Less than five months after New Jersey won the Supreme Court battle that allowed its casinos to offer sports betting, taxes are going up. According to the Press of Atlantic City, Governor Phil Murphy signed off on a 1.25 percent sports betting tax increase last week to benefit the state’s ailing Casino Reinvestment Development Agency. That brings the tax on net sports betting revenue to 9.75 percent at brick-and-mortar sports books and 13 percent on mobile and online sports betting.
For comparison, Nevada taxes its sports betting revenue at 6.75 percent, West Virginia at 10 percent and Mississippi at 12 percent. Sportsbooks haven’t opened in Pennsylvania yet, but the rate there will be 36 percent, while Delaware and Rhode Island (which expects to open for sports betting next month) effectively pay more a more than 50 percent tax rate under partnership programs with their state governments.
The CRDA will earmark the funds for “marketing and promotion.” According to the Press of Atlantic City, the additional tax from casino sportsbooks will be used to market Atlantic City specifically while the additional tax revenue generated from Monmouth Park and the Meadowlands Racetrack will be funneled directly to the towns in which the tracks are located.
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Saturday will mark one month since New Jersey sports betting began in the Garden State, and the state has plenty of reason to celebrate the past month and look forward to the months and years ahead.
Governor Phil Murphy placed the state’s first official bet at Monmouth ParkSportsbook on June 14 as cameras clicked and a big crowd watched. Ninety minutes south, NBA legend Dr. J placed the first sports bet at the Borgata Race & Sportsbook in Atlantic City. Both venues claimed a first – Monmouth Park was the first New Jersey racetrack to accept a sports bet and the Borgata was the first New Jersey casino to do the same.
In the first month, there have been some key changes at Monmouth Park to accommodate the flow of sports bettors. The William Hill-run sportsbook had six teller windows at launch, which didn’t turn out to be enough: 15 additional windows have been added, in addition to 50 high-definition televisions, food carts, chairs and tables, in the grandstand area at the racetrack. To Accommodate NJ Sports Betting Interest At Monmouth Park, The Facility Has Transformed the Grandstand
“That was a dead grandstand area,” said Tom Luicci, media manager for Monmouth Park. “If you’re facing the track, it’s on the far left side and now all of a sudden it’s probably the most vibrant area on the track. … It’s like a whole community that just sprung up out of a desert area.”
Luicci also said that the track has accommodated sports fans by opening its gates early — 8 a.m. vs. the traditional 11-11:30 a.m. opening times for horse racing — during the World Cup, so fans could place bets and watch games.
Similar scenes have likely been playing out at other venues. And there’s plenty of glory and goodwill – and money, it turns out, to be shared around the state.
“The initial sports wagering results illustrates the popularity among patrons and the potential of this new revenue stream for New Jersey operators,” said DGE Deputy Chief of financial investigations Christopher Glaum. “The Division anticipates continued revenue growth in future months as each of the state’s remaining 11 eligible sports wagering operators determines when and how they will seek to enter the marketplace.”
Maybe 14 Is New Jersey’s Lucky Number: PASPA Overturned May 14, NJ Sports Betting Opened June 14, and Meadowlands Will Take First Bets July on 14.
After nearly a decade of legal wrangling, New Jersey finally won the right for it – and every other state in the nation – to offer sports betting when the Supreme Court issued its decision on May 14, striking down the Professional and Amateur Sports Protection Act in its Murphy v. NCAA decision.
Governor Phil Murphy placing the first legal sports wager in New Jersey at Monmouth Park.
The 14th has become an auspicious date for New Jersey since. It was on June 14 that Monmouth Park and the Borgata took those first sports bets, and it will be on July 14 that the Meadowlands, just over the border from New York City, will open for sports betting.
If the initial numbers are any indication, the Meadowlands should be in for some good business. The New Jersey Division of Gaming Enforcement released numbers from the first 17 days of sports betting at three locations (though the Ocean Resort didn’t open until June 28, so most of the money in the report flowed through Monmouth and the Borgata), they revealed a healthy interest in sports betting.
