N.J.'s sports betting generates $294K in taxes

New Jersey’s three sports-betting venues captured nearly $3.5 million in gross revenue in June, the first month of legal sports wagering, and returned $294,000 in taxes to the state, the New Jersey Division of Gaming Enforcement reported Thursday.

The report provides a glimpse of potential wagering activity, since it covers only a partial month after gambling began June 14 at Monmouth Park Racetrack in Oceanport and at the Borgata in Atlantic City, and on June 29 at Ocean Resort Casino in Atlantic City.

Monmouth Park reported $2.3 million in gross revenue, the Borgata reported $1 million, and Ocean Resort reported $193,000. Gross revenue is roughly the difference between the total amount bet minus the cash returned to winning bettors; it is the total upon which the state assesses its 8.5 percent sports-wagering tax. But the regulators warned that sports-wagering gross revenue figures may be volatile on a monthly basis since payouts for future events, such as the Super Bowl, could occur months after the original wager was made. And unredeemed winning wagers are counted as revenue, but may be deducted in future months.

Of the total revenue, $1.2 million was reported from completed events based upon a total of $15.4 million bet. That means the three operators captured a win percentage of 7.8 percent of the total bet on completed bets.

Of the completed events, $10.1 million was bet on baseball and $2.2 million on soccer.

About $1 million was bet on future events, mostly on soccer, football, and baseball.

Though sports betting was launched with great hoopla, it only generated about 1.5 percent of the state’s total gaming revenue in June of $233.6 million, most of which was derived from casino slot machines and table games. The June revenue reflected a 7.6 increase over the same month last year.

New Jersey rolled out sports betting only a month after the U.S. Supreme Court ended the state’s seven-year battle to legalize sports wagering, ruling that the Professional and Amateur Sports Protection Act of 1992 was unconstitutional. The federal law banned sports gambling in most of the country.