New Jersey’s Sports Betting Could Surpass Nevada Within 3 Years
New Jersey’s brand-new sports betting industry could potentially take over the established Nevada market within just three years, according to a new analysis by the prestigious Eilers & Krejcik Gaming.
Eilers & Krejcik Gaming released a report this month that says they believe that New Jersey’s revenues from sports betting will overshadow Nevada’s in 2021. The consulting firm has estimated that “The Garden State” will make roughly $442 million in 2021, where Nevada will only take in $410 million. This is based on the firm’s authors saying that there could be up to 20 online sportsbooks operating in New Jersey by the end of this year. They believe that eight online sportsbooks will be running by next week.
In the report, the authors said the following:
“We believe a combination of factors could push the nascent New Jersey Sports betting market past the more mature Nevada market by as soon as 2021.”
Sports Betting Revenue
The New Jersey Division of Gaming Enforcement said that sportsbooks in NJ raked in over $3.8 million in revenue this July, with the most raised by Meadowlands Racetrack, Ocean Resort, and Monmouth Park racetrack. Sportsbooks only opened for operations in June, and in that month, NJ casinos had a revenue of $3.5 million dolalrs.
How NJ Will Beat Out Nevada
There are a number of factors which Eilers & Krejcik considered before making the announcement that New Jersey’s sports betting revenue could overtake Nevada’s in 2021:
- Very high rates of black market recapture (when legal sportsbooks pull in revenue that previously would have gone to black market bookies).
- A change in how major-card issuing banks see processing transactions for sports betting.
- Cutting-edge products, highly competitive pricing, industry leading promotions for online sports bettors.
- New construction of multiple destination sportsbooks near out-of-state and in-state population centers.
- Cross-selling between online casino gaming and online sports betting.
Sports Betting in New Jersey
The first legal sports bet was placed on June 14th this year, by New Jersey Governor Phil Murphy at Monmouth Park Racetrack. Before this monumental action, sports betting had never been done legally in the Garden State. This was due to a 26-year old federal ban on sports betting that had banned sports gambling anywhere other than in Nevada. The Supreme Court overturned that ban in May and several states were ready to push through legislation to allow it, since the court’s ruling left it up to individual states to make their own laws. New Jersey voters agreed way back in 2011 that they would change the state’s constitution to legalize sports betting, so the state was ready when the 1992 law was overturned.
DraftKings made a deal with Resorts in New Jersey to offer online sports betting via an app, which made it the first one to go live outside of Nevada.
As of right now, New Jersey is one of five states with full-scale legalized sports betting, with the others being West Virginia, Delaware, Mississippi, and Nevada. Several states are getting ready to begin operations: New York, Pennsylvania, and Rhode Island. It’s expected that Pennsylvania could very soon have legal sports betting at the Parx Casino in Philadelphia, since it has a deal with online gambling company GAN. Their plan is to have things rolling before the end of this year.
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