POINT 4 OF 8: WHY DO WE ALLOW NEW JERSEY TO TAKE OUR REVENUE AND EDUCATIONAL FUNDING?
State Senator Joseph P. Addabbo, Jr., Chair of the Senate Committee on Racing, Gaming and Wagering; Assemblymember Gary Pretlow, Chair of the Assembly Committee of Racing and Wagering:
While New York is still debating on whether or not to legalize mobile sports betting, New Jersey is surging forward on that front and bringing in hundreds of millions of dollars in revenue for that state, with a large portion of that money coming from New Yorkers.
- New Yorkers wagered $837 million at New Jersey sportsbooks in 2019 — that is nearly 20% of the $4.6 billion that was bet on sporting events in New Jersey last year, according to a recent study by Eilers & Krejcik Gaming, an independent research and consulting firm. That equates to approximately $600 million in lost educational funds for our New York students.
- In January 2020, according to New Jersey’s Office of the Attorney General, its Sports Wagering Gross Revenue was $53.6 million for the month, reflecting a 185.2% increase for the same month last year. For January 2020, New York only did $1.9 million.
- At a 2019 hearing of the Senate Racing, Gaming and Wagering Committee, Kip Levin of Fan Duel and Lindsay Slader of Geo Comply, both stated that approximately 25% of New Jersey’s mobile sports bets come from New York residents.
- New Jersey’s total internet gaming numbers continue to grow, with Internet Gaming bringing in $55.1 million in January 2020, a 64% increase from the January 2019 number of $33.6 million, according to the New Jersey Division of Gaming Enforcement.
New York cannot continue to lose money to New Jersey, that could be allocated to our education system, problem gaming programs, and other important state-wide initiatives, simply because we do not want to take charge and legalize mobile sports betting in the budget.
Let’s correct this situation and keep our money in our state for our people.
This is the fourth release in an 8-part weekly series of points on why New York State should include mobile sports betting in the 2020-2021 Budget.