As in Delaware sports betting, New Jersey is using a cash method of accounting, not the accrual method used in Nevada. With that understanding, the sportsbooks generated in a collective $3,458,688 gross revenue, producing $293,863 in tax revenue for the state of New Jersey. That’s based on a total handle of $16.4 million from June 14-30.
The nearly $300,000 for New Jersey’s coffers is based on an 8.5 percent tax rate on operators’ sports wagering revenue. Considering that the state set the tax for mobile sports betting at 13 percent, it stands to bring in even more once mobile wagering is online, and certainly once more properties begin operations in the coming months. Those expected to do so include the Hard Rock Hotel & Casino Atlantic City and the Golden Nugget.
Several properties are planning to debut mobile platforms later this summer and bettors in the state of New Jersey will be able to sign up for an account remotely.
Current New Jersey Sportsbooks are Bare Bones, But Operators Have Plans for More Posh Surroundings, Hopefully in Time for Football Season.
As sports betting grows in New Jersey, so, too, will its sportsbooks. Monmouth Park, the Borgata and Ocean Resort all opened with what they called “temporary” sportsbooks.
Essentially, there’s betting windows, odds boards and a few televisions in Spartan surroundings. The idea was to get up and running as soon as possible, and based on the numbers, all of the sportsbooks bet right – bettors were more interested in being able to place bets than needing the creature comforts of a Las Vegas-style sportsbook. But during the first month, and beyond, all three properties have continued work on more elaborate sportsbooks, and hope to have those open by the start of football season.
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The post Three New Jersey Sportsbooks Collects $3.4M in First Half-Month appeared first on SportsHandle. New Jersey sports betting went live on June 14 at Monmouth Park in Oceanport and at the MGM-owned Borgata Resort Casino in Atlantic City, and the first month of operations has shown that the state’s costly fight for legal sports betting will be well worth with it.
The New Jersey Division of Gaming Enforcement on Thursday released the first batch of sports betting revenue figures, which are based on a cash method of accounting, not on an accrual method as in Nevada, showing the three separate locations operating in June took in a collective $3,458,688, producing $293,863 in tax revenue for the state of New Jersey. That’s based on a total handle of $16.4 million across the same properties.
Those figures come with an 8.5 percent tax rate. Mobile sports wagering tax rate is 13 percent, which is likely to begin at a few properties set to roll out their apps/online platforms in the coming weeks. Anyone in state can set up an account remotely and deposit without having to register in person at a licensee. New Jersey Sports Betting Numbers and Handle From First Weeks of Live Operations Show Big Win.
Keep in mind the $3.4 million is based on a cash method of accounting, which counts as revenue wagers on futures events such as the World Cup and Super Bowl winner.
According to the DGE, “$1.2 million in gross revenue was reported from Completed Events, which approximates accrual basis revenue that can be compared to the win reported of Nevada casinos.” The total handle across the three locations was $16.4 million.
Here’s more of the breakdown:
Also keep in mind that Ocean Resort, a property formerly known as Revel, only opened on June 28, meaning it produced its handle and hold in three days.
People had a nice time betting on baseball! It represents $10.1 million of the $16.4 million in handle:
Further consider that mobile wagering has not yet begun, which will be coming soon through William Hill and the Borgata. Sources say that the MGM-owned Borgata’s mobile app will be introduced next week.
These numbers are pretty, pretty good, considering only baseball and soccer events (with some other events such as UFC 226) were occurring during this half-month stretch.
Welcome to the game, New Jersey, and Garden State sports bettors. This is story is developing and will be updated.
[Also See: What to Expect at the Meadowlands’ FanDuel Sportsbook Launch]
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The post Sports Betting Regulators, Officials Urge Patience– to Avoid Fumbling appeared first on SportsHandle.
Don’t rush! If there is one thing that regulators in states that have legal sports betting want to share, that’s it.
