TRENTON, N.J. — Online sports betting is bringing new revenue to New Jersey, but it’s also hurting gambling addiction and the finances of Atlantic City casinos that rely on in-person gamblers, sportsbooks and problem gambling treatment workers. also raised concerns about potential harm, he testified Thursday.
State legislatures, with New Jersey leading the nation, have held hearings to examine the impact of online sports betting. A court challenge to bans on sports betting in all but four states resulted in a 2018 U.S. Supreme Court decision allowing sports betting to take place in any state. Currently 38 people are doing so.
Testimony alternated between praise for the industry’s economic benefits and concerns about its harmful potential.
“Just by picking up your cell phone, you can lose tens of thousands of dollars within minutes,” said Felicia Grondin, executive director of the New Jersey Compulsive Gambling Council.
More than 90% of sports betting in New Jersey takes place online.
However, Sports Betting Alliance President Jeremy Kudon emphasized that online sports betting has brought additional money and jobs to the state. The group is comprised of sports betting companies FanDuel, DraftKings, BetMGM and Fanatics, which together account for 89% of New Jersey’s sports betting market.
“This is a tremendous economic success story,” he said. “Our industry employs more than 4,000 people in North Jersey alone, creating an economic boom for our state.”
In the first nine months of this year, more than $9.2 billion was legally wagered on sports in New Jersey, of which $835 million was retained as revenue by casinos, racetracks, and their online partners. Masu.
During this period, more than $105 million was paid to the state in online sports betting taxes, and an additional $2.2 million was generated from retail sports betting.
Sports betting money isn’t just kept by casinos. As with any internet gambling funds, you will need to share them with external parties such as technology platforms and sportsbooks.
Christina Lena, president of the Southern New Jersey Chamber of Commerce, said the additional jobs and revenue are helping casinos. But she also noted that money made from in-person gamblers, the gambling hall’s main business, has not recovered to the levels it saw in 2019, before the coronavirus pandemic broke out.
“These 22,000 casino jobs also require focus, care and attention,” she said.
Many speakers expressed concern about gambling addiction in New Jersey.
Grondin said between 1% and 3% of adults nationwide are problem gamblers. In New Jersey, that number is 6%.
Since the New Jersey Supreme Court’s 2018 victory, calls to the agency’s 800-GAMBLER helpline have increased by 277%, many of them from young people.
Lori Kalani, chief gaming officer at DraftKings, said her company and the industry as a whole takes customer protection seriously. She grew up in Nevada in a family with gambling problems.
“Online gaming is for fun and entertainment,” she said. “At DraftKings, we are committed to helping our players play responsibly.”
Kalani said DraftKings has 60 employees dedicated to responsible gambling efforts and regularly contacts and provides assistance to customers whose gambling activity suggests they have a potential problem. In serious cases, accounts will be suspended or terminated.
NCAA Executive Vice President Tim Buckley has backed a pending bill in New Jersey that would ban betting on college athletes’ performance statistics as a way to protect student-athletes from online harassment and intimidation.
He cited the example of University of North Carolina basketball player Armando Bacot, who in March received more than 100 direct messages from bettors upset that he didn’t get enough rebounds to win a bet on a particular game. said.
Leah Nower, director of the Center for Gambling Research at Rutgers University, said more than two-thirds of gamblers place live bets during games.
“It will be decided soon,” she said. “The odds change. It’s impulsive and can be influenced by alcohol consumption. Young people bet a lot in the game.”
He also said 14% of New Jersey sports bettors reported considering suicide, and 10% actually attempted suicide.
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