New Jersey Hearing Explores the Impact of Online Sports Betting

Economic Benefits of OSB

Industry supporters, such as Jeremy Kudon, President of the Sports Betting Alliance, highlighted the economic benefits of online sports betting. This industry has created over 4,000 jobs in northern New Jersey and has brought significant economic growth to the state.

In the first nine months of 2024, over $9.2 billion in legal sports bets were placed in New Jersey, generating $835 million in revenue for casinos, racetracks, and their online partners. More than $105 million in online sports betting taxes were paid to the state treasury during this period, with an additional $2.2 million from retail sports betting.

On the other hand, addiction treatment professionals, such as Felicia Grondin, Executive Director of the Council on Compulsive Gambling of New Jersey, have voiced concerns about the impact of online sports betting on gambling addiction.

Potential Risks

Grondin testified that “you can lose tens of thousands of dollars in minutes, simply by picking up your phone.” Over 90% of sports bets in New Jersey are placed online. Since New Jersey’s Supreme Court victory in 2018, calls to the agency’s 800-GAMBLER helpline have risen by 277%, many from young adults. Additionally, 14% of sports bettors in New Jersey have reported suicidal thoughts, and 10% have attempted suicide.

Concerns have also emerged about the impact of online sports betting on the finances of Atlantic City casinos, which rely heavily on in-person gamblers. Christina Renna, President of the Chamber of Commerce Southern New Jersey, noted that while additional jobs and revenue benefit the casinos, the core business of brick-and-mortar gaming—money won from on-site gamblers—has not returned to pre-2019 levels seen before the COVID-19 pandemic.

Lori Kalani, Director of Responsible Gaming at DraftKings, stated that her company—and the industry as a whole—takes customer protection seriously. DraftKings employs 60 staff members dedicated to responsible gambling measures and regularly reaches out to customers whose betting behaviors indicate potential issues, offering support and, in severe cases, suspending or closing their accounts.

Additionally, Tim Buckley, Senior Vice President of the NCAA, endorsed a New Jersey bill that would ban betting on college sports outcomes to protect student-athletes from online harassment and threats.