New Jersey is the reason sports betting is legal in the United States.
Governors Chris Christie (and later Phil Murphy) sued the federal government for its ban on new sports betting legislation. The Supreme Court agreed with New Jersey and overturned the Professional and Amateur Sports Protection Act of 1922 (PASPA) in May 2018.
Since 2018, New Jersey has become one of the biggest sports betting markets in the country. The state brings hundreds of millions of dollars in tax revenue from New Jersey sportsbooks annually. The New Jersey sports betting market has been so successful because state lawmakers are always trying to innovate and stay one step ahead of the rest of the country.
In this article, we will look at some changes to the New Jersey sports betting market in 2024 and predict some things that could happen in 2025.
New Jersey Sports Betting: 2024 Highlights
April 3: Following a soft launch in March 2024, Prime Sports officially launched its New Jersey sportsbook. The company prided itself on being the go-to place for high-stakes bettors looking for sharp betting odds.
April 8: State Senator John McKeon introduced Bill S3064, proposing to raise the New Jersey sports betting tax rate from 14.25% to 30%. For context, neighboring New York has a 51% tax on sports betting revenue.
April 11: In response to a letter from NCAA President Charlie Baker, Garden State lawmakers proposed Assembly Bill 4905, which would ban New Jersey sportsbooks from accepting college player prop bets.
May 8: After acquiring PointsBet’s US sportsbook operations in April, Fanatics Sportsbook launched in New Jersey. Unlike other NJ sportsbooks, Fanatics opted for a mobile-only approach with no traditional sports betting site for PCs.
May 14: Kindred Group shut down Unibet in New Jersey, Pennsylvania, Virginia, Arizona, Indiana, and Ontario. The company’s CEO, Henrik Tjärnström, and CFO, Johan Wilsby, resigned after the significant decision to leave the North American sports betting market.
June 24: Sports betting trading platform Prophet Exchange ended its New Jersey sportsbook. New Jersey was the only state where Prophet Exchange operated. The company’s COO and co-founder Jake Benzaquen promised the site will be “back in more states soon.”
July 31: Super Group officially closed Betway’s U.S. sports betting site, three weeks after announcing it would do so. Betway Sportsbook left New Jersey, Ohio, and several other states. However, the Betway online casino site is still available and operating in New Jersey.
Nov. 14: The New Jersey Assembly Tourism, Gaming and the Arts Committee advanced Assembly Bill 4905 with a 5-0 vote. This is the last step before the New Jersey Legislature can vote on the bill.
Sports Betting: Where Things Stand
The New Jersey sports betting market is one of the oldest in the country, launching soon after the U.S. Supreme Court struck down PASPA. If you are 21 or older, you can bet on various sports, including lesser available markets like esports, the NFL Draft, and college sports. However, in-state college teams like Rutgers are off-limits, and college player prop betting might be banned soon.
There are currently 13 legal New Jersey sportsbooks, including:
- bet365
- BetMGM
- betPARX
- BetRivers
- Borgata Sports
- Caesars Sportsbook
- DraftKings
- ESPN BET
- Fanatics Sportsbook
- FanDuel
- Golden Nugget
- Hard Rock Bet
- Prime Sports
- Sporttrade
New Jersey Sports Betting: What's Next?
Some of the proposed tax changes we covered above may impact the number of sportsbooks available in New Jersey, but we doubt it. New Jersey sportsbooks brought in over a billion dollars in gross revenue in 2024. Operators are on pace to bring in a similar amount in 2024. Only New York, which has a significantly higher tax rate than New Jersey's, had more revenue in 2023.
While the number of New Jersey sportsbooks isn’t likely to change in 2025, some of the wagers these sites can accept definitely will. Assembly Bill 4905, which would ban college player prop betting in New Jersey, is on track to be passed in early 2025.
New Jersey Sports Betting: Notes and Quotes
Senator John McKeon in an op-ed, presenting an argument for why the New Jersey sports betting tax rate should be increased:
"Online gambling is a gold rush bringing economic windfall to New Jersey…It’s absurd that New Jersey’s tax rate on online gaming and sports betting is less than half that of neighboring states. For comparison, New York’s online sports betting operators pay 51%; in Pennsylvania, it’s 36%."
"I believe that it is our responsibility to ensure that we set the best example we possibly can for all others who wish to follow our lead. Even as a staunch supporter of the sports betting industry, I believe it is incumbent upon us to recognize the incredible pressures that college athletes face between their academic and athletic responsibilities."
"The cost reduction actions announced today are both necessary and decisive. While it is never a desire to inform valued colleagues of redundancies, this puts us in a stronger position to secure long-term growth for Kindred across our locally regulated core markets."
