In January 2022, New York became the latest state to introduce its own sports betting legislation. It joins the majority of states that have embraced sports betting after the overturning of the Professional and Amateur Sports Protection Act (PASPA). For the last few years, New York and New Jersey have had an intertwined relationship when it comes to sports betting. That could be set to change.
In order to really understand what’s going on, let’s take a look at the sports betting laws in each state. Then we’ll see how the two have been related and try to figure out just what the impact of New York’s new legislation might be.
Sports betting in New Jersey
New Jersey has always been a gambling hub. Atlantic City was the original casino city in the United States and is still the main East coast destination for gamblers. Horse racing and other sports betting have also had a long history in the state.
New Jersey led the way in the fight to overturn PASPA in May of 2018. The legislation to legalize sports betting was already written and just waiting for the repeal to be put before the state legislature, which meant that New Jersey was able to act very quickly. In just one month, the legislation was passed, and the new era of legal sports betting had begun.
New Jersey’s sports betting laws initially allowed only in-person betting, but left the possibility of online betting open. Within two months, online betting had been licensed and sports fans were able to start placing their bets online.
New York’s new laws
With the passing of their new sports betting legislation, New York became the 18th state to allow online gambling. Sports betting at private and Native American-run casinos had already been legalized in 2019, so this was the logical next step.
The state hasn’t, however, completely thrown open the state to whichever sportsbooks want to pop up and start taking bets. The New York Gaming Commission has decided to allow four betting apps to provide betting services in the state. These four are: DraftKings Sportsbook, FanDuel, Caesars Sportsbook and BetRivers.
It’s no surprise that these four sportsbooks have been selected. They are some of the most trusted companies in the industry. DraftKings and FanDuel are the two biggest sportsbooks in America and Caesars is one of the most recognized names in the gambling industry.
A sports betting guide is still the best way to find out what the different sports betting regulations are across the United States. Check out the guide at World Sports Network for further information on the new laws in New York.
Are the two still intertwined?
As most people know, the two states are only divided by the thin line of the Hudson River. This means that it has always been easy for citizens of either state to jump to the other side to access services or avoid taxes or unpleasant legislation.
For the last few years, residents of New York have been able to make the quick trip to New Jersey to legally place their bets. Considering that the population of New York City alone is roughly the same as the population of the entire state of New Jersey, this greatly expanded the customer pool for New Jersey sportsbooks.
Now that New York has legalized sports betting, what is the impact that it is likely to have on the sports betting industry in New Jersey? It seems impossible that there won’t be a negative impact on the revenue that New Jersey generates from sports betting. So far though, it is too early to tell. In February, there was a drop in revenue, however, that was true across the United States, as most major sports were either over for the season or taking breaks, including the NHL All-Star game break.
One thing that may protect New Jersey’s portion of the New York gambling market is the tax rate that New York has set. The taxes that New York has placed on online betting are much higher than the taxes in other states. This could definitely deter some players from betting in The Big Apple.
We will need to wait and see if the new legislation leaves New York and New Jersey intertwined in regards to sports betting or if it severs them and allows each state to develop its own sports betting culture. This time next year we should have a better idea of how this will play out.