World Cup Boom Fails to Save NJ Sportsbooks

NJ sportsbooks suffered a 37.9% revenue drop in June, generating just $53.3 million from a $917 million handle, despite the hype surrounding the FIFA World Cup. The decline can be attributed to two key factors: the Knicks Effect and the early exit of the US Men’s National Team (USMNT) from the tournament.

New Jersey’s sportsbooks were heavily impacted by local bettors backing the New York Knicks as they won the NBA championship. The team entered the Finals as underdogs at +160 to +170, drawing nearly $35 million in wagers. However, sportsbooks collectively lost about $4.6 million on basketball betting, illustrating how regional bias can lead to significant losses for operators.

The New Jersey Division of Gaming Enforcement (DGE) does not break down betting by team, but the influence of New York sports fans is undeniable. Unlike Nevada, where sportsbooks attract a more diverse national audience, New Jersey’s market is heavily skewed by local loyalties. When regional teams dominate—and win—operators face concentrated risk.

While the World Cup should have boosted revenues, the USMNT’s early exit after a 4-1 loss to Belgium in the Round of 16 left operators with substantial payouts. Operators across the country reported that the USMNT accounted for around 80% of handle on their matches. BetMGM later described Belgium’s victory as one of the biggest wins it had ever recorded on a soccer match, suggesting that July’s figures might show some recovery.

Brick-and-mortar sportsbooks in Atlantic City, the Meadowlands, and Monmouth Park even posted a combined loss of over $672,000 on sports betting in June, though online operations remained profitable. The disparity underscores how regional bias can distort revenue, even during major sporting events.

With the World Cup final taking place at New York/New Jersey Stadium in just days, the focus now shifts to whether operators can recoup June’s losses or if regional loyalties will continue to impact the books.