New Jersey sports betting to top Nevada’s, governor says
Gov. Phil Murphy hopes New Jersey sports betting could overshadow Nevada’s as early as next year.
US.- New Jersey was the main state where the battle against PASPA was fought and ultimately won. That’s why it was the first to launch the segment and began thriving in it.
According to Governor Phil Murphy, New Jersey sports betting could even surpass Nevada next year. It would become the top market in the US and he is confident that it will continue to succeed.
“Nevada is clearly in our sights,” Democrat Phil Murphy said, speaking at the Betting on Sports America conference. “We can overtake it as early as next year.”
Ever since New Jersey legalised sports betting, punters have bet over US$2.3 billion. Should they keep the pace, the state would compete with Nevada’s US$5 billion, raked from bets last year.
According to gambling analyst Chris Grove of Eilers & Krejcik Gaming, the Governor’s forecast is possible.
“New Jersey’s population advantage, drive-in traffic from New York, and superior mobile sports betting product are the primary forces driving New Jersey ahead of Nevada,” he said. “It’s not a guarantee, but it’s certainly plausible.”
PASPA’s revocation
The US Supreme Court finally ruled that states are free to legalise sports betting back in May 2018. It said that the federal law that was in place was unconstitutionally forcing states to maintain their prohibitions. The gambling and sports industry now have the green light to set regulations to find common ground on what is set to become a billionaire industry.
The high court ruled that Congress overstepped its authority in 1992 by prohibiting states that didn’t already allow sports betting from entering the business. The vote ended 7-2 in favour of overruling PASPA, the sports protection act that was passed 26 years ago.
PASPA prevented states from offering gambling lines on sports. Nevada, Oregon, Delaware, and Montana were granted special exemptions, as all four of those states were offering some variation of sports lotteries back in 1992. In a battle that made New Jersey spend more than US$8 million in legal fees, the state challenged the federal ban until it reached the Supreme Court.
Justice Samuel Alito wrote for the majority in a 31-page opinion: “Just as Congress lacks the power to order a state legislature not to enact a law authorizing sports gambling, it may not order a state legislature to refrain from enacting a law licensing sports gambling.”
While New Jersey is expected to be the first state to be offering sports betting in casinos and racetracks, states like Pennsylvania, New York, Mississippi, Delaware and West Virginia are expected to follow soon, with more states by the end of the year. Americans illegally bet at least US$150 billion annually on sports empowered by PASPA.
After the emerging news, shares of casino operators and their suppliers increased significantly, with Caesars and MGM Resorts experiencing rises of 9 and 3.5% respectively. Some of the biggest share hikes were seen among non-US betting parlors and online operators, with UK William Hill Canadian Stars Group leading the list with double-digit increases.
Chris Christie, former governor of New Jersey, who commanded the legal case against the ban, said: “[This is] a great day for the rights of states and their people to make their own decisions. New Jersey citizens wanted sports gambling and the Federal Government had no right to tell them no. The Supreme Court agrees with us today. I am proud to have fought for the rights of the people of New Jersey.”
