Sports betting pros and cons — NJ aims to strike a balance

⚫ Sports betting is a job creator and a moneymaker

⚫ Experts say it is contributing to an increase in problem gambling

⚫ DraftKings says there are protections in place

Sports betting has delivered a significant economic boost to the Garden State since launching more than six years ago.

But industry observers and officials want to make sure the betting option — which is available in person and at the fingertips of anyone with a phone — isn't doing more harm than good.

"While it is beneficial for the casino industry and it generates related tax revenue, it is contributing to an increase in problem gambling," said Felicia Grondin, executive director of the Council on Compulsive Gambling of New Jersey.

Calls to the Council's helpline have increased by 277% since June 2018, when sports wagering became legal in New Jersey, Grondin said.

SEE ALSO: NJ misses list of the best states to find a job

Grondin made her comments in front of a joint hearing of the New Jersey Legislature's Assembly and Senate gaming committees.

"The more revenue generated from online and sports wagering, the more calls we receive, which translates into more and more people needing help," Grondin said.

Sports betting revenue in NJ

Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism at Stockton University, told the joint panel that sports betting has contributed more than $400 million in tax revenue to the Garden State since its inception.

Since launching, sports betting has taken in more than $45 billion in bets, which resulted in more than $3 billion in gross gaming revenue, she said.

"In 2023 alone, it generated more than $1 billion in gross gaming revenue," Bokunewicz said. "This represented a 31.9% increase over the prior year."

The surge continues in 2024. Year to date, revenues are up by nearly 18%, she said.

Along with dollars, experts believe sports betting has led to the creation of thousands of jobs, both direct and indirect.

Gambling addiction concerns

More than 90% of sports betting occurs online, as opposed to inside a casino or at a racetrack.

Lia Nower, director of the Center for Gambling Studies at Rutgers University, said each year in New Jersey, the proportion of bettors aged 21 to 24 increases in the Garden State.

"Overall, about 85% of sports bets lose," Nower said. "People placing bets, particularly young people, don't have any understanding of the kinds of odds."

More than two-thirds of gamblers, she added, bet on games while they're still happening.

"The danger of in-game betting is, it's in the moment, the odds are changing, it's impulsive, it can be affected by alcohol or peer pressure," Nower said. "So you are much more likely to spend more than you can afford."

SEE ALSO: The 10 best hospitals in New Jersey

Gambling disorder is referred to as a hidden addiction, since there are rarely any physical signs. But the ripple effect can still destroy lives.

According to advocates, a major hurdle is getting habitual gamblers to admit that they have a problem.

Lori Kalani, chief responsible gaming officer for the betting platform DraftKings, told lawmakers that there are protections in place, aimed at keeping gamblers from losing control or betting beyond their means.

Players are informed of "rules, risks, and odds" when they sign up, and younger players are reminded more frequently, she said.

"When we see irregular behaviors that suggest a player may be at risk, we take action," Kalani said.

Report a correction 👈 | 👉 Contact our newsroom