Sports Betting Drives Casino Revenue to Highest Total Ever
The figure is the highest ever recorded in the United States and signals a tide is turning in America’s insatiable appetite for gambling.
Next to Nevada, New Jersey has led the wave of the new kids recording over $3 billion in betting in their first year. This week, the state reported sportsbook registered over $315 million in bets.
DraftKings head of digital sportsbooks, Johnny Avello, has been floored by the revenue numbers coming from the Garden State.
“Overall the first year in New Jersey has been spectacular, but to be honest, I couldn’t give you enough positive adjectives to serve justice to the question,” said Avello.
“The future is mind-blowing, and with eight states active and an additional seven authorized to offer sports wagering in 2019, DraftKings is positioned to capitalize on these and subsequent markets.”
FanDuel, currently the king in New Jersey, is led by CEO Matt King. He shared the sentiments of Mr. Avello that the state has delivered far beyond expectations for his company.
“New Jersey has shown how sports betting can benefit the state by setting up a competitive marketplace with retail and online operators working to better serve their customers.”
“And other states should be taking their lead from New Jersey,” said CEO King.
“From a company standpoint, we went through a merger, opened a retail destination and started online all within months of PASPA’s repeal.”
Have High Revenues Led to Big Tax Windfalls for States?
Most states are finding that high revenue numbers aren’t necessarily equating to big tax revenue windfalls for legislators.
That said, leaders in most states are understanding that sports betting is still in its infancy, despite the large early numbers, and with growth comes higher taxes.
“It’s been a great first year, and I think the strong momentum is going to continue over the next 12 months,” added Joe Asher, CEO of William Hill US. “The business is still ramping up.”
Nevada is still the king of the castle when it comes to generating betting revenue. Since May of last year, the state has handled $5.2 billion in sports bets through April of 2019.
Despite worries that Nevada would suffer from the legalization of sports betting, Las Vegas and neighboring cities are posting their highest quarters on record.
Bettors are still using Las Vegas as a prime destination for events like the Super Bowl and March Madness.
“(Visitors still) absolutely want to come to Las Vegas to root their team on, whether it’s in a tournament or on TV or actually physically playing,” said MGM Resorts International CEO Jim Murren.
What Did Other States Bring In Over the Last Year?
After Nevada and New Jersey’s large figures, Mississippi was next, bringing in over $269 million in wagers.
Pennsylvania added $162 million to the total and that should surge over the next year as the state adds mobile gambling to the state’s sportsbooks.
With new states like Illinois and potentially New York joining the sports betting legalization craze, the total figure will be well into the double-digit billions next year.