Nj Sports Gambling Tax Revenue
New Jersey Adds Additional 1.25% Tax on Sports Betting Revenue Less than five months after New Jersey won the Supreme Court battle that allowed its casinos to offer sports betting, taxes are going up. New Jersey has an 8.5% tax for sports bets made in person and a 13% tax for online and mobile sports bets. Nevada has a much lower tax rate of 6.75% for all types of sports bets. Sports betting winnings are subject to the same 24% federal tax rate as other gambling winnings. The winners are also responsible for paying the applicable local taxes. The current NJ tax rate is 8.5% for retail sportsbook wins and 13% for wins at online sportsbooks or on mobile apps. New Jersey online gambling revenue hits a new record of $49.3m in December, bringing 2019's annual haul to $482.7m, up 61.6% from 2018.
New Jersey sports betting operators posted impressive revenue numbers in November.
Operators generated $21.2 million in revenue with a massive $330 million in overall handle. There were also some interesting findings regarding mobile and online betting, but we’ll get to that in a little bit.
Revenue figures are drastically up from October, which saw NJ sportsbook take in just $11.7 millionin revenue while increasing to $260 million in total wagers.
Sports betting is taxed at 8.5 percent which resulted in $2.45 million in tax revenue for the Garden State in November.
Breaking down the numbers
DraftKings Sportsbook and FanDuel Sportsbook continue their dominance in the newly formed NJ sports betting market. The pair combined yet again for roughly two-thirds of overall revenue generated.
Here is a November breakdown of total sports betting revenue in New Jersey.
- Bally’s Wild Wild West (Caesars, 888) – $178,489
- Borgata (playMGM) – $1,072,047
- Golden Nugget – $130,874
- Harrah’s – ($124,260)
- Meadowlands (FanDuel) – $7,043,394
- Monmouth Park (William Hill, SugarHouse) – $2,679,395
- Ocean Resort (William Hill) – $2,824,762
- Resorts (DraftKings, BetStars) – $7,330,503
- Tropicana – $108,751
- Total – $21,243,865
For the year-t0-date, the industry’s total gaming revenue was $2.645 billion for 2018 compared to $2.452 billion in 2017, according to the NJ Division of Gaming Enforcement.
Move over retail, online is king
According to numbers posted by the Division of Gaming Enforcement, more than 72 percent of money wagered on sports in New Jersey in November came via mobile and online platforms.
Looking at the $330 million in overall handle collected, more than $238 million can through a digital channel.
- Total Online – $14,446,570
- Total Retail – $6,797,295
It must be noted that sports betting on the East Coast is still in its infancy. But it’s clear that when it comes to placing wagers, customers prefer the ability to place a bet via mobile devices rather than taking the trip down to a casino.
Since its inception in June, sports wagering total gross revenue was $73.2 million.
Nj Sports Gambling Tax Revenues
The numbers are no surprise
Jeff Gural, who runs the Meadowlands Racetrack told the Hartford Courant, he wasn’t surprised at how fast the sports betting market is growing.
“I was there Sunday, and the place was packed. So many of those games went right down to the last minute. It was really exciting,” he said.
A major contributor to the growing NJ market has been football, which represents the largest share of the action since sports betting emerged on June 14.
So far, $328 million has been wagered on the collegiate and professional football. New Jersey appears to be holding its own, especially when compared to the birthplace of sports betting, Nevada.
Nevada took in $1.8 billion worth of sports bets from mid-June through the end of October. Bettors in New Jersey have placed roughly $928 million on sporting events in the state.
Any sliver of doubt about whether mobile New Jersey sports betting is the future faded emphatically in December 2019.
The Garden Statereported its sports betting revenue numbers for the month Tuesday and wagering via NJ sports betting apps reached a new apex: nearly nine out of every 10 bets. The hard total of roughly 88% exceeds even the lofty 85% watermark set for most of 2019 in NJ.
The report shows handle of more than $557 million and revenue of $29.4 million for December. That’s a hold of about 5.3%, right on Nevada’s historical average.
NJ sports betting generated more than $4.58 billion in handle in 2019. Revenue of nearly $300 million equated to better than $36 million going into New Jersey state tax coffers. Combined with local assessments dedicated to Atlantic City, that figure rises to more than $40 million.
FanDuel cements 2019 NJ sports betting surge
Six months of trailing its primary rival faded into the swamps last year as FanDuel Sportsbook overtook DraftKings Sportsbook.
FanDuel finished the year as the early market leader in New Jersey, posting more than $14 million in December revenue. DraftKings took the silver with more than $9 million in hold for the final month of the year.
For 2019, FanDuel accounted for nearly half of NJ sports betting revenue with better than $149 million through its Meadowlands Racetrack license. DraftKings posted more than $79 million via its Resorts Digital license. (Both licenses include other operators as well.)
DraftKings ascended in 2018 in part because of its first-mover advantage in mobile, launching weeks ahead of competitors. FanDuel steadily eroded that edge heading into 2019, using its retail presence at Meadowlands Racetrack to help build its mobile business.
| Property (Online) | Retail | Digital | December total | November total |
|---|---|---|---|---|
| Total | $3,888,867 | $25,524,963 | $29,521,476 | $32,911,721 |
| Bally's Wild Wild West (Caesars, 888) | $64,759 | $108,437 | $173,196 | $708,331 |
| Borgata (betMGM) | $1,277,103 | $995,096 | $2,272,199 | $2,077,425 |
| Golden Nugget (Golden Nugget, BetAmerica) | $66,306 | $102,524 | $168,830 | $255,555 |
| Hard Rock (Unibet, bet365) | ($51,182) | ($294,442) | ($345,624) | $537,089 |
| Harrah's | ($107,646) | - | ($107,646) | $22,565 |
| Meadowlands (FanDuel, PointsBet) | $2,426,360 | $12,089,277 | $14,515,637 | $14,880,433 |
| Monmouth Park (William Hill, SugarHouse, theScore) | $615,205 | $1,929,969 | $2,545,174 | $2,521,765 |
| Ocean Resort (William Hill) | ($67,260) | $1,230,059 | $1,162,799 | $2,547,648 |
| Resorts (DraftKings, Fox Bet) | ($406,493) | $9,331,085 | $8,924,592 | $9,181,132 |
| Tropicana (William Hill) | $71,715 | $32,958 | $104,673 | $179,778 |
Can’t we all just get along?
Nj Sports Betting Tax Revenue
Returns from the first full year of legal US sports betting indicate pent-up demand throughout the country. A robust year for NJ sports betting did little to damage the Nevada market, at least in the short term.
While sports betting in New Jersey generated $4.58 billion in handle, Nevada enjoyed its strongest month on record in November 2019. Bettors in the Silver Stateput up $614 million in a month without any major events in Las Vegas.
Sports betting revenue in the US, therefore, does not appear to be a zero-sum game. The wave of demand cannot rise infinitely; however, less than two years in, and it has not yet crested.
New Jersey already showed it could weather one storm when PA sports betting launched mobile last year. As long as New York sputters on mobile wagering, New Jersey sports betting will reap the benefits of its neighbor’s inertia.