TRENTON, N.J. — New Jersey’s foray into online sports betting has sparked a dual narrative of economic growth alongside growing concerns about gambling addiction. During a recent legislative hearing, stakeholders highlighted both the benefits and drawbacks of this booming industry, with particular focus on its impact on Atlantic City’s traditional casinos.
New Jersey has emerged as a national frontrunner in sports betting following a pivotal U.S. Supreme Court ruling in 2018 that lifted a nationwide ban, allowing all states the option to regulate the practice. As of now, 38 states have begun offering sports betting services. While many voices praised the economic advantages brought forth by online sports betting, alarming testimonies regarding gambling-related issues were equally prevalent.
Felicia Grondin, executive director of the Council on Compulsive Gambling of New Jersey, pointed out the alarming speed at which individuals can lose substantial amounts of money through mobile betting. “One can lose tens of thousands of dollars within minutes simply by picking up a cell phone,” she stated. Presently, over 90% of sports betting activity in New Jersey occurs online.
On the other hand, Jeremy Kudon, president of the Sports Betting Alliance—a group that includes major players like FanDuel, DraftKings, and BetMGM—emphasized the economic boom attributed to online sports betting. Kudon noted that the industry provides over 4,000 jobs in northern New Jersey and has significantly boosted state revenues, with $9.2 billion wagered during the first nine months of the year, yielding $835 million in revenue for casinos and racetracks. Tax revenue from online sports betting has also contributed more than $105 million to state coffers in this timeframe.
However, this influx of funds isn’t solely retained by casinos; a portion is allocated to various external parties, including technology providers and sports book operators. Christina Renna, president of the Chamber of Commerce Southern New Jersey, acknowledged that while new jobs and revenues have benefited the casinos, they still face challenges as in-person gambling has not yet returned to pre-pandemic levels. “Those 22,000 casino jobs need focus, care, and attention, too,” she remarked.
The hearing also underscored serious concerns regarding gambling addiction, with Grondin revealing that the prevalence of problem gambling in New Jersey stands at 6%, significantly higher than the national average of 1% to 3%. Following the legalization of sports betting, calls to the state’s 800-GAMBLER helpline surged by 277%, with many of these calls coming from younger demographics.
Lori Kalani, a responsible gaming officer at DraftKings, assured attendees that the company is dedicated to customer protection, citing her own background related to gambling addiction. “Online gaming is for fun and entertainment,” she asserted, highlighting her company’s proactive approach in identifying at-risk gamblers and offering assistance. DraftKings has established a team of 60 employees focused on responsible gaming initiatives.
Additionally, Tim Buckley from the NCAA expressed support for legislation aimed at banning bets on college athletes’ statistical performances. He referenced past incidents where athletes faced harassment from bettors expressing dissatisfaction over their performance. Lia Nower from the Center for Gambling Studies at Rutgers emphasized that a significant portion of gamblers engage in live betting, a practice often fueled by impulsive decision-making and potential substance use. She revealed troubling statistics, noting that 14% of New Jersey sports bettors have contemplated suicide, with 10% having attempted it.
The dialogue surrounding online sports betting in New Jersey illustrates a complex relationship between an economically flourishing industry and the societal implications that require vigilant attention and proactive measures.