The Dual-edged Sword of Online Sports Betting in New Jersey: A Closer Look
Online sports betting has transformed into an economic powerhouse for New Jersey, generating substantial revenue and offering a new layer of engagement for sports enthusiasts across the state. Following a landmark 2018 U.S. Supreme Court decision that overturned a federal ban on sports betting, New Jersey emerged as a national leader in this lucrative industry. However, this growth does not come without drawbacks—rising concerns about gambling addiction, the potential impact on Atlantic City’s casinos, and the need for responsible gaming practices have surfaced amid ongoing hearings by the state Legislature.
A Booming Industry
The economic impact of online sports betting in New Jersey is significant. Through the first nine months of the year, over $9.2 billion was wagered legally, with around $835 million retained as revenue by casinos, horse tracks, and their online partners. This boom has not only generated over $105 million in taxes for the state but has also led to the creation of thousands of jobs. Jeremy Kudon, president of the Sports Betting Alliance, emphasizes the positive economic repercussions, noting that companies such as FanDuel, DraftKings, BetMGM, and Fanatics—who collectively hold 89% of New Jersey’s sports betting market—employ over 4,000 individuals in northern New Jersey alone.
Kudon described the online sports betting industry as a "tremendous economic success story," highlighting its essential role in revitalizing the state’s economy. The increased employment opportunities and influx of capital have notably bolstered local businesses and services.
Concerns About Gambling Addiction
Despite the tangible economic benefits, the rapid growth of online sports betting has raised critical alarms related to gambling addiction. Felicia Grondin, executive director of the Council on Compulsive Gambling of New Jersey, outlined the potential dangers: “One can lose tens of thousands of dollars within minutes simply by picking up a cell phone.” With over 90% of sports betting occurring online, the convenience and accessibility can exacerbate gambling-related issues.
Grondin pointed out a staggering statistic—between 1% to 3% of adults are classified as problem gamblers nationally, but in New Jersey, that figure is alarmingly higher at 6%. Call volumes to the state’s 800-GAMBLER help line have surged by 277% since the Supreme Court’s ruling, with many callers being young adults grappling with gambling issues. This stark reality necessitates a balanced approach to maintaining responsible gambling practices while reaping the rewards of the booming industry.
Impact on Atlantic City
The economic landscape of Atlantic City is closely intertwined with the rise of online sports betting. Christina Renna, president of the Chamber of Commerce Southern New Jersey, shared insights into how additional revenue sources are positively influencing casinos, while cautioning that their core business—revenue from in-person gamblers—has yet to rebound to pre-pandemic levels. “Those 22,000 casino jobs need focus, care, and attention, too,” Renna stated.
Many stakeholders at the hearing expressed the belief that online sports betting may lead to a decline in foot traffic to traditional casinos. As consumers grow more accustomed to the convenience of online wagering, maintaining that crucial in-person experience is essential for the health of Atlantic City’s casino economy.
Industry Response and Responsible Gaming Practices
In response to the growing concerns surrounding gambling addiction, industry leaders are taking measures to prioritize responsible gaming. DraftKings’ Chief Responsible Gaming Officer, Lori Kalani, highlighted that their company is committed to safeguarding consumer interests and promoting responsible betting behavior. She noted that DraftKings employs around 60 people specifically dedicated to responsible gambling initiatives and has proactive measures in place to identify and assist customers who exhibit problematic betting patterns.
The dialogue regarding sports betting legislation is evolving, with renewed calls for bans on wagers related to collegiate athlete performance—a measure advocated by Tim Buckley, a senior vice president with the NCAA. The necessity of protecting young athletes from online harassment and undue pressure has become increasingly apparent, particularly in light of testimonies revealing direct harassment narratives faced by college athletes from frustrated bettors.
A Profound Need for Awareness
The newfound accessibility of gambling has altered the betting behavior of many, with Lia Nower, director of the Center for Gambling Studies at Rutgers University, revealing that over two-thirds of gamblers now place live bets during games. This impulsivity, often influenced by factors such as alcohol, poses further risks for vulnerable populations—primarily young people. Disturbingly, 14% of New Jersey sports bettors reported having suicidal thoughts, with 10% actually attempting suicide, underscoring the dire need for effective mental health support and prevention strategies.
Conclusion: Striking a Balance
As New Jersey continues to navigate the intricate landscape of online sports betting, a collaborative effort from lawmakers, industry leaders, and mental health advocates is essential to harness its benefits while addressing the associated risks. The state stands at a pivotal crossroads, and how it chooses to structure this burgeoning industry will play a crucial role in shaping its future economic viability and the well-being of its citizens. The promise of revenue and job creation should not overshadow the pressing need for responsible gaming—ensuring that fun and entertainment do not come at the expense of public health and welfare.
