New Jersey Governor signs sports betting bill into law
First legal bets expected to be taken on Thursday
New Jersey Governor Phil Murphy signed Assembly Bill 4111 into law late yesterday, in a move which sees the state realise its ambitions to offer legalised sports betting.
The law, which was approved by both parts of the New Jersey legislature last week, allows casinos and racetracks to accept on-property bets almost immediately, with a 30-day period before they can seek approval to offer online and mobile sports betting.
The William Hill book in Monmouth Park said it plans to take the first bet at 10:30am on Thursday morning.
Betting is allowed on all professional sports, while betting on college games is allowed if it does not involve New Jersey teams or venues. No betting on esports, high school sports or competitive video games is allowed.
Under the law, casinos will pay tax of 8.5% of revenue from land-based bets, while paying 13% on bets placed online. Racetracks will pay the same amount, but with an additional 1.25% tax payable. All US sports bets are subject to a 0.25% handle tax, levied at federal level.
It ends the regulatory journey that began for the state over 7 years ago and culminated in the Supreme Court repeal of PASPA last month.
Speaking after signing the bill, Governor Murphy said “Today, we’re finally making the dream of legalized sports betting a reality for New Jersey.
“I’m thrilled to sign Assembly Bill 4111 because it means that our casinos in Atlantic City and our racetracks throughout our state can attract new business and new fans, boosting their own long-term financial prospects. This is the right move for New Jersey and it will strengthen our economy.”
The state is hoping to receive $12-$17m in taxes during its first year of operation, with an anticipated sports betting market valued at between $100-$140m.
Regulus Partners said in a recent note: “Given the multiple licences provided, we can expect this market to become fiercely competitive over time (only between three and six are likely to thrive, in our view, but it wont stop others trying).
“However, in the short term Betfair’s licensed exchange position as well as TVG, FanDuel and casino presence is likely to give it a material advantage in terms of speed to market and rapid impact, in our view.
However, the analyst warned the “attractive and working sports betting market” expected to be seen in New Jersey was “much more likely to be the exception than the norm”.