New Jersey, now gets roughly 20% from an online sports bet that in September had a hold of 8%, meaning the state gets 1.6% of the amount bet. So, the lottery has a major problem if their typical player switches any of his betting from lottery games, to the more convenient sports bet on his i-Phone or computer at home.

For every $100 reduction of lottery ticket purchases to place sports bets online, New Jersey loses $38.40.

And if sports betting were restricted to live gaming sites, casinos, racetracks and maybe off-track betting parlors, the state gets the $1.60 from each $100 bet, but also benefits from sales taxes of food and beverage purchases, room taxes and maybe some tax revenue from casino win or pari-mutual wagering.

New Jersey might lose direct taxation from potential online sports betting, but they avoid a negative impact to their lottery and miss the added potential tax revenues from visits to live gaming sites. Plus, we avoid the inevitable increase in compulsive gamblers, already an issue in the state.

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Football Helps NJ Sports Bets Nearly Double to $184 Million

Addendum to above article:

As feared 60% of bets were online.

The earlier article in the AC Press, also written by Wayne Parry, has less information than this one in the Las Vegas Sun, showing that 60% of sports betting was online. Only $4 million was won at the three largest live Atlantic City operations: Borgata, Ocean Resort and the Golden Nugget.

The $184 million bet, at a hold of 8%, resulted in a casino win from sports betting of roughly $15 million, and a tax of something in the $2.5 million range.