Here’s a crazy stat: Gaming research firm Eilers & Krejcik estimates that New Yorkers wagered over $800 million in New Jersey during 2019, indicating that they control about 20% of the state’s overall handle.

They have a significantly larger population-NJ has ~9 million residents to Nevada’s ~3 million-and mobile betting is still illegal in neighboring New York, a state with 20 million people. It was always a matter of time before New Jersey overtook Nevada as the sports gambling capital of the United States. NJ Taxes From Casinos, Racetracks & Online Gambling The point being, even with state-wide gambling revenue down last year due to COVID-19, New Jersey ended up increasing its tax collection due to the higher rate that online revenue provides. Keep in mind, traditional casinos are taxed at 8% of sales, while online games have a rate of 15%, and sports wagers are taxed at 8.5% if they are placed in casinos or 13% if placed online. Still, the state ended up increasing its total tax collection due to the rise of sports betting-up 33% YoY to $398 million-and the higher tax rates that accompany it.

After COVID-19 wrecked the state budget in New Jersey last year, a surge in online gambling ended up providing relief and bailing out the casino industry.įor example, New Jersey’s nine land-based casinos generated $1.5 billion in total gambling revenue last year, down 44% from the prior year. 3+ years ago, so scaling a new business to a $1 billion monthly handle and millions of individual bets within 36 months is quite the accomplishment. Legal sports betting is an industry that literally didn’t exist in the U.S. The September handle generated $82.4 million in sports betting revenue-a national monthly record-and 92% of bets were done outside of a physical sportsbook. sports betting history to pass the $1 billion in sports bets in a single month. New Jersey now regularly sees between $700 million to $900 million in monthly bets, despite COVID-19 dropping volume more than 90% for three months in 2020.Įven better, with $1.01 billion in wagers last month, New Jersey is the first state in U.S. Supreme Court repealed the Professional and Amateur Sports Protection Act (PASPA) in 2018, paving the way for states to self-regulate retail & online sports betting, New Jersey signed Assembly Bill 4111 to legalize sports betting immediately.įast forward three years, and the results have been incredible. New Jersey has quietly become the sports betting capital of the United States.

Nj sports betting revenue