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Industry and researchers cite big revenue, jobs from sports betting and urge balanced tax policy
Summary
At a joint Senate–Assembly hearing, academic and industry witnesses highlighted sports betting’s rapid revenue and job growth in New Jersey while urging policies to sustain brick-and‑mortar casinos, protect consumers and avoid tax increases that could push players to illegal operators.
A joint Senate and Assembly committee heard sharply divergent but intersecting accounts of online sports betting’s benefits and risks on Thursday, as university researchers, business groups and operators described fast revenue growth and job creation while urging measured regulation.
Dr. Jane Bakunowitz, director of the Lloyd D. Levinson Institute of Gaming, Hospitality and Tourism at Stockton University, told lawmakers that since legalization sports betting has become an increasingly important revenue source for New Jersey. She said 2023 generated “more than $1,000,000,000 in gross gaming revenue” and that internet gaming and sports betting together have contributed hundreds of millions in tax revenue to the state. Stockton cited Division of Gaming Enforcement estimates that roughly 4,000 jobs are tied to internet gaming and online sports betting in Atlantic City and nearby operations.
The business community framed those numbers as an economic boon. Christina Renne, president and CEO of the Chamber of Commerce Southern New Jersey, said Stockton’s employment estimate is “a number we love to see” but warned that headline online revenue can obscure ongoing struggles in Atlantic City’s brick‑and‑mortar casinos. "When you see these headline‑grabbing numbers around sports betting and online betting, those 22,000 casino jobs in brick‑and‑mortar facilities need focus, care, and attention," Renne said.
Industry representatives emphasized the legal market’s economic footprint and cautioned lawmakers against sharply raising tax rates. Jeremy Coudon, president of the Sports Betting Alliance (FanDuel, DraftKings, BetMGM and others), said New Jersey has become a national hub for online gaming and that his members employ thousands in the state. "Hudson County has truly become the Silicon Valley for the online gaming industry," he said, noting operators occupy significant office space and contribute to local philanthropy.
Coudon warned that raising tax rates too far could drive customers to unregulated offshore or “sweepstakes” operators that offer superior promotional credits and odds. He and other witnesses argued a tax band of roughly 10–18 percent is optimal to sustain a legal market while funding state priorities; he said New Jersey’s approach strikes a workable balance. "Higher tax rates risk losing customers to the illegal market," Coudon said.
Lawmakers asked for more data on market share and on how promotional credits are taxed. Industry witnesses agreed to provide additional figures to the committees. Lawmakers also pressed for policies that protect Atlantic City’s physical casinos while preserving the in‑state economic gains from online operations.
No formal votes or policy decisions were taken. The committee concluded the hearing with requests to collect more operator data and follow up on possible regulatory or legislative responses.
The joint committees plan to circulate additional questions and requested documentation from witnesses for further review.