“I wouldn’t rush into this,” Delaware Lottery director Vernon Kirk said. “The world is still going to be there tomorrow. If you get started a little late, be thorough, talk to people who have experience with this and just be careful in your legislation and execution.”
On June 5, Delaware became the first state since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) to offer legal sports betting. Delaware had company upon the debut of New Jersey sports betting on June 14, while Mississippi, Pennsylvania and West Virginia are currently developing regulations, accepting applications and preparing with licensees to begin accepting wagers in the next few months. DE, PA and NJ Sports Betting Officials Agree: Rolling out Sports Betting Regulations Requires Patience, and States Want to Get It Right the First Time.
Delaware was particularly quick in debuting full-fledged wagering at its licensed properties, but the same facilities already were experienced in offering NFL parlay wagering in years passed, plus it had many of its rules, regulations and technology in place after attempting to offer full-fledged sports betting in 2009. One month in, things are going smoothly.
Other states may not have the luxury of past experience, or the ability to be as nimble as Delaware, the second smallest state by population in the nation.
Rhode Island Gov. Gina Raimondo (L) with R.I. House Speaker Nicholas Mattiello.
But every state regulating body is likely feeling at least a little bit of pressure. Some lawmakers across the country have been touting sports betting as a windfall for their state budgets. In fact, Rhode Island governor Gina Raimondo earmarked $23.5 million in sports betting revenue in her latest budget. Rhode Island made sports betting legal in late June.
To help get there, the state is taking 51 percent of all sports wagering revenue — by far the largest cut in the country. The state will still need to generate an awful lot of wagering and will not be allowing mobile betting off premises, either.
New Jersey will celebrate its first month anniversary of legal sports betting on July 14, which coincides with the first day that The Meadowlands will accept sports wagers. Currently, licensed sportsbooks are operating in three locations in New Jersey.
The Garden State was the driver of Murphy v NCAA, the case that escalated to the Supreme Court and resulted in the high court ruling PASPA unconstitutional. Monmouth Park, a key driver in the lawsuit, was the first to open for business.
“We are pleased with the rollout of sports wagering in New Jersey,” said David L. Rebuck, director of the New Jersey Division of Gaming Enforcement. “While actual wagering only started in June, the Division was preparing for this possibility well in advance. My advice for other jurisdictions would be to have good communication with the industry and look to strong regulatory models such as New Jersey as you move forward.”
‘Don’t Let Your Legislators Go Crazy and Make Ridiculous Projections,’ Warned Delaware Lottery Directory Vernon Kirk.
In Pennsylvania, which passed its enabling legislation in 2017, the state gaming commission is in the process of rolling out regulations to get started. And just as in any other state, regulators know the whole endeavor is driven by money.
“We understand that the expansion of gambling in Pennsylvania is being undertaken to raise more money for the commonwealth,” said Doug Harbach, Director of Communications for the Pennsylvania Gaming Control Board. “We’re trying to get a potentially lucrative market up and running as soon as possible, but we want to make sure it has all of the necessary regulations to protect the public.”
Harbach’s sentiment was also echoed by Kirk in Delaware and down south, by Allen Godfrey, executive director of the Mississippi Gaming Commission.
“The one thing I would say is to tamp down expectations,” Kirk said. “We’re doing really well, but don’t let your legislators go crazy and make ridiculous projections and saddle you with unrealistic expectations.”
Said Godfrey: “The numbers out there are so out of whack, I wouldn’t want to quote them,” Godfrey said of lawmakers’ pie-in-the-sky expectations. “Anything we get will be more than we’re getting now.”
Mississippi, Pennsylvania and West Virginia Are Aiming to Take First Legal Sports Bets During or Even Before, Football Season.
In Mississippi, sports betting regulations will go into effect on July 21. The state’s gaming commission has already received at least a handful of applications from potential operators and it appears that every commercial casino in the state will offer sports betting. The gaming commission, which has been overseeing the state’s 28 casinos for more than 25 years, moved swiftly to put out its regulations.
