In just a few years, New Jersey’s fledgling sports betting industry could overtake the well-established Nevada market, according to a new Eilers & Krejcik Gaming analysis.
A May U.S. Supreme Court ruling opened the door for sports betting in New Jersey, which leaders here hope will boost the casino and horse racing industries, as well as generate extra cash for state coffers.
Prior to that decision, only Nevada had full-scale legal sports betting. Delaware and New Jersey were first to launch after the court ruling.
In their September report, Eilers & Krejcik Gaming predicts New Jersey’s revenues from sports gambling will eclipse Nevada’s in 2021.
The consulting group estimates New Jersey will take in $442 million that year, and Nevada, $410 million.
The report’s authors predict eight online sports books will be operating in the state by next week and that number could reach 20 by year’s end.
“We believe a combination of factors could push the nascent New Jersey sports betting market past the more mature Nevada market by as soon as 2021,” the report said.
Sports books here took in $3.8 million in revenue in July, led by Ocean Resort, Meadowlands Racetrack and Monmouth Park racetrack, according to the New Jersey Division of Gaming Enforcement.
The opening weeks of legalized sports gaming in June the Garden State saw $3.5 million in revenue.
The report said New Jersey could be in the sports betting driver’s seat for several reasons:
* “A shift in major card-issuing bank attitudes toward processing sports betting transactions;
* A highly-competitive online sports betting … predominated by cutting-edge product and competitive pricing and promotions;
* Very high rates of black market recapture;
* Cross-selling … between online sports betting and online casino gaming;
* The construction of multiple destination sports books near in-state and out-of-state population centers.”