Casinos and Sports Betting Profits Fall In New Jersey

Casinos and Sports Betting Profits Fall In New Jersey

New Jersey was the poster boy of nationwide sports betting legalization in the US. The state not only fought tooth and nail to get to create a sports betting market. The coronavirus outbreak has stopped the giant from making a good revenue this time.

New Jersey’s disappointing results

Over the past one and half years, the Garden State has earned a handsome revenue from its sports betting operators. On Wednesday, the New Jersey Division of Gaming Enforcement reported a fall in revenue. Last month, the sportsbook witnessed a betting handle of just under $182 million, marking a 63% decrease month on month. It is also down 51% from March 2019.

Casinos and Sports Betting Profits Fall In New Jersey

The state’s casinos are equally troubled because New Jersey is the second-worst infected state and the second-highest in death numbers from the coronavirus. Only its neighbor New York is higher in both parameters.

Casino Control Commission chairman James Plousis noted,

“As a surprise to no one during this crisis, the March revenue numbers show the dramatic impact of the closures. I know that, at this time, the paramount concern for all of the casino licensees in Atlantic City is the safety of their employees and customers. I share their concerns.”

Shutdowns have affected the industry

After the coronavirus pandemic reached the US, Governor Phil Murphy decided to order a shutdown in the state, which also shuttered casinos on March 16. PlayNJ.com’s lead analyst Dustin Gouker said that shutdowns have affected the gaming industry in the state in an unprecedented way. He added that online casinos in the state are a “boon” to the gaming industry. It not only brings valuable tax revenue to the state but also employs thousands of people. However, this figure has been unable to match the revenue lost from the land-based casinos and sportsbooks of Atlantic City.

The online gaming numbers remained strong during the month due to the casino shutdowns. This sub-sector brought in $64.8 million in revenue for the state in March 2020, marking a 65.6% increase from March 2019. The state’s total revenue for the month was $156.7 million. Gambling.com Group vice president Max Bichsel said that the state has gained momentum in the last two years because of which it could have easily gone past the $600 million marks in terms of sports betting handle. The state’s potential can be judged by the fact that it handled $182 million in bets even in the absence of major sporting events like March Madness.

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About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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