New Jersey Sportsbooks Bleed $38M in June Despite World Cup Hype: The Knicks Effect Explained

June should have been a golden month for New Jersey sportsbooks, with the FIFA World Cup captivating bettors and the state hosting the tournament’s final. Yet, sportsbook revenues plunged 37.9% to just $53.3 million, despite a massive $917 million handle. The culprit? A perfect storm of regional bias and patriotic wagering that left operators bleeding cash.

The issue stems from two major factors: the Knicks Effect and the USMNT’s early World Cup exit. New Jersey’s proximity to New York means local bettors overwhelmingly backed the underdog New York Knicks as they won their first NBA championship in 53 years. The team entered the Finals at +160 to +170, making them an irresistible bet for home-state fans. Nearly $35 million was wagered on basketball alone, yet sportsbooks collectively lost about $4.6 million on the sport.

While the New Jersey Division of Gaming Enforcement (DGE) doesn’t break down betting by team, the Knicks Effect is undeniable. Unlike Nevada sportsbooks, which attract a diverse national audience, New Jersey’s market is heavily influenced by regional loyalties. When local teams dominate headlines—and win—operators face concentrated risk.

Meanwhile, the World Cup brought its own challenges. Though the DGE doesn’t publish separate soccer betting figures, operators nationwide reported that the US Men’s National Team (USMNT) accounted for around 80% of handle on their matches. As the Americans progressed through the tournament, sportsbooks paid out heavily—only for the run to end abruptly with a 4-1 defeat to Belgium in the Round of 16. BetMGM later called Belgium’s victory “one of the biggest wins” it had ever recorded on a soccer match, hinting that July’s figures might show some recovery.

Brick-and-mortar sportsbooks at Atlantic City casinos, 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 highlights how regional bias can distort revenue even during high-profile events.

With the World Cup final just days away at New York/New Jersey Stadium, the question remains: Can operators recoup June’s losses, or will regional loyalties continue to skew the books?