Sports betting became legal in New Jersey shortly after the US Supreme Court ruled against PASPA last summer. Since that time, New Jersey sports betting revenue has skyrocketed. This state is racking in the money right now, yet recent changes to the Wire Act could change all of this.
There’s no doubt that New Jersey is enjoying the revenue flow right now. We’re going to be discussing why the sports betting industry here is booming, and what could cause it to fall.
For many years, the US government used PASPA as a way to keep states from allowing sports betting. New Jersey challenged these laws in 2014, and in July of 2018, the Supreme Court ruled in the state’s favor. New Jersey almost immediately began allowing sports betting, and gambling revenue began increasing dramatically.
Today, land-based and online sports betting options are available in New Jersey. There are nine casinos inside the state, all of which offer at least some form of sports wagering options. These retail sportsbooks are hugely successful, particularly around major sporting events such as the Super Bowl.
A number of online sports betting companies are now available inside New Jersey. Major daily fantasy sports companies such as FanDuel have opened internet sportsbooks for residents in the state. Even some of the top online gambling sites in Europe are now entering this market.
With so many great options available, it’s no surprise that New Jersey sports betting revenue is absolutely soaring. The exact amount of revenue earned is staggering.
As we mentioned before, this state only began allowing sports betting in July of 2018. Since that time, nearly $2 billion has been spent on sports wagers. It’s an incredible figure that shows just how profitable the gambling industry can be for states.
Back in February, sports bettors in New Jersey spent over $320 million on Super Bowl bets alone. The state actually earned more revenue from Super Bowl betting than Las Vegas. With March Madness set to begin this month, analysts predict even more money will be earned than in February.
It’s clear that online and mobile betting is bringing in the majority of this revenue. According to multiple reports, online sports wagering brought in four-times the amount of money than from land-based casinos or racetracks. For that reason, New Jersey is pushing hard against the DOJ’s new Wire Act Opinion. Will they be successful?
New Jersey was one of the very first states to immediately voice disapproval over the DOJ changing its stance on the Wire Act. In case you’re unaware, the Department of Justice declared that all forms of online gambling are illegal under the Wire Act. It was a reversal of the 2011 opinion that claimed the Wire Act applied only to sports betting.
The DOJ gave states a 90-day period to begin adhering to the new opinion. Any online gambling companies still operating after this time could face heavy penalties. Many states, including New Jersey, New Hampshire, and Pennsylvania would lose out on millions of dollars if these laws are actually enforced.
Today, 15 different states are involved with legal disputes against the DOJ. It’s clearly having an effect. This government body has already been forced to extend its deadline by another 60 days. The Department of Justice may be held up in courts for months and could be forced to reverse their opinion.
New Jersey is leading the charge here. This state has been the gold standard of what legalized sports betting can do for a local economy. The one thing we do know is that they will not let this profitable industry slip away without a fight.
For now, New Jersey sports betting revenue continues to soar. March Madness may bring record sports betting numbers. It may not be long before every state in the country offers some form of legalized online sports betting.
Do you think the DOJ will change their opinion this year? Let us know what you think in the comment section below!
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