New Jersey recently celebrated their fifth anniversary of legalized NJ online gambling, and all signs point to NJ sports betting being a great success. The possibilities are limitless for advancement as annual revenues soar over $250 million.
Not only has the state received over $175 million in tax revenue from online gambling in New Jersey and paved the way for easy-to-use online sportsbooks like DraftKings Sportsbook, but it has also been the benchmark used for other states that look to legalize gambling, including PA online casinos and Rhode Island sports betting.
It started off in 2013, as the New Jersey Division of Gaming Enforcement was tasked to create online gambling in New Jersey that would be in line with the progress of the online gambling industry and create tax revenue for the state.
NJ Online Casinos and NJ Sports Betting Revenue Skyrocket Over Past Five Years
Former Governor Chris Christie was the one to sign NJ internet gambling into law on November 26, 2013, and within the first month of online gambling in New Jersey, there was about $1 million in revenue with around $147,000 collected in state taxes off of it.
Now the numbers are even more astronomical than George Rover and David Rebuck from the New Jersey Division of Gaming Enforcement could have ever envisioned when they were first tasked with NJ sports betting going live in 2013. In October 2018, two dozen licensed sites drew close to $27 million in revenue and over $4 million in tax revenue for New Jersey.
Creating regulations, figuring out licensing and doing technical testing of all the online betting platforms was an intense task, but Rover said of Rebuck:
“We didn’t know a lot about online gaming. Dave Rebuck was the perfect person for the job because he just gets a broad array of issues, and he knows how to work really well with his staff and he empowers his staff. He also embraced us working with operators overseas who clearly had more experience than we did in the online market. When you put those two things together, I think that’s the only reason it got done on time, and it was, I would say, a hundred percent successful.”
Current numbers have tax revenue from online sports betting in New Jersey reaching over $175 million and helped to shore up land-based casinos in Atlantic City who now attract younger clientele who may have been enticed by online sports betting and DraftKings Sportsbook.
As revenue continues to climb in the state, more licensed online NJ sportsbooks will seemingly continue to draw money for the state and will be used as a launching-off point for many other states who want to start online gambling in the US. The next five years will be even more interesting to watch if these trends hold true.