It’s only been a few years since New Jersey opened the legal gates to make sure that they and many other states had the option to enjoy and iGaming industry that included sports betting, just like Nevada had for years before.
Gambling isn’t new to the US, but the limitations and legislation vary from state to state.
The first land-based casinos began in Europe while the first gaming machines were created in New York. By 1994 Barbuda and Antigua passed the free trade and processing act to grant licenses to open online casinos.
The Kahnawake Gambling Commission was established in 1996 to supervise internet gaming from the Mohawk Territory of Kahnawake and to award gaming licenses to many of the world’s online casinos and poker rooms. This was to make regulated online gambling firms’ operations fairer and more transparent.
Each state had its own laws when it came to online gambling, and Las Vegas, Nevada, became a hotbed for all types of gambling action – since it also had full sports betting options.
In 2018 New Jersey led the way for many other states to be able to legally offer sports betting, and PASPA was overturned.
Since then, we have seen an incredible rise in the popularity of iGaming, an influx of innovative apps, mobile-optimized gaming sites, and the use of the latest technology. The casino industry seized the opportunity, along with states like NJ, and saw huge revenue rises.
How Has New Jersey Flourished Since Sports Betting and iGaming Were Legalized?
In January of 2022 alone, New Jersey saw its residents spend a huge $1.35 billion on sports, and its iGaming industry also saw a record high. Of the total revenue, online casinos made up $135.3 million of the iGaming total, while $2.6 million was taken from poker games (peer-to-peer).
For a relatively young industry in New Jersey, you might be surprised to know that in 2020, while Nevada took the top spot in terms of casino revenue, New Jersey was second. Facing a huge competitor like Nevada in the gambling market, New Jersey’s casino revenue is continually growing, allowing for the development of some of the best NJ online casinos. They are securing their notoriety as an iGaming and sports betting titan.
The state even fared well when neighboring state New York made mobile betting available.
Why Did New Jersey Want Sports Betting and iGaming Legalized?
New Jersey’s successful supreme court case meant that they didn’t just open the doors for their state, but they also put power in other states’ hands. But what set New Jersey apart was that it had some of the infrastructure required to handle the changes.
While the billions in potential revenue was a factor, it wasn’t just about that for NJ. On a more local level, the change in the law has seen its own horse-racing industry, and casinos offer hundreds of new jobs to its residents.
A further factor was that, while only Las Vegas had full-scale sports wagering, and another three states were allowed to offer some form of sports betting, it put all other states at a disadvantage for tourism.
Not only that, but it meant that residents were forced to bet illegally or travel to place their bets. It was causing huge losses in potential revenue.
New Jersey is now seeing record-breaking revenues, and the growth in the market has been phenomenal. In fact, it surpassed all of the predictions made.
For New Jersey, there were multiple factors that drove the battle to legalize sports betting in more states. As a state they were set to benefit from a local level, as well as statewide.
Since 2019, New Jersey has experienced incredible growth.
Record-Breaking Figures for New Jersey
By November 2021, NJ was smashing, surpassing, and setting new records all the time.
In November, New Jersey sportsbooks pulled in $1.26 billion in wagers, narrowly missing the $1.30 billion they saw in October. It was the third month in a row that bettors in New Jersey have wagered more than $1 billion.
The sportsbooks in New Jersey, on the other hand, brought in $114.8 million, a 9.1 percent increase. This was a new high for revenue, topping the $84.2 million held in October by 6.5 percent.
Handle: the amount of money accepted in wagers
An incredible statistic is that in November, 90.5% of the total handle was made up of online wagers, showing that the online casino and betting world has exploded in terms of popularity.
The front runner in terms of the most popular sport is basketball, with football hot on its heels. Basketball had a handle of $2.3 billion, while football saw $1.6 billion.
What is the Future of iGaming in New Jersey?
With eight years of online betting and a little over three years of sports betting, the iGaming industry in New Jersey is thriving.
According to Legal Sports Report, since June 2018, there has been no state with a higher handle or more revenue from sports betting than NJ. And further to the highest handle, 80% of its handle is from sportsbook websites and apps.
The global outlook for the iGaming industry is positive and set for growth. They are quick to adopt new legislation, create partnerships, and implement innovative technology. The global iGaming market is predicted to grow to $112.09 billion by 2025.
With continued growth, there are more jobs being generated too. This means that the economy and the people of the state are also benefiting from the rapid expansion of iGaming in New Jersey.