Every state has watched their betting handle fall this summer, and that continues for New Jersey sportsbooks.
The New Jersey Division of Gaming Enforcement reported on Tuesday that legal bookmakers in the Garden State handled $531.9 million in bets during July, about 16% lower than June and 8% lower than a year earlier.
July’s drop was not totally surprising, since the state of New York also reported a decline in monthly handle for the month, with the Empire State's mobile wagering falling below $1 billion for the first time since online sports betting launched in January.
However, the handle for both retail and online sportsbooks in New Jersey in July was the lowest monthly amount for operators since July 2020, when wagering was $315.1 million.
Yet revenue for New Jersey sportsbooks rebounded in July. Sports-betting revenue in the state was $45 million for the month, a 17% jump from June. The hold for operators for June was about 8.4%, which was up from June’s 6.2% win rate.
Still, year-over-year revenue is down 18% in New Jersey. As of the end of July, revenue generated by the state's sportsbooks for the year amounted to $353.2 million, 16.6% lower than at the same point of 2021.
Parlays played out?
As more and more sportsbook operators focus on achieving profitability, one of the levers they have pulled is labeled "parlays," as players tend to lose those multi-bet wagers more often.
For example, in 2021, New Jersey sportsbooks reported almost $2.5 billion in parlay handle for completed events, or more than 20% of total wagering in the state for the year. What's more, the win rate for parlays was 17.5%, well above the 7.1% total hold for the year.
However, with no NFL regular football to be found, New Jersey bookmakers have been reporting a decline in the percentage of revenue that comes from parlays.
In April, parlays made up 65% of the sports-wagering win for completed events. After May, the number shrank to 64%. When June’s numbers were factored into the 2022 totals, the percentage dipped again to 62%.
As of the end of July, New Jersey sportsbooks reported more than $1.3 billion in parlay-related handle for completed events, or around 21% of total wagering. That said, parlay-related revenue was $214.7 million for the first seven months of the year, or 61% of the total, the lowest share yet for 2022.
Still, August should provide a boost for New Jersey bookmakers. The NFL preseason is underway and there are even some college football games that will kick off near the end of the month, which should grab the attention of bettors.