The iGaming and sports gambling landscape in the US has undergone a considerable change, thanks to New Jersey’s pioneering efforts. As the first state outside Nevada to embrace mobile sports betting, New Jersey effectively set the stage for the widespread legalization and regulation of the industry.
Thanks to strategic legislation, innovative policies, and a commitment to staying ahead of the curve, New Jersey has set a blueprint for all other states to follow. So how did New Jersey set the ball rolling on the online gambling and sports betting revolution?
What we cover
Setting the legal and regulatory framework
New Jersey’s very long journey towards becoming a gambling powerhouse started with its early adoption of legal casino gambling in Atlantic City in the late 70s. Once the state legalized casino gambling in the city, a foundation was provided for the state’s future gambling endeavors. The experienced acquired from running brick-and-mortar casinos is what later influenced the state’s approach to iGaming.
It wasn’t until the state’s strategic decision to legalize online gambling in 2013 that the foundation for the digital revolution was laid. Online casinos were legalized as a response to the declining revenues of AC casinos, as well as the changing preferences of the consumers. Once the market was legalized, the state’s regulatory framework for iGaming became a blueprint for other states that had been considering legalization.
Although the online casino market was decriminalized, the sector faced and has continued to face its fair share of challenges. The journey towards regulation was no doubt a major step, but it was by no means the end of the road for the online casino market. The challenges that emerged after decriminalization highlighted the complexity of the market, as well as the need for ongoing adaptation and innovation.
For instance, while legalization did allow online casinos to operate within the legal limits, creating effective regulations that safeguarded the needs of the consumers, prevented money laundering, and ensured fair gameplay required meticulous planning and coordination. Crafting regulations that strike a balance between promoting healthy competition and preventing exploitative practices has also been an ongoing challenge for the market.
The issue of responsible gambling has also always been a focal point for the iGaming industry. With easy access to gambling platforms, there has been a growing emphasis on preventing gambling addiction and promoting responsible betting behavior. Online casinos in New Jersey have been forced to implement measures such as setting deposit limits, offering resources to those at-risk, as well as self-exclusion options.
Despite these challenges, New Jersey’s iGaming sector has continued to prosper since its legalization. New Jersey’s proactive regulatory framework, coupled with the state’s commitment to responsible gambling and technology innovation had allowed it to navigate all these obstacles effectively. As a result, New Jersey now boasts the number 1 iGaming market in the North American region.
Overturning PASPA and embracing legal sports betting
One of the most considerable milestones in the online betting and sports gambling revolution was the successful legal battle to overturn the Professional and Amateur Sports Protection Act commonly known as PASPA in 2018. New Jersey’s role in having PASPA overturned could not be understated as it led the fight to challenge PASPA’s prohibition on sports gambling, ultimately succeeding in the Supreme Court.
It was this victory in the Supreme Court that opened the door for other states to legalize and regulate sports gambling thus reshaping the landscape of the entire betting industry. Former State Senator Ray Lesniak, as well as New Jersey Division of Gaming Enforcement Director David Rebuck both emerged as instrumental figures in reshaping New Jersey’s various sports betting initiatives.
Lesniak’s relentless efforts to navigate sports gambling legalization through the judicial system, as well as Rebuck’s commitment to regulatory excellence, have been crucial in advancing the industry. Lesniak’s and Rebuck’s vision and dedication have both played a considerable role in New Jersey cementing its position as the iGaming leader.
As the head of the NJ Division of Gaming Enforcement, Rebuck and his team were extremely well prepared for the debut of internet sports betting in 2018. Rebuck was already experienced with regulating online casinos when the market was legalized in 2013, which provided him with a strong foundation to build upon.
Rebuck’s accountability, as well as his dedication to regulatory efficiency, have consequently helped to earn Garden State a reputation as the blueprint for other states to follow. Thanks to the state’s structured regulatory framework, its combined success of online casino and sports betting has helped to set a standard that other states are emulating.
It is worth noting that the journey towards revolutionizing the iGaming and sports betting landscape was not without plenty of challenges. Although the New Jersey iGaming market is extremely well established today, the market faced hurdles including industry readiness, as well as technical limitations.
Thanks to partnerships between daily fantasy sports sites such as FanDuel and DraftKings, sports betting growth was accelerated. By the end of 2018 when sports betting was legalized in New Jersey, 8 different online sportsbooks had already launched. As you can expect, New Jersey’s success has reverberated all through the nation.
Today, 24 states and Washington DC offer regulated and taxed online sports betting. The impact of New Jersey’s pioneering efforts is evident in the growth of the industry with numerous states now benefiting from the profits generated by legal betting. What began as an initiative in the NJDGE offices on the AC boardwalk has evolved into a countrywide movement.
Final Thoughts
New Jersey’s role in spearheading the online gambling and sports betting revolution cannot be understated. Thanks to its strong legal framework, visionary leaders, and commitment to excellence, Garden State is now the perfect blueprint for the rest of the nation. The contributions of important figures such as David Rubeck and Ray Lesniak have no doubt helped to shape the industry for the better.
