New Jersey

The Garden State was no stranger to gambling prior to PASPA being overturned. After this change, NJ did not take long to build an impressive online and retail betting market, giving residents tons of well-known sportsbooks to choose from.

Residents of New Jersey who are of legal betting age have free reign to wager on professional sports. Betting on collegiate sports is also a legal option in NJ; however, residents cannot wager on in-state colleges or any college games that may be taking place in the state. Soon, there could be even more restrictions on betting on college sports, as the state is looking into legislation that would ban all wagering on collegiate player props.

Wagering on eSports can also be done within NJ, and residents can also use daily fantasy sports apps to participate in contests related to eSports or pro/collegiate sports. All DFS products have been legal in NJ since 2017, so much like online sportsbooks, there are plenty of options to choose from.

Horse racing is also a big facet in the Garden State, so betting on it is 100% legal. Outside of sporting events, the ability to bet on entertainment events is legal, but betting on politics is not.

Online sports betting in The Garden State

Sports betting had the attention of voters in New Jersey back in 2011. After a voter referendum that year, a sports betting law in NJ was passed in 2012, but unfortunately, that didn’t mean residents had free reign to start firing off wagers on pro sports. Instead, the subject of sports betting was at the forefront of lawsuits and appeals for the next five years until the Supreme Court decided to overturn PASPA in 2018.

Now that no one could legally challenge New Jersey’s sports betting law, Governor Phil Murphy signed an updated sports betting law later in 2018. The New Jersey Division of Gaming Enforcement was then appointed to approve and hand out licenses.

When PASPA was overturned in 2018, New Jersey was able to launch retail betting in June of that year and mobile betting in August. Since the state already had a strong base of casinos and racetracks, it was easier for NJ to roll out mobile betting, as the law allowed those casinos and racetracks to partner with up to three online operators.

DraftKings was the first mobile sportsbook to enter NJ, but since then, plenty of big-name operators have followed, including BetMGM, BetRivers, Bet365, FanDuel, Fanatics, Unibet, and more.

The best way to describe the online sports betting scene in New Jersey is vast. As of 2024, there are 17 mobile sportsbooks available for residents to download or access through their web platform. That is not the end of the market, either, as two more sportsbooks are expected to launch within the year, and three exchange-based sports betting apps.

It is not surprising that so many mobile operators wanted to get in on the action in New Jersey, as the state has become one of the biggest sports betting states in the U.S.

All legal NJ sports betting apps in 2024 (from newest to oldest):

In addition, bettors can access a few other not-so-traditional wagering platforms in NJ, such as Mojo, Prophet, and Sporttrade, which are all available here. However, these platforms are sports betting exchanges, which allow their customers to trade sports bets in a stock-like fashion.

Sports betting & gambling legislation in NJ

While all the casinos in New Jersey are located in one area, residents do not need to be present in those casinos to create a mobile betting account. Remote registration is available to bettors, so as long as they are at least 21 years old, they can create an account on as many NJ sports betting apps as they may please.

Bettors do not need to be residents of NJ to place a legal sports wager in the state; they just need to be located inside state lines. The New Jersey Division of Gaming Enforcement enforces all rules and regulations regarding sports betting in the Garden State.

Aside from the gambling age, one of the most important things that bettors need to be aware of before placing a bet is the tax rate. In New Jersey, gambling winnings are considered taxable income and have a tax rate of 3%.

Since iGaming, horserace betting, and sports betting are all legal in NJ, there are not many more gambling-related topics for the state to discuss during upcoming legislative sessions. Updates to the law can always come about as the market shifts over time, but for right now, residents can expect the sports betting scene to remain the same.

Most recent updates from the NJ sports betting scene

• May 8, 2024: Fanatics Sportsbook and iCasino are officially live in New Jersey, as they have taken over operations in place of the PointsBet Sportsbook.

• May 7, 2024: The NHL Draft Lottery takes place tonight, and the New Jersey Devils have a 3.5% chance of receiving the first pick.

• April 30, 2024: New Jersey Devils defenseman Luke Hughes has been named a finalist for the 2024 Calder Memorial Trophy, which goes to the league's top rookie.

• December 18, 2023: In November 2023, New Jersey's gambling revenue reached $482.4 million, up 9.4% compared to the previous year. However, it slightly decreased from October 2023 by $4.7 million. Sports wagering gross revenue for November was $95.9 million, a 19.2% increase from November 2022.

• December 11, 2023: BetMGM plans to enhance its online poker platforms by introducing shared liquidity between New Jersey and Michigan. With this move, BetMGM could become the third multi-state online poker platform in the United States, joining the ranks of PokerStars and WSOP.com.

• September 21, 2023: The New Jersey Division of Gaming Enforcement has fined PointsBet $25,000 for permitting unauthorized wagers on esports and college sports. PointsBet was also penalized for allowing bets on a football game when the outcome was already known.

• September 18, 2023: In August, DraftKings and Resorts World become leaders in New Jersey's sports betting market, overtaking Meadowlands and its associates FanDuel, PointsBet, and SuperBook, marking their first lead since January 2019.

In-person sports betting sites and locations

Atlantic City, aka Monopoly City, is home to all nine casinos in the state, and each offers retail sports betting. According to the state’s sports betting law, each casino is allowed to partner with up to three online operators, yet most of them have just one partner.

Some of the online operators that partner with these casinos include BetMGM, Bally Bet, Caesars, DraftKings, and more. Race tracks are also present throughout the state, and they have the ability to partner with three online skins as well.

Sports betting in neighboring states

New Jersey is part of a strong group of northeastern states that have legalized sports betting. The only state that has outdone NJ in terms of overall sports betting handle is New York, while Pennsylvania and Delaware certainly have strong betting markets as well.

By clicking on a state in the box below, New Jersey residents who need to cross state lines can find out what type of sports betting market they are walking into.

Sports betting revenue impact on New Jersey's economy

The licensing process in New Jersey varies depending on whether or not it is a retail or online license. Retail licenses for casinos and racetracks have a fee of $100,000, while online operators have to pay a $400,000 license fee on top of a $250,000 responsible gambling fee.

Tax rates also vary depending on whether we are talking about retail or mobile. The retail tax rate is 8.5%, while the online tax rate is 13%. One stipulation is that racetracks have a tax rate of 14.25% for online wagers.

Between Atlantic City and the wide range of mobile apps the state offers, New Jersey is among the highest-earning states for sports betting handle and revenue. After posting $1.6 billion in handle in November 2023, not only did the Garden State make it onto the list of top ten handles in a month since legalized sports betting, but they also raised their yearly handle to $10.69 billion, which was the second highest in the U.S. in 2023.

Top 3 sportsbooks in the state in March 2024:

1. FanDuel: Revenue: $29.5m

2. PointsBet: Revenue: $20.1m

3. DraftKings: Revenue: $17.6m

New Jersey sports betting record months:

• Sports betting handle: January 2024 ($1,719,170,088)

• Revenue: January 2024 ($170,758,334)

• Tax income: January 2024 ($24,346,734)

NJ sports betting revenue in 2024