New Jersey to surpass Nevada by 2021
New Jersey could have as many as 20 online operators by the end of the NFL American football season and have a bigger sports betting market than Nevada by 2021.
Research company Eilers & Krejcik Gaming has tipped the fledgling market to increase from a current yield of just $35m this year to $442m (£340m/€380m) by the end of 2021. Over the same period, Nevada, the US’s gambling capital for decades, is expected to rise from a current $279m to $410m.
In its US Sports Betting Monitor report – available here - Eilers & Krejcik said factors such as a shift in major card-issuing bank attitudes toward processing sports betting transactions, “very high” rates of black market recapture and cross-selling synergies between online sports betting and online casino gaming will be significant factors in New Jersey’s ascendancy.
Eilers & Krejcik’s report comes at the start of the NFL season, which has been considered a key moment for in New Jersey betting operators. Last night’s game between the Philadelphia Eagles and Atlanta Falcons (pictured) was the first game on which American punters could legally place bets outside Nevada, with DraftKings FanDuel, William Hill, MGM Resorts and Rush Street/SugarHouse all offering mobile sportsbooks.
With other operators set to enter an increasingly crowded marketplace soon, Chris Grove, head of sports and emerging verticals at Eilers & Krejcik, told iGamingBusiness.com that New Jersey’s betting market will be almost unrecognisable by the time Super Bowl LIII takes place in Atlanta in February.
“The market by the end of the NFL season will dwarf the market as it stands today,” Grove said. “You'll have at least double the amount of online operators, near-permanent retail sportsbooks at most properties, and an industry-wide marketing machine fully engaged.”
Groves added that the key developments in the coming months in US betting will be further consolidation between land-based and online operators, as well as legislative changes.
He added: “The two things we're watching for: First, who snaps up partnerships with the remaining regional casino powers. Those deals will go a long way to determining the eventual shape of the market.
“Second, what states move forward with bills and what kinds of decisions do they make on issues like tax rate and ceding control or revenue to the leagues.”
New Jersey legalised sports betting after PASPA was repealed in May, with the first wagers being accepted in June. DraftKings became the first company to launch digital betting in early August.