ATLANTIC CITY — New Jersey sportsbooks took an unusual financial hit in June, losing money despite a significant increase in betting activity, according to casino analyst Anthony Marino.
Speaking on The Don Williams Show on News Talk 1400 & 92.3 WOND, Marino said sportsbooks experienced an uncommon month in which betting volume climbed while operator profits fell sharply.
According to state gaming data, sports betting handle—the total amount wagered—increased 16% during June compared with the same month last year. But sportsbook revenue dropped 38% as bettors enjoyed an unusually successful month.
"It's not usual that sportsbooks lose money in a month, but it does happen," Marino said.
Marino attributed much of the downturn to local betting patterns, saying New Jersey bettors heavily backed the New York Knicks during their playoff run as underdogs.
"When a local team does particularly well, especially as an underdog, the sportsbook will probably lose money," he said.
He also noted that wagering on international soccer likely contributed to the results during the FIFA Club World Cup, although state regulators have not released sport-specific betting figures.
Marino said June's losses are unlikely to signal long-term trouble for sportsbooks.
He expects betting operators to recover during football season, traditionally the industry's busiest and most profitable period.
"The real money comes in football season," Marino said. "By the end of the year, I would expect sportsbooks to have positive numbers."
Marino also noted that sportsbooks generally earn their highest margins from parlay wagers, where bettors must correctly predict multiple outcomes to win.
"The sportsbooks love parlay bets," he said. "That's where they earn significantly higher win percentages."
Marino made the remarks during an interview with Don Williams on The Don Williams Show, which airs live and local weekdays from 6 to 10 a.m. on News Talk 1400 & 92.3 WOND.
