State and National records were shattered in September 2021 after The Garden State reported that over $1 billion of sports betting wagers were placed.
Back in June 2018, New Jersey only had two retail sportsbooks to speak of. Fast forward a few short years and NJ is now home to an ever-growing market that currently hosts 19 legal online sports betting platforms and 12 retail sportsbooks. Popularity peaked in September 2021, but what does that mean for New Jersey folk?
Each month, the New Jersey Division of Gaming Enforcement releases the handle and revenue of the previous month. The handle refers to the amount that has been wagered by sports bettors, the revenue refers to the amount earned after winning tickets have been paid. From this, it is important to note that New Jersey taxes online sports betting at 13% and retail sports betting at 8.5%. But, where does that money go?
The Garden State has created the Casino Revenue Fund, as part of the 2020 New Jersey revised statutes. When reviewing “Title 5 - Amusements, Public Exhibitions, and Meetings
Section 5:12-145 - Casino Revenue Fund”, you will see that the money is used in the following ways:
The popularity of sports betting is forever growing in the Garden State, meaning that New Jersey betting sites could see some fantastic improvements and changes to the state over time. The 13% online sports betting tax and 8.5% sports betting tax is exceptionally competitive, too, especially when compared to the 51% tax that is applicable across New York. Unlike the many ways in which New Jersey opts to use any betting tax, New York plans two focus all funds on two key areas - education & youth sports.
Sports bettors and operators from the Garden State will have no doubt been keeping their ears to the ground awaiting confirmation of New York’s legal online market to officially launch. Although, based on geolocation transactions 2 weeks before and after, it would appear that New Jersey was unfazed by the launch after all.
Since the official launch back in January, the New York betting scene has witnessed the opening of over 1.2 million accounts, 878,000 unique users, averaging 1.3 sportsbooks per person. From these numbers, only 9.3% of players have opened accounts in New Jersey before.
When we also consider that 12.6 million transactions were performed two weeks prior to the New York launch and 13.1 transactions after, you could argue that the launch has helped New Jersey cement its position as the #1 spot for sports betting activity.