Online sports wagering was much more popular compared to its land-based counterpart, as a total of $918.4 million from the $1.01 billion revenue came from online sportsbooks. Nine land-based casinos and three racetracks recorded a total of $92.7 million in sports betting handle.
The reported revenue (after paying the expenses) for sportsbooks and racetracks in New Jersey increased by 83% compared to September last year. The income reported in September 2021 was $82.4 million – almost double the $45 million recorded in September 2020.
All in all, the reports from the New Jersey Division and Gaming enforcement show that there’s a significant increase in popularity in sports betting in New Jersey. Still, the question remains — will this trend continue into the future?
Will New Jersey continue to be the sports betting leader?
The truth is that a lot of sports betting revenue in NJ comes from the neighbors — particularly New York residents. Since sports betting is not yet legalized in the Empire State, New Yorkers are often found crossing the Hudson River to place wagers on their favorite sports, especially during the big events, such as the Super Bowl and the NBA Finals.
However, that may change in 2022, as there’s already a huge initiative in New York to legalize sports betting in the upcoming year. This could affect NJ’s revenues in the future, as many New Yorkers will stay at home to place bets on the Yankees and Giants.
Still, there’s hope for New Jersey. Namely, the proposed tax for sports wagers in New York is as much as 60%. On the other hand, that tax is only 20% in New Jersey, meaning sportsbooks and online sportsbooks will be able to offer better odds, bonuses, and other deals to players in New Jersey. It’s a matter of time when New Yorkers are going to realize that it still pays off to cross the Hudson River and get better deals.
And there’s one more thing — online casinos. The online casino industry in NJ has been thriving, partially because people from other states, including New York, are visiting NJ to play their favorite games. On the other hand, there are no plans about legalizing online casinos in New York at the moment, which means we’ll continue to see many gambling lovers from NY visiting NJ.
Will the outcome of the NJ experience prove to be a lesson for California and Nevada?
California is also involved with its own online gambling discussion, with tribal land-based casinos, the cities, and the large online gambling gearing up for a referendum battle in 2022. Some sides look at banning online gambling overall – it will be interesting to see if online sports betting and casino is allowed from 2023, and how that might affect revenues in Nevada. Many Californians are known to travel to Las Vegas to gamble – will they still do so when they gamble from the comfort of their own homes?
Much regarding the online sports betting legalization in New York is up in the air at the moment. Therefore, we’ll have to wait and see how the legislators will proceed. Until then, New Jersey remains the undisputed king of online sports betting, and it will continue to be for at least a couple of months, but perhaps even longer.