Since a landmark ruling by the Supreme Court in 2018, New Jersey has been able to regulate online sports betting, generating millions in tax revenue for the Garden State each year. It even eclipsed Nevada, the traditional home of gambling in the United States, in 2019 – prompting 18 states to follow suit and legalise online sports betting.
Just across the Hudson River in neighbouring New York, online sports betting remains illegal. But a big push for regulatory legislation is afoot, with Senator Joseph Addabbo petitioning Governor Andrew Cuomo to sign a bill next year. Many in New York currently access online casinos and sportsbooks when they visit New Jersey, sometimes specifically for that purpose.
But what will it mean for the Jersey gambling scene when New Yorkers can play from their own state? Let’s take a closer look.
Sports betting in NJ
New Jersey has long been a centre of global gambling, with iconic casinos in Atlantic City and racetracks dotted liberally around the state. But when online sports betting was legalised two years ago, few foresaw the impact it would have on the local gambling industry.
Despite the effects of the global coronavirus pandemic, punters in New Jersey placed a nationwide record for wagers in a month, with $668 million spent at the bookies. The previous record was $614 million spent in Nevada in November 2019.
Bear in mind that land-based brick-and-mortar casinos are only allowed to operate at 25% capacity, and that makes the numbers even more staggering. All of this is a big shot in the arm for the New Jersey economy, giving it a major boost at a time when it, like most others, is stricken by the pandemic.
One reason why sports betting has soared is the resurgence of sporting events, particularly baseball, football and basketball. For sports fans, placing bets provides a way to interact with the game at a time when events are being held behind closed doors. All in all, this marks only a 7.5% decline for the gambling industry from this time last year.
NY set to legalise
Across the Hudson in New York, there are promising signs for the sports betting industry. The regulation at the state level of sports betting has been in the offing for a while, but with economic pressure and with NY facing a major budget deficit – which was the case even before 2020 events – the stakes have been raised.
Senator Joseph Addabbo has been lobbying Governor Cuomo over the issue, pushing for legislation to legalise online sports betting as early as next year. When Cuomo announced that race tracks across the state resumed running on June 1st, it stimulated the economy somewhat, but officials only need look to their neighbours to see how important online gambling is – Addabbo is throwing figures around in the region of $200 million revenue for the state per annum.
Looking at the success of the 18 states who have moved forward with legislation, it would be hard to argue with him.
How will NY legislation affect NJ?
There is no question that a significant portion of sports bettors in New Jersey actually cross state lines to place bets. GPS systems in smartphones and tablets allow online casinos and sportsbooks to detect the location of the player. So New Yorkers who travel to Jersey to bet almost certainly won’t make that journey when it becomes legal (unless they work in NJ).
Figures aren’t that precise, but the heady heights of August 2020 are unlikely to be reached again, and New Jersey’s monopoly on online sports betting looks set to end.
The Garden State still holds a distinct advantage when it comes to land-based casinos though. New York only has four such establishments, whereas its neighbour boasts numerous casinos across the state, and a jewel in the gambling crown in Atlantic City, home of grand and iconic casino hotels.
So, overall, regulatory measures in New York are likely to have some effect on online sports betting revenue in New Jersey, but the industry is strong enough to withstand the impact.
More and more US states are licensing online sportsbooks – the New Jersey model has shown what a positive effect it can have on the local economy. And with states reeling from the effects of COVID 19, legalising gambling seems like a sure bet.
