Since the legalization of gambling in New Jersey in 2018, many people have been wondering where the tax money goes. Now that it’s legal to place bets in the Garden State, there’s an opportunity to find out where the money goes. Using data from the New Jersey Sports Insider and the New Jersey Department of Treasury, this article will tell you exactly where the money from legal betting goes in NJ.
The Top Revenue Producing Casino Outlets In New Jersey
Prior to the legalization of instant, online, and video gaming, Americans generally traveled to casinos in other states to place bets and enjoy some entertainment. After the legalization of online gambling in 2014, the number of New Jersey residents traveling to casinos declined by almost 30%. Since then, casinos have been forced to adapt to the new way of life in New Jersey and find a way to keep their customers satisfied.
A few of New Jersey’s largest casinos took a while to adapt to the new legal landscape, but eventually found a way to provide a satisfying gaming experience for their customers. The number of recreational and social gamers in New Jersey has increased by almost 100% since the beginning of 2018. With legal betting now available, the opportunity to place bets on the go has opened up. Furthermore, with many states having legalized sports betting, the number of