When New Jersey legalized sports betting in June, there was much discussion about the potential tax windfall the move would generate for state coffers. But a little-discussed aspect of the new law is that it also represents a big win for the state’s tax collectors.
Bettors lost $16 million to the NJ taxman in July, more than twice as much as was generated by traditional casino gambling in the state during the same month. That number is expected to grow as legal sports betting becomes more popular.
In addition to taxing bets at a rate of 9.75%, New Jersey also imposes a tax on casino gaming revenue of 13%. That means that for every $100 bet on sports, the NJ taxman collects nearly $14.
The tax windfall is not just a New Jersey phenomenon. States that have legalized sports betting are expecting to generate millions of dollars in new revenue from the activity. Delaware, which began taking bets in June, collected more than $1 million in taxes in its first month of operation. And Nevada, which has had legal sports betting since 1949, generated $27 million in taxes from wagers last year.
The potential tax revenue from legal sports betting has caught the attention of lawmakers in other states, many of which are currently considering legislation to legalize it. At least seven states – Illinois, Indiana, Iowa, Kansas, Maryland, Massachusetts and Michigan – are considering bills that would legalize sports betting this year.
The rise in popularity of legal sports betting has also drawn the interest of casinos and other gaming operators, who see it as an opportunity to boost their revenues. MGM Resorts International, one of the largest casino operators in the country, recently announced plans to offer online sports betting through its own website and through partnerships with other gaming companies.
While there is no question that legalizing sports betting can be lucrative for states and casinos, there is some concern that it could also lead to increased corruption and cheating in collegiate and professional sports. In order to address that issue, New Jersey has imposed stiff penalties for anyone caught tampering with sporting events or engaging in other forms of cheating.
So far there have been no reports of any major cases of cheating or corruption associated with legalized sports betting in New Jersey or any other state where it is legal. That may be due in part to the fact that most bets are now being placed through licensed and regulated casinos rather than through illegal bookmakers or offshore websites.
As states legalize sports betting, they are realizing the potential for significant revenue growth. In New Jersey, for example, sports betting brought in over $300 million in its first year of operation. Other states are expected to see similar success.
This new stream of revenue is a welcome addition to state coffers. It allows states to invest in important initiatives, such as education and infrastructure. And it helps to offset some of the costs associated with legalizing sports betting, such as regulating and policing the industry.
States that have legalized sports betting are seeing impressive revenue growth. In New Jersey, for example, sports betting brought in over $300 million in its first year of operation.
There are a few reasons for this success. First, more people are interested in gambling on sports than ever before. And with the legalization of sports betting, they now have a legal way to do so.
Second, the regulatory framework surrounding sports betting is relatively simple. This makes it easy for people to participate in the industry, which increases revenue growth.
Finally, the tax rates on gambling profits are relatively low. This encourages people to gamble and keeps businesses involved in the industry profitable.
State governments will continue to benefit from legalized sports betting for many years to come. The industry is growing rapidly and shows no signs of slowing down. As more states legalize sports betting, the amount of revenue generated by this activity will only continue to increase
In his Budget Address on Tuesday, Governor Murphy proposed legalizing sports gambling in New Jersey to help boost the state’s economy.
“New Jersey is the Garden State. Let’s make sure it’s also the Sports Betting State,” Murphy said.
Murphy noted that New Jersey already has a robust casino industry, and that legalizing sports betting would bring in an additional $500 million in annual revenue. The money would be used to fund education and infrastructure projects.
Opponents of legalizing sports betting say that it could lead to addiction and other social problems. But Murphy argued that regulating the industry would actually help protect consumers.
“Legalizing sports betting is the right thing to do for our economy and our state,” Murphy said. “It will create jobs, generate tax revenue and support our important industries like tourism.”
The state of New Jersey reaped the majority of sports betting revenue in the Garden State in 2018, a new report reveals.
NJ Advance Media analysed financial data from the state’s Division of Gaming Enforcement and found that the state generated nearly half of all sports gambling revenue last year. That amounted to $24.2 million in taxes for state coffers.
Casinos and racetracks captured the majority of that money. Of the $508 million gambled on sporting events, casinos took in $469 million and racetracks netted $39 million. Bettors lost $461 million at casinos and won $8 million at racetracks.
The Borgata Hotel Casino & Spa was by far the biggest winner, accounting for nearly a third of all casino sports bets. Resorts Atlantic City was a distant second, with less than 10 percent of the market share. Monmouth Park Racetrack led all tracks, taking in more than twice as much as any other venue.
Revenue from sports betting has been declining since its peak in August, when it accounted for more than 60 percent of all gambling revenue in the state. In December, it made up just 33 percent of all gambling receipts. That could be due to increasing competition from neighbouring states, which have also legalized sports betting in recent months.
New Jersey sportsbooks took in over $100 million in revenue in its first year of operation, according to figures released this week by the New Jersey Division of Gaming Enforcement.
The state’s nine casinos and racetracks generated a total of $107,013,768 in sports betting revenue from July 2018 through June 2019. The Meadowlands Racetrack led the way with $33,411,548 in bets placed, while Ocean Resort Casino saw the biggest take in taxes and fees with $3,664,628.
The revenues come just a few months after the U.S. Supreme Court ruled that individual states could legalize sports betting if they choose to do so. New Jersey was one of six states to take advantage of the ruling and has seen success in its first year of operation.
State Senator Jim Beach attributed the strong performance to the state’s partnership with major professional sports leagues and successful marketing campaign. “This is a true win-win for New Jersey, as we have generated new economic development opportunities and provided our residents with a new entertainment option while generating tax revenue for our state,” Beach said in a statement.
While other states have yet to see the same level of success as New Jersey, the industry is expected to grow rapidly in coming years. A recent report from Eilers & Krejcik Gaming LLC projects that U.S. sports betting revenue will grow from $4.2 billion this year to $20.8 billion by 2023.