{"id":12244,"date":"2018-08-17T22:37:44","date_gmt":"2018-08-17T22:37:44","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=12244"},"modified":"2018-08-18T15:00:07","modified_gmt":"2018-08-18T15:00:07","slug":"sports-betting-makes-sense-while-online-gambling-makes-dollars","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/sports-betting-makes-sense-while-online-gambling-makes-dollars\/","title":{"rendered":"Sports Betting Makes Sense While Online Gambling Makes Dollars"},"content":{"rendered":"

Sports betting<\/strong> has become the shiny new toy for lawmakers across the land \u2014 and they just can\u2019t seem to put it down. However, revenue numbers coming out of New Jersey continue to show that online gambling<\/strong> is actually the lucrative tax revenue<\/strong> source most truly desire.<\/p>\n

Put simply, sports betting makes headlines, while online gambling makes money.<\/p>\n

US states have been lining up to pass sports betting legislation<\/strong> since the Supreme Court gave them that right in May. However, revenue numbers for the first six weeks in the state that fought the legal battle to launch sports betting clearly show it isn\u2019t worth as much as anyone hoped<\/strong>.<\/p>\n

State lawmakers are desperate to find sources of tax revenue to help balance the budget. They get sold on sports betting based on the idea the state can get a piece of the estimated $150 billion <\/strong>wagered annually\u00a0(according to the American Gaming Association<\/strong>.)<\/p>\n

They can\u2019t tax handle<\/h2>\n

Unfortunately, they soon find out they can\u2019t tax handle. So, while Americans may very well bet upwards of $150 billion on sports this year, the piece that sportsbooks keep in revenue and the tax revenue generated ends up significantly smaller.<\/p>\n

Numbers released by the New Jersey Division of Gaming Enforcement<\/a><\/strong> this week showed two significant things. The first is that NJ sportsbooks have taken in more than $57 million<\/strong> in bets since launch in mid-June. The second is that the operations earned just $7.3 million<\/strong> of that in revenue.<\/p>\n

The state\u2019s land-based sports betting revenue tax rate sits at 8.5 percent. Therefore, New Jersey\u2019s piece of the pie has amounted to approximately $620,500<\/strong> so far. It\u2019s a number that isn\u2019t going to make a significant dent in New Jersey\u2019s $37.4 billion budget<\/strong>.<\/p>\n

It\u2019s true the state\u2019s legal sports betting industry is just getting off the ground, and doing so in a traditionally dead time for sports. After all, the NFL<\/strong> and NBA<\/strong> seasons don\u2019t get going until the fall. But, it may still be awhile until sports betting even approaches online casino.<\/p>\n

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