The New Jersey sports betting market represents a trailblazer in U.S. online gambling. It was the second state to legalize online casinos (behind Delaware) in 2013. The Garden State also led the fight to legalize sports gambling, successfully winning its Supreme Court case in 2018.
Key Points on Online Gambling in New Jersey
- New Jersey legal online gambling verticals – Online sports betting, online casinos, online poker, and online lotteries
- New Jersey online gambling revenue tax rates – 13% for online sports betting; 15% for online casinos and poker
- New Jersey available online sports betting licenses – 12 licenses for land-based casinos and racetracks; each retail operator can partner with up to 3 online skins.
- New Jersey college sports wagering policy – Allowed, but no betting on in-state schools nor any college game taking place in NJ
- New Jersey sports betting legalization and launch dates – Online sports betting was legalized in January 2012; re-approved in June 2018; launched in August 2018
- New Jersey gaming regulation agency – New Jersey Division of Gaming Enforcement
Online gambling in New Jersey is robust, with mobile casinos, poker rooms, and sportsbooks available. Betting sites only need to cover a 13% tax rate, while online casinos and poker sites must pay 15%.
New Jersey allows each land-based casino and racetrack to apply for a betting license. Nine casinos and three racetracks are currently running, making for a total of 12 licenses. Each licensee can partner with three individual brands/skins. Therefore, 36 New Jersey online sports betting sites could run if the market reaches maximum capacity.
This state allows college sports gambling to a degree. It doesn’t, however, let you wager on in-state teams—no matter if they’re playing in New Jersey or abroad.
New Jersey Online Sportsbooks – History, Laws & Revenue
The Garden State underwent a long odyssey to legalize sports wagering. Below, you can see the key events that led up to regulated NJ sports betting.
- New Jersey legalized sports wagering in early 2012. Gov. Chris Christie signed a bill into effect after it was approved by a November 2011 voter referendum. However, New Jersey online sports betting sites couldn’t officially launch due to a federal ban in place.
- The state wanted to issue retail and online licenses right away. US District Court Judge Michael A. Shipp blocked New Jersey from doing so in February 2013. Shipp cited the federal ban (PASPA) in place at the time.
- NJ lawyers began laying the groundwork for a federal case to remove PASPA. The Supreme Court agreed to hear the case (Murphy v. National Collegiate Athletic Association) in June 2017. It sided with New Jersey over collegiate and professional sports leagues by striking down PASPA.
- Gov. Phil Murphy signed the updated sports gambling legislation (AB 4111) into effect on June 11, 2018. The first New Jersey online sportsbooks launched a few months later in August.
Rules on Legal Online Sports Betting in New Jersey
You must be 21 years of age or older to bet online in the Garden State. You also need to be within NJ boundaries to make deposits and place bets. Each betting site uses geolocation technology to ensure that you’re in the state before allowing wagers.
New Jersey doesn’t require you to be inside NJ borders to sign up at mobile sportsbooks. You can register from another state or even another country. You only have to worry about being in the Garden State when it comes time to deposit.
New Jersey’s legal online sports betting has proven quite competitive so far. The following operators have risen to the top and are market leaders:
Like most states, the Garden State allows college sports betting. However, it’s more restrictive than the average market regarding college wagers. New Jersey online sportsbooks must abide by the following rules:
- No accepting bets on in-state teams—even when these schools play out of state.
- No taking wagers on any collegiate sporting event in New Jersey—even if two non-NJ schools are playing.
The second stipulation doesn’t come into play often. However, it does rule out betting on NCAA Basketball Tournament games held within the state.
NJ Retail Sportsbooks
This sports gambling market isn’t solely about the online scene. New Jersey retail sportsbooks have done well too and draw many gamblers who visit Atlantic City.
Here are the retail sportsbooks that currently operate in the Garden State:
- BetMGM Sportsbook & Bar: Borgata Hotel Casino & Spa
- Caesars Sportsbook: Harrah’s, Monmouth Park, Tropicana Atlantic City, and Wild Wild West
- DraftKings Sportsbook: Resorts Casino Hotel
- FanDuel Sportsbook: Bally’s and Meadowlands Racetrack
- Hard Rock Sportsbook: Hard Rock Hotel & Casino
- Parks Sportsbook: Freehold Raceway
- The Sportsbook: Golden Nugget Hotel Casino & Marina and Ocean Casino Resort
As seen above, Caesars has the biggest land-based presence in the state with four locations. FanDuel and The Sportsbook are the only other operators with multiple NJ retail sportsbooks.
