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The history of sports betting in the U.S. has had its ups and downs, but if it weren’t for New Jersey’s decision to pursue a legal battle against existing regulations, the landscape of betting in the country would be very different.
However, recent news that New Jersey’s year-on-year sports betting revenue figures were down significantly will come as a shock to operators.
New Jersey’s record as the most progressive state in the country has seen it move to legalize many online betting markets and is one of only six to currently offer online casino betting.
Casino and Poker expert Daniel Smyth explains that offshore poker sites and other operators governed by external jurisdictions still see a lot of U.S. traffic with people looking for the best offers, selection of games, and quality of experience.
Offshore operators are a threat to existing state-licensed operations but also provide bettors in more prohibitive states with more options. But are they the cause of New Jersey’s revenue slump?
New Jersey and Sports Betting
Sports betting in the USA was extremely limited before New Jersey’s legal battle led to the Supreme Court overturning the Professional and Amateur Sports Protection Act (PASPA) of 1992.
This decision allowed states to decide whether or not to allow sports betting operations, with many deciding to do so.
While only 6 states allow online casino betting, 30 allow online sports betting and a further 8 (and the District of Colombia) have land-based sports betting facilities. Following this momentous decision, New Jersey moved quickly with Assembly Bill 4111 signed by Governor Phil Murphy.
New Jersey Sports Betting Revenue Figures
Despite being one of the driving forces behind America’s sports betting industry, New Jersey posted figures that showed a 24% year-on-year decline in June. This anomaly comes despite overall gambling figures in the state recording revenue of $491 million, an increase of 7.4%.
June saw $748 million spent on sports betting in New Jersey, with $27.1 million in revenue following expenses and payouts. The overall spending shows a small increase on the usual sports betting figures for June, but the drop has been put down to bad luck on the operator’s end.
The Cause of New Jersey’s Sports Betting Revenue Drop
The sports betting industry works in favor of the operator, much like a casino will have its edge to ensure it always remains in front. However, revenues can fluctuate based on the odds that are being set, the bets being laid, and the outcomes of sporting events.
In the case of June 2024 compared to June 2023, more bettors backed successful selections, despite the operators still coming out ahead.
In order to remain competitive, operators must offer fair and enticing odds on different events. If they fail to do this, offshore and crypto gambling operators will, leading to low customer retention figures and loss of revenue in another way.
New Jersey sports betting operators will undoubtedly be disappointed with this drop in revenue, but it won’t be a source for concern unless figures continue to plummet.
If you or anyone you know has a gambling problem, call 1-800-GAMBLER.
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Publish date : 2024-08-08 07:08:00
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