High flying New Jersey’s claim to being the new sports betting capital of the USA, strengthen again in August.
The affirmation that it continues to lead the US sports betting race became official Friday. Two weeks after New Jersey had done so Nevada released its August gaming figures.
They showed that for the third time in the past four months the Garden State’s sports betting handle again surpassed Nevada’s. This time Nevada took in bets for the month that totaled $287.8 million as against New Jersey’s $293.6m.
And yes, this despite the fact that Nevada’s August 2019 sports betting handle was 22.1% up on its 2018 total.
Nevada was never subject to Federal law (PASPA) that for decades had forbidden sports betting in most US States. During this time with Las Vegas as its central core, it had developed into the gaming hub of the USA.
New Jersey, meanwhile, was one of the prohibited states and it took exception to PASPA. Some five years ago it launched a successful court battle to have the law struck down. Their fight ended in May last year when the Supreme Court ruled that PASPA was unconstitutional.
States can now decide for themselves on sports betting
It was up to individual states themselves to decide whether or not they wished to legalize sports betting, the court ruled. And NJ hit the ground running.
The court’s five-strong panel of judges handed down its verdict on May 14, 2018. Not much more than a month later New Jersey governor Phil Murphy made the state’s first wager. He did so at the William Hill sportsbook at Monmouth Park Race Track.
Along with William Hill, the New Jersey sportsbook industry started life with DraftKings, SugarHouse, Play MGM, FanDuel and 888sports.
Fourteen months later it had grown to 15 online and nearly as many land-based sportsbooks. Equally important to New Jersey, the industry had attracted around $3.5 billion in sports-bets during this time.
The Garden State has yet to match or exceed any of Nevada’s year-on-year totals in sports betting handle. However, if it continues topping Nevada in the monthly battle it won’t be too long before it does.
In fact, some of Nevada’s own sports betting figures believe it is inevitable. They base this on the differing sizes of the two state’s populations.
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Nevada has only 3.5m people to New Jersey’s 8.9m
In 2018 Nevada had a population of 3.5 million residents, New Jersey of 8,909m. The Federal Wire Act forbids sports betting outside state lines. This means that it is illegal for sportsbooks to take bets from punters outside their state. In other words, generally, the size of a state sportsbook industry should only be as big as the population it services.
This is not quite true, of course, of either Nevada or New Jersey.
Nevada has the Las Vegas strip and that’s a worldwide holiday destination. During the football season, especially, it gets get large numbers of punters visiting from big, non-betting states like California and Texas.
However, as we have seen, the tide is turning New Jersey’s way. Even the glitz of Las Vegas is unlikely to stop it. Nor should the different registration procedures of the two states.
New Jersey punters can register online with a minimum of fuss. Nevada residents, on the other hand, have to report in-person to a Casino to do it.
If New Jersey also is currently not one of your run of the mill US sports betting states it’s for a different reason. Despite the Wire Act, it actually is currently serving a population much larger than its own.
Neighboring New York State has some sports betting Casinos, but they are far-flung from the Big Apple. Also, they do not offer online betting.
New York Governor in squabble over online betting
While its Governor and his legislators squabble over the legitimacy of online wagering, thousands of New York’s 12 million are betting in NJ. For many, making a legal wager takes no more than a short journey over the Hudson River.
There is no doubt that New York State with its 19.54 million will eventually get online sports betting to go with its Casino betting. Therefore, in turn, it has the potential to oust New Jersey as sports-betting’s US top-dog.
By then so could California, Texas and Florida with their respective populations of 39.9, 28.7 and 21.3 million.
But in truth, anything can happen. The Wire Act could next be scrapped. Then, New Jersey, with its many world-class sportsbook, will be ready and willing to serve the entire US nation.
Meanwhile, here is a table showing how New Jersey and Nevada have compared during the past four months.
Betting Handle comparison
May 2019: New Jersey $318,9m, Nevada $317.4 – Difference +$2m
June 2029: New Jersey $273, Nevada $322 – Difference – $49
July 2019: New Jersey 251, Nevada $236 – Difference +$36m
August 2019: $293m, Nevada $287m – Difference +6m.
