Changing US Gambling Laws Opening Up Opportunities
As legalized sports gambling begins in New Jersey, NFL wagers will go live in 14 different venues in the state. The league has already allowed casino advertising at game stadiums. Now, the New York Jets are trying to cash in on the opportunity. The team is looking for gambling venue sponsors, willing to spend $750,000 to $1 million annually. The Dallas Cowboys have taken the lead by partnering with WinStar World Casino in Oklahoma.
The Giants and the Jets have not confirmed their acceptance of casino and sports betting ads yet. Caesars Entertainment and Monmouth Park received online sports betting approvals from the New Jersey Division of Gaming on Friday. On the other hand, Tropicana Atlantic City and The Hard Rock Hotel & Casino have applied for sports betting licenses. At least eight New Jersey casinos and racetracks are expected to run in-person sportsbooks for the 1 pm games. Six additional online betting venues will be operating for the games.
According to New Jersey law, only casinos and racetracks can allow sports betting in the state. DraftKings and FanDuel have an advantage in the state as they already have affiliations for online wagering. Chris Grove, managing director at gaming analyst Eilers & Krejcik, suggests that when sports betting starts in the Garden State, its revenues could leave Nevada behind by the year 2021. By this time, New Jersey sports books will earn $442 million in profits on $3.4 billion in sports betting revenue. State lottery bets roughly equal this number at present.
Grove added that New Jersey will follow Nevada’s lead and about 50% of their sports bets will be made via mobile devices. Taxes in the state could also lead to maximization of sports wagers. It currently taxes 9.75 percent on physical casinos and racetrack profits and about 14.25 percent for online betting profits. As the NFL seasons begin, the state will likely have the largest population involved in football betting. Their numbers will be followed closely by Connecticut, Oregon, and Pennsylvania.
It could also be in an advantageous situation as New York’s local market will not enter the race till 2021, at least in online betting. Though gamblers in the Garden State have bet $55 million on sporting events in two months, Grove suggests that the number could draw closer to $500 million in September. The beginning of the football season and a higher number of bookmakers will contribute to the revenue spike.
The online sports betting market will grow exponentially to $16 billion from $3.5 billion today when most states legalize it.