New York
There are currently 15 states that have passed the required legislation to allow its residents to bet on sports. Of those states, about half of them have also legalized online gambling. One state that has taken a pass is New York.
While the New York legislature easily passed sports gambling legislation, online gambling legislation was left to die in committee prior to legislators recessing for the year. Based on the July results from neighboring NJ and PA, this might be something New York legislators will regret and need to fix next year.