Why New Jersey Sportsbooks Had a Terrible June Despite World Cup Betting Boom

If June was the month when Americans allegedly fell in love with World Cup soccer betting, why were New Jersey’s sportsbook revenues down by almost 38% for the period?

The likely answer is the books were pummeled by regional bias. Call it a mix of the Knicks Effect and World Cup patriotic betting.

Sportsbook revenue is not the same as betting handle. Operators make money on the difference between the amount wagered and the amount paid out to winning bettors. That means a month with heavy betting activity can still produce disappointing revenues if customers keep winning.

What the Figures Say

New Jersey sportsbooks generated $53.3 million in gross revenue from more than $917 million wagered on sporting events during June, down 37.9% from $85.8 million a year earlier, according to the New Jersey Division of Gaming Enforcement (DGE).

Brick-and-mortar sportsbooks at Atlantic City casinos and the Meadowlands and Monmouth Park racetracks actually posted a combined loss of more than $672,000 on sports betting during the month, although online remained profitable.

Bettors staked nearly $35 million on basketball during the month, yet sportsbooks collectively lost about $4.6 million on basketball wagering.

The DGE does not break down betting by team, but New Jersey’s proximity to New York means many customers were likely backing the underdog Knicks as they beat the San Antonio Spurs to win their first NBA championship in 53 years.

The Knicks entered the NBA Finals at around +160 to +170 underdogs, making them an attractive proposition for local bettors who believed the long title drought was about to end.

New Jersey’s market is mature, but it remains heavily influenced by New York sports fans. Nevada sportsbooks, by contrast, take action from tourists and professional bettors from across the country, giving them a more diversified customer base and reducing their exposure to the fortunes of any one regional team.

World Cup Fever

Meanwhile, for a state about to host the World Cup final in just two days’ time, New Jersey reveals surprisingly little about soccer betting. The DGE still does not publish a separate figure for wagers on the sport.

However, operators across the country reported that the USMNT represented their biggest World Cup liability, accounting for around 80% of handle on the team’s matches. As the Americans progressed through the tournament, sportsbooks repeatedly paid out before the run finally ended with a 4-1 defeat to Belgium in the Round of 16 on July 6.

BetMGM later described Belgium’s victory as “one of the biggest wins” it had ever recorded on a soccer match, suggesting sportsbooks may have recovered some of June’s losses when the July figures are released.