In West Virginia, the goal, according to West Virginia Lottery general counsel Danielle Boyd, is for the Mountaineer State to accept its first sports bet by football season, but no later than Sept. 1. West Virginia has five casinos. The state will roll out regulations under “emergency status.”
The West Virginia Lottery Building.
“It’s a different animal than anything that we’ve dealt with before and so knowing that, we’ve tried to surround ourselves with the best and the brightest consultants,” Boyd told Sports Handle in June. “One of the challenges has been making sure that we have the legislative rules we need, but avoiding ones we don’t. So we’ll need some flexibility.”
“We do have ’emergency status’ until early December as far as these legislative rules are concerned. So we can change them, we can add to them if we need to until December, but after that point, they would have to go through the legislative rule making process.”
Back in Pennsylvania, Harbach says the goal is slow and steady.
Focus of PA Sports Betting Regulations Is to Protect the Public.
“We know our chief role is to protect the public,” he said. “So we’re going to make sure we have it right. We’re not rushing anything.”
Pennsylvania lawmakers made sports betting legal in 2017 pending the status of PASPA. Since the Supreme Court decision came down, state regulators have rolled out draft regulations for sports betting and opened them to public comment. Those comments — from the professional sports leagues, Penn State University, Pitt and potential gaming operators — are under review. But the comment period is an example of why regulators can’t rush — it takes time to hear from stakeholders and then open conversations based on concerns.
Harbach thinks his group, similar to Delaware, has a bit of a leg up on other states. In the recent past, the gaming commission has had to develop regulations for fantasy sports and iGaming, among other issues, making sports betting legal a sixth new set of regulations to develop, he said.
Whether it’s sports betting or iGaming, Pennsylvania regulators would rather get it right the first time.
“The potential for revenue will be there when we are ready,” Harbach said. “We’re not feeling the pressure from the legislators. They understand that we need to get it right. There are some who see it as being beneficial as being ready before the football season, but we are not [aiming] for a particular sports season.”
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The Supreme Court’s decision to allow states to handle sports betting opened the floodgates for established companies to expand their reach in the American market. One of the first is William Hill, a long running book based out of the UK. The company brings in over 2 billion in annual revenue and that number will only increase with American books outside of the 107 the company already runs in Nevada. You can read the whole press release below:
OCEANPORT, N.J. – Thursday, June 14, 2018 — William Hill, America’s leading sports book operator, today accepted New Jersey’s first legal sports wagers, officially opening its sports book at Monmouth Park Racetrack.
The historic moment was marked by the placing of the ceremonial first bets by Governor Phil Murphy. Governor Murphy’s historic wagers were a $20 futures bet, placed at 7/2 odds, on Germany to win the 2018 World Cup and a $20 futures bet, placed at 40/1 odds, on the New Jersey Devils to win the 2018-19 Stanley Cup. Governor Murphy was joined onsite by State Assembly Speaker Craig Coughlin, former State Senator Raymond Lesniak, Dennis Drazin, Chairman and CEO of Darby Development, operator of Monmouth Park, and William Hill US CEO Joe Asher.
“We are excited to open for business at Monmouth Park,” said Joe Asher, CEO of William Hill US, America’s largest sports book operator. “Obviously, it’s a big day for us. A lot of people have worked really hard for a long time to make today possible and I am grateful for their efforts.”
45 minutes into legal sports betting in New Jersey, the sports bar at Monmouth Park is packed. Executives here hope that this racetrack alone at maturity can bring in $1 billion in bets annually. pic.twitter.com/ZHWOE43bhj
Now open, the Monmouth Park Sports Book by William Hill offers a diverse sports betting menu that includes football, basketball, baseball, hockey, soccer, tennis, and more. The complex features a 15-window main sports book, and an integrated sports bar, with over 40 HDTVs showing live sporting events and dynamic betting lines. The sports book is open seven days a week.
Customers visiting the Monmouth Park Sports Book by William Hill have 29 different ways to bet the 2018 World Cup opening game between Russia and Saudi Arabia (kickoff at 11AM ET) – the earliest sporting event available on today’s menu.
