Sports Betting in New Jersey Soars in Short Time
Sports betting has only been available for about a year since PASPA was overturned. New Jersey has welcomed the betting industry with open arms through the creation of a regulatory framework. The nascent industry has made big strides within the state, especially when it comes to the popularity of online casinos.
Moreover, online bettors have seen new opportunities arise, through the creation of online betting exchanges. One intrinsic benefit of online sports betting is the privacy aspect. Rather than wagering bets in public, punters can now bet on their preferred outcome through their cellphones at home.
Online betting making huge impact
Recent data indicates a major shift in NJ residents’ preferred method of gambling. The New Jersey Division of Gaming Enforcement released April’s data on sports wagers. The total amount wagered on sports throughout April amounted to $314 million, of which $254 million were placed online.
These numbers represent a drop from March’s $372 million overall in wagers placed. However this can be attributed to April having lower activity in sports. Therefore, it should not be interpreted as a blow to the online betting industry as a whole.
Growth within the online gambling industry does not seem to be slowing down anytime soon. Since August 2018, New Jersey has witnessed an increase of $233 million in wagers placed online. The online industry continues to expand its reach, through the implementation of new laws and regulatory frameworks.
Other states feel tempted
The success of NJ’s online sportsbook industry should not be underestimated. A total of 81% of all wagers are now placed online, rather than going through traditional land based bookmakers.
Other states have noticed, tempted by the allure of higher tax revenue. New Jersey’s success is often cited as an example of the benefits of legalized online gambling. It is expected that more states will follow.
Iowa is one of the most recent states to follow in New Jersey’s footsteps. Iowa recently passed legislation, which legalizes online sports betting. The bill was signed by the states Governor Kim Reynolds. The state is now allowing those who are 21 or older to take part in online sports betting.
The Wire Act poses the largest roadblock to large scale legalization of the online betting industry. The act prohibits the transfer of money interstate, specifically as it relates to betting on sports.
This will stymie industry growth, and several states have already indicated a willingness to fight the Federal Government in court. One key ingredient to sports betting is the ability to wager bets against punters located in other states. Through interstate agreements, “betting pools” are former, which ensures better liquidity and rates.
Current federal regulations prohibit these measures, and will pose as a roadblock to the industry’s future growth.