The state’s robust regulatory structure, gaming expertise, and access to tech-savvy talent have propelled its dominance. According to BetMGM’s Chief Human Resources Officer Karen Baumwoll,
“This is a new industry…finding talent in your jurisdiction is challenging. We have it here.”
In November 2024, the state’s online gambling revenue hit $214 million, marking a third consecutive month exceeding the $200 million milestone. This surge has underscored New Jersey’s innovative edge, especially as mobile betting apps in NJ continue to drive growth.
Industry officials estimate that over 95% of wagers are placed via smartphones, further solidifying the state’s status as a hub for digital gambling.
The Meadowlands Racetrack, aligned with major players like FanDuel and PointsBet, led sports betting revenue with $50.5 million in November, while Resorts Digital doubled its performance year-over-year, contributing $38 million.
With a year-to-date sports betting handle surpassing $10 billion for the third consecutive year, New Jersey also regained its crown as the nation’s leader in monthly betting records.
Addressing Challenges in a Growing Market
While the growth of NJ sports betting has created economic opportunities, challenges persist. Problem gambling is an increasing concern, particularly among young men. A Fairleigh Dickinson University poll found that 10% of men aged 18 to 30 reported gambling issues, compared to just 3% of the overall adult population.
The Rutgers Center for Gambling Studies revealed an even starker reality, estimating high-risk gambling rates in New Jersey at 6%, three times the national average.
To combat these issues, New Jersey’s Division of Gaming Enforcement has introduced a 24/7 online application portal for self-exclusion from gambling. Mary Jo Flaherty, the division’s interim director, emphasized the importance of accessibility, stating,
“Making the self-exclusion process more accessible is a critical step in our ongoing commitment to responsible gaming.”
However, the industry’s rapid growth has not been without regulatory hiccups. DraftKings and Rush Street Interactive were recently fined for taking bets on unauthorized events and games with known outcomes. Kambi, a sports betting technology company, attributed many of these incidents to network connectivity errors or human mistakes.
While fines and corrective measures have been implemented, these lapses highlight the need for robust systems to ensure compliance in an increasingly complex market.
Setting the Standard Nationwide
New Jersey’s sports betting model has become the gold standard for other states.
“Whenever there is any type of proposed regulation…people will ask us, ‘What’s New Jersey doing?’”
said Sarah Filosa of the Sports Betting Alliance. With a cumulative handle exceeding $44.4 billion, the state continues to set benchmarks for legislation and innovation.
Governor Phil Murphy lauded the industry’s organic growth, calling it
“an economic juggernaut”
that has brought jobs and tax revenue to the state. But as New Jersey continues to lead, its commitment to responsible gaming and regulatory oversight will remain vital to sustaining its position as the national reference point in sports betting.