More and more online sportsbook operators continue to enter the legal US betting market. However, there are some early signs of saturation in the more mature markets in the industry. Case in point is Resorts Casino Hotel in Atlantic City, New Jersey. As of Feb. 14, the casino’s online sportsbook ceased operations.
The ResortsCasino.com sports betting platform has been closed. However, Resorts will continue to offer iGaming through software supplied by NYX Gaming. This is a subsidiary of Scientific Gaming and it has been operational since 2017.Jump to
New Jersey’s Sports Betting Market
New Jersey actually led the fight against the federal government to give individual states the right to govern and regulate legal sports betting. A landmark decision by the US Supreme Court in May of 2018 ruled in the Garden State’s favor.
NJ quickly became one of the first states to offer legal sports betting through retail sportsbooks in Atlantic City casinos and in-state race tracks. Laws also paved the way for online betting through mobile sportsbook apps.
Flash forward to 2022 and New Jersey sportsbooks remains a major player in the legal US sports betting industry. However, Resorts’ decision to cease its online sportsbook operations is not all that big of a surprise.
Industry analysts are predicting further consolidation of resources as markets continue to mature. Competition from major commercial operators such as FanDuel and DraftKings are gaining market share at the expense of smaller competitors.
Resorts Atlantic City has been able to build a profitable business for its iGaming operations. However, that did not translate to a profitable run for online sports betting. The casino is generating more gross gaming revenue (GGR) online than its land-based gaming venue.
The online GGR topped $450 million in 2021. Resort’s land-based gaming operation took in $168.6 million according to New Jersey gaming records. The online business is the second most in the state behind MGM Resorts/Borgata.
Online sports betting will no longer be available through ResortsCasino.com. However, there are still operator agreements in place with DraftKings, FOX Bet and Barstool Sportsbook. Resorts will continue to offer retail sports betting through its on-site DraftKings sportsbook.
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Sports Betting Industry Consolidation
Currently, there are 30 states plus the District of Columbia offering legal sports betting in some form. The biggest markets in the US offer legal betting online. A few additional states such as Ohio are working through the regulatory process to go live.
FanDuel, DraftKings and BetMGM remain the three biggest sports betting operators in the country based on market share. Caesars Sportsbook, BetRivers, Barstool Sportsbook and PointsBet makeup most of the next tier of competitors.
It has already been rumored that Wynn Resorts has been shopping its WynnBET sportsbook operation at a heavily discounted price. The cost of doing business in a highly competitive environment has gotten a bit too high for the smaller players.
Everything still comes down to profitability, especially for publicly traded companies such as Resorts. Online sports betting volume is expanding at a rapid rate. However, only a handful of operators have the necessary economies of scale to effectively compete for that business.