Online Sports Betting Kicks Off In New Jersey

This article originally appeared on Scarinci Hollenbeck’s blog

Online sports betting kicked off in New Jersey just in time for the new NFL season. Four online sportsbooks are currently operating in the state and that number could reach twenty by the end of 2018.

Online sports betting is poised to make up a significant portion of New Jersey’s now legal sports betting industry. According to a new report by consulting firm Eilers & Krejcik Gaming, New Jersey’s revenues from sports gambling will surpass Nevada’s as early as 2021.  The report projects that New Jersey’s gaming industry will reap $442 million that year, while Nevada will take in $410 million.

In support of New Jersey’s rapid success, the report cites the state’s highly-competitive online sports betting sector, which is predominated by cutting-edge product as well as competitive pricing and promotions; very high rates of black market recapture; and opportunities for cross-selling between online sports betting and online casino gaming.

New Jersey Online Sports Pools

In an impactful ruling, the Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA) last May. The federal law prohibited sports gambling in most states, including New Jersey. Governor Phil Murphy signed legal sports betting into law on June 11, 2018.   While online wagering technically became legal a month later, platforms have been slow to come online, largely due to the regulatory hurdles.

Under New Jersey’s sports wagering law, businesses cannot simply launch an online sportsbook. Rather, casinos and racetracks must obtain a sports wagering license and must have a brick-and-mortar “sports wagering lounge” within their facility to also be able to offer online betting. In addition, each sports wagering licensee may provide no more than three individually branded sports wagering websites.

The New Jersey Division of Gaming Enforcement must sign off on agreements between racetracks or casinos and Internet sports pool operators. Further, Internet sports pool operators must obtain a permit to conduct an online sports pool.

To date, four business partnerships have satisfied all of the requirements and can now accept sports wagers online. DraftKings Sportsbook is partnering with Atlantic City’s Resorts Casino & Hotel, FanDuel Sportsbook has partnered with the Meadowlands Racetrack, and William Hill has teamed up with Monmouth Park racetrack. Meanwhile, Borgota, which is owned by MGM Resorts International, launched its own playMGM app. Borgata was one of only two sportsbooks to take wagers on the first day of New Jersey sports betting. The Golden Nugget expanded its partnership with the PlaySugarHouse NJ online casino to include sports wagers.

For businesses looking to enter New Jersey’s legal sports betting industry, we encourage you to work with a knowledgeable New Jersey business and gaming attorney who can help you navigate the regulatory framework. As with any other new industry, there is a wealth of opportunity, as well as many traps for the unwary.

Ashley Brinn is a member of Scarinci Hollenbeck’s Environmental & Land Use and Corporate Transactions & Business Law practice groups. She also has extensive experience handling a wide range of matters related to Land Use, Regulatory Law, Corporate Law and Commercial Litigation. Prior to joining Scarinci Hollenbeck, Ms. Brinn was associated with the Atlantic City, NJ office of a prominent national law firm where she focused her practice on Corporate Law with a special emphasis on the gaming industry. She represented and advised large, multinational publicly-traded gaming corporations, gaming equipment companies, as well as regional entities and individuals in gaming licensing, regulatory, governance, and compliance matters in domestic and international jurisdictions. She can be reached at (732)-568-8364 or 

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Scarinci Hollenbeck

Scarinci Hollenbeck

With a growing practice of more than 70 experienced attorneys, Scarinci Hollenbeck is a regional alternative to a National 250 law firm. With offices in New Jersey, New York City, California and the District of Columbia, we serve the niche practice areas most often required by institutions, corporations, entities, and the people who own and control them. Since the firm was founded in 1988, we have maintained our reputation for getting things done. Most attorneys at Scarinci Hollenbeck have significant experience in their practice areas, and have published and lectured on current topics in their field.

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