- The Current Online Sports Betting Situation
- The History of Online Sports Betting in New Jersey
- Which Online Sports Betting Sites Are Legal?
- What Sports Can You Bet on Online?
- How to Bet on Sports Legally
- What Is the Future of Online Sports Betting?
- New Jersey Leading Charge for New Era of US Sports Betting
- New Jersey Online Sports Betting FAQs
|Quick Facts about Online Sports Betting in NJ|
|Median household income:||$68,357|
|Online sports betting legal since:||June 11, 2018|
|Licensed sportsbooks:||DraftKings, 888Sport, FanDuel, SugarHouse, Caesars Casino, BetStars, William Hill, playMGM, Hard Rock, PointsBet|
The Current Online Sports Betting Situation in New Jersey
We’re happy to report that sports betting is legal in New Jersey.
Let’s take a look at the major developments in bullet form and then we’ll dig into the details:
NJ Sports Betting Laws Summary
- New laws allow sports betting at casinos and racetracks in New Jersey.
- Online sports betting is allowed too but the sites must also operate a land-based venue for sports gambling.
- New sports betting websites have a 270-day grace period in which they can still operate online while building a land-based venue.
- Betting is allowed on all professional sports and most collegiate sports.
- Betting is not allowed on New Jersey collegiate teams or collegiate games happening in New Jersey.
- Betting is not allowed on high school sports.
- Sports betting revenue will be taxed at rates between 8.5 and 14.25 per cent depending on whether it’s live or online, and at a casino or a racetrack.
Phil Murphy took over from Chris Christie as the 56th Governor of New Jersey. He had been in office for just five months when he signed the state-wide law legalizing sports betting on June 18, 2018, barely a month after the Supreme Court decision.
Since then, casinos and racetracks operating in New Jersey have been able to offer sports betting to people in New Jersey legally, both at their land-based establishments and through online sportsbooks sites.
In order for a casino or racetrack in New Jersey to offer online sports betting to people in New Jersey, they need to have a physical sportsbook where people can bet on games in person.
Casinos without a physical sportsbook in their establishment won’t miss out on early action, however; they get a maximum of 270 days to operate an online betting site while they build their physical sportsbook.
As a bonus, casinos and racetracks can have up to three uniquely branded sportsbooks online. Most will start with one, but the triple-license option will leave space for casinos to expand in the burgeoning online market.
To give you the idea of the kind of money we’re talking about, $2.9 million in revenue was collected through DraftKings’ online sportsbook in August of 2018 alone, before the NFL season even got underway.
The current sports betting situation in New Jersey is outstanding if you love gambling on sports. There are tons of options for safe and secure places to make bets, both in land-based casinos and at online betting sites, and you can wager on almost any sport imaginable.
And since the sportsbooks are regulated and licensed by the state of New Jersey, a lot of people feel much safer and more confident signing up for accounts and making real money deposits and bets.
The History of Online Sports Betting in NJ
Regulated sports betting in New Jersey didn’t happen overnight. Here’s a blow-by-blow legal history of how we got here.
2011 Referendum on Sports Betting
New Jersey has always been more permissive towards gambling than most other states so it’s fitting that they’ve been on the forefront of legal state-wide sports betting since 2011. As successful as New Jersey has been in that department, they had to overcome a number of challenges to get there.
In 1961, the Federal Wire Act made inter-state sports betting illegal in the USA. The idea was to fight organized crime. However, the result was a multibillion-dollar grey-area industry that operated through offshore sportsbooks.
With time, opinions on gambling softened and New Jersey was the first state (after Nevada) to legalize casinos, restricting them to Atlantic City for tourism. Sports betting wasn’t really considered until New Jersey wanted to help boost casinos out of an economic downturn in 2010.
On November 8, 2011, 35 years after the state conducted a referendum on legal casino gambling in Atlantic City, New Jersey conducted another gambling-related referendum, this time on the legalization of sports betting in-state. The result was clear: New Jersey residents wanted the freedom to bet on their favorite games.
- 91% of voters were in favor of legalized sports betting.
- 09% of voters were against it.
Once the results were in, Senator Raymond Lesniak and Jeff Van Drew penned the Sports Wagering Act which was approved and signed by Gov. Chris Christie that following January. But the legislation was ultimately short-lived.
Professional and Amateur Sports Protection Act (PASPA):
In 2012, Governor Christie was sued by several professional and amateur sports leagues, who claimed the new law was in direct violation of the federal Professional and Amateur Sports Protection Act created in 1992.
- The Act aimed to protect the integrity of sports by making sports betting illegal in the USA, with the exception of Nevada sportsbooks, and sports lotteries that were already operating in three states.
- A clause was included to permit licensed casinos to pass laws for sports betting up to one year after the Act was put in place—something New Jersey failed to do.
The sports leagues suing Christie included the NBA, NHL, NFL, MLB and NCAA, all of whom won the case collectively in front of the District Court. But Christie wasn’t about to accept the ruling and back down; he filed an appeal in 2013 through the Third Circuit Court of Appeals. Unfortunately for Christie, the ruling came out the same.
2018 Supreme Court Decision
Five years later, the US Supreme Court accepted the case Christie vs. NCAA (later renamed Murphy vs. NCAA when Phil Murphy took over as governor) and on May 14, 2018, Justice Samuel Alito declared that the justices ruled in favor of New Jersey.
Justice Alito concluded that restricting sports betting was unconstitutional. The federal government could choose to regulate it, but if they didn’t, they couldn’t order states to ban it.
The Supreme Court voted 6-3 to eliminate the Professional and Amateur Sports Protection Act, giving states the power to regulate or ban sports betting as they see fit.
Following the ruling, Murphy signed the sports wagering bill and soon after, New Jersey casinos and racetracks began offering sports betting to patrons.
Like we mentioned before, one of the rules was that in order to run an online sportsbook, the business must have a brick-and-mortar casino or racetrack. These establishments were free to enter the online sports betting market, with up to three licenses available for three uniquely branded online sportsbooks.
At the start of the 2018-19 NFL season, there were over eight online sportsbooks up and running in the state of New Jersey—mainly through casino apps and web domains. More will be unrolled as the season progresses.
Which Online Sports Betting Sites Are Legal in the State?
In order for an online sportsbook to be legal in New Jersey, it must have a brick and mortar gambling establishment—be it casino or racetrack. A company cannot exclusively operate an online sports betting business in New Jersey. For that reason, all offshore sportsbooks remain illegal in New Jersey and can be detected by unconventional URL endings such as .eu.
When legalization kicked off, casinos rushed at the chance to get in the game early. Having prepared the infrastructure to accommodate legal sports betting long before it happened, Monmouth Park was the first place to offer sports betting in New Jersey, with Gov. Phil Murphy being the first person in line to place a wager.
The following 10 New Jersey sportsbooks are already taking bets 100% legally:
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