In May last year, the state of New Jersey challenged the Professional and Amateurs Sports Protection Act of 1992 (PASPA) at the US Supreme Court and won. The majority of the justices declared the federal ban on sports wagering unconstitutional. The ruling cleared a way for all 50 states in the US to offer legal sports betting.
The Birth of the Billion-Dollar Business
The ruling by the Supreme Court actually removed the final barrier to New Jersey thus allowing sports betting. This produced a gambling gold rush in the state and one year later, the results are very significant.
The state’s sports betting market blew past the half a billion dollar mark less than 5 months after the ruling. The first summer of sports betting passed by with increases in the handles on a monthly basis.
Sports’ betting in the Garden State has continued to grow and by March this year, the New Jersey sports betting handle had passed the $2 billion mark by $32 million. Wagering in the state has proven to be especially profitable for racetracks, casinos as well as the state government.
Mobile Sports Betting
When sports betting in the state kicked off in June last year, there were only two retail sports books in the entire state.
In August 2018, mobile sports gambling in the state escalated when its first available online sportsbook (Draftkings) was launched. Other sportsbooks such as the FanDuel and SugarHouse closely followed. In that month alone, the sudden availability of online sports gambling saw over $95 million bets placed.
Currently, there are 14 sportsbooks apps in the market, and 10 retail books at North Jersey racinos as well as the casinos in Atlantic City.
Possible Reasons behind Sports Betting Booms in New Jersey
Every sportsbook in New Jersey offers different sports, odds, and promotions, but the DGE (Division of Gaming Enforcement) monitors all these activities. This gives the New Jerseyites the sense that the platforms are legal, safe, and secure.
The DGE also ensures that the market is fully regulated and if the companies’ violate the set policies, they face the possibility of fines. Some of the violations include letting underage gamblers use their platforms and taking action on the states’s colleges and universities. The 2018 college football season saw two companies are fined for that reason.
Additionally, the mobile sports betting platforms offer the gamblers the luxury and convenience of betting without the hassle of leaving the house. The platforms are available for download on any Android and iOS devices, which means that anyone with a Smartphone can easily access them provided they are older than 21 years. Most of these online platforms have a browser version too.
However, it all always comes down to the numbers. It is clear that gamblers love the legal New Jersey sports betting.
Sports Betting Beneficial for the New Jersey Economy
Increased wagering has its significant benefits to an economy. The millions New Jersey is generating through taxing in state sports bets is typical and it is representing an opportunity for other states to consider legalizing sports gambling.
Previously, Americans were taking their gambling interests overseas. However, legalizing sports betting is one of the convenient ways of keeping the money onshore as well as generating tax revenue that would otherwise have been nonexistent.
In fact, an Oxford University report published in 2017 found that if the US regulates sports gambling, it will contribute about $14 billion in the annual GDP. This will also depend on the states that will choose to legalize and their respective tax rates.
In addition, as the demand seen in New Jersey in online sports betting continues to grow, there will be job creation in the industry.
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