New Jersey Sports Betting Revenue
The Garden State has had no shortage of success with sports gambling. It became the first state to handle $1 billion worth of bets in a month in September 2021. New Jersey now regularly accepts over $1 billion in monthly wagers.
NJ sports betting revenue spiked in the latter part of 2021. The NFL regular season started in September and helped New Jersey become the first state to reach a $1 billion handle.
Since 2018, New Yorkers have poured over the border to enjoy New Jersey legal online sports betting. After all, the Empire State only allowed in-person bets up until January 2022. Some concern existed that NJ betting revenue would drop after New York launched mobile sportsbooks in January. However, New Jersey’s record-setting ($1.349b handle) within the same month eases these fears for now.
Are New Jersey Online Sports Betting Sites Fair?
New Jersey online sportsbooks have collectively operated with integrity since launching in mid-2018. Nevertheless, some bettors have concerns about placing online wagers in general. The following points cover why online gambing in New Jersey is safe and fair.
NJ Division of Gaming Enforcement
The New Jersey Division of Gaming Enforcement (DGE) oversees the state’s mobile sports gambling market. Operating since 1977, it’s one of the world’s most respected gaming authorities.
The DGE reviews online operator applications and conducts interviews with qualified candidates. Its goal is to issue licenses to quality betting sites while screening out potential bad actors.
This gaming authority also monitors licensees to ensure that they’re following the market’s rules and laws. It issues fines to any operator that violates the rules. For example, the DGE fined DraftKings $150,000 in March 2022 for allowing 21 bets through a Florida proxy server.
How Can I Be Sure that New Jersey Online Sportsbooks Are Trustworthy?
Each NJ sports gambling site makes a sizable investment in obtaining a license. They must pay $100,000 initially and continue paying $100k for the annual renewal fee. New Jersey online sports betting sites also have to pour significant time into the licensing process. They don’t want to waste this time by violating the market’s rules and losing their license.
In short, NJ mobile sportsbooks have multiple incentives to behave responsibly and treat bettors well. If they go astray, the DGE may crack down on them with a heavy fine.
Getting Paid by NJ Betting Sites
The average New Jersey online sportsbook offers several withdrawal options. Therefore, you shouldn’t experience any trouble getting your winnings when the time comes. Common withdrawal methods available in the legal online sports betting market in New Jersey include:
- ACH (eCheck)
- Bank transfer
- Cash (land-based casino or sportsbook cage)
- Check (withdrawals only)
- Neteller
- PayPal
- Skrill
You’re unlikely to find all of these cashout options at a single NJ betting site. However, you should find most of these methods at whatever sportsbook you choose.
New Jersey Sports Betting FAQ
Can I bet on college sports in New Jersey?
Yes, college sports betting is available in the Garden State—albeit with certain restrictions. You can’t wager on in-state schools, regardless of if they’re playing in New Jersey or out of state. Additionally, you can’t bet on any collegiate game based in NJ, even when out-of-state schools are playing
Who can run an online sportsbook in New Jersey?
Only licensed operators can offer legal online sports betting in New Jersey. Of course, anybody can apply to provide mobile betting to Garden State residents and visitors. They must first pay $100,000 to go through the application process and, if approved, receive a license. The Division of Gaming Enforcement will then review the application and decide whether to approve the operator.
Do I have to live in New Jersey to bet online?
No, you can merely be a visitor and enjoy the New Jersey legal online sports betting market. However, you do need to meet a couple of qualifications before wagering. First off, you must be at least 21 years old to make legal bets here. Second, you have to be within state boundaries when depositing and placing wagers.
Can I bet on esports at New Jersey sportsbook apps?
Yes, the Garden State is one of the few markets that allow full-blown esports betting. New Jersey previously only allowed limited esports gambling on approved events. However, the legislature passed Bill A637 in 2021 and paved the way for more-permanent esports wagering.
Does New Jersey allow anonymous online sports betting?
No, the DGE requires mobile bettors to complete registration and provide personal details. Every betting site asks for your name, address, birth date and last four Social Security digits. You also need to provide additional identity verification (e.g. driver’s license) before cashing out. These measures ensure that you’re not on a gambling self-exclusion list and are able to legally place bets.