Part 2: Peering into the future
Part 2: Peering into
the future
iGB’s principal data
partner H2 Gambling
Capital provides its
forecasts for sports
betting and online
gaming in New Jersey
Sports betting steams ahead
We can be certain that New Jersey
will regularly notch up record
revenues, if not every month then
certainly on enough occasions to
garner further positive headlines. The
ups and downs of receiving monthly
updates will no doubt be fascinating,
but it won’t obscure the generally
positive picture produced by the
cumulative revenue pie that develops.
H2 Gambling Capital is among the
consultants that have forecasted the
trajectory for sports betting in New
Jersey up to 2023 (Table 1).
In purely revenue terms, the
headline figures in New Jersey
show that it remains a relatively
small market. At around $275m at
maturity in 2023, it is fair to say
that it wouldn’t be garnering the
attention that it does if it wasn’t
the first and – to date – the most important market in the US to
launch since PASPA’s repeal.
Indeed, as important as regulated
sports betting is to the future of
US gaming, it is fair to surmise that
it is the forecasted progression of
online gaming revenues in the next
five years that it possibly more
interesting (see Table 2).
A figure of $345m rising to
$442m is substantial and if the
cross-sell trend evident in the past
six months continues to play out,
then it’s possible the rate of growth
might even exceed an already cross
sell-boosted 15% for this year.
But as Simon Holliday, founder at
H2 Gambling Capital, points out, the
good news with regard to a growing
online gaming market is overdue.
“Interestingly, ahead of the market
opening (in 2013) we had igaming
at circa $300m, growing to circa
Table 1: H2GC New Jersey sports
betting forecasts 2019-2023 Table 2: H2 New Jersey online
gaming forecasts 2019-2013
Year Sports betting
revenues ($m)
2019 171
2020 196
2021 Year Online gaming
revenues ($m) YoY rise
(%)
2019 345 15.4
14.6 2020 374 8.4
222 13.3 2021 400 7
2022 248 11.7 2022 422 5.5
2023 274 10.5 2023 442 4.7
Source: H2 Gambling Capital
YoY rise
(%)
Source: H2 Gambling Capital
New Jersey: data and lessons from the first five years of the US’ leading digital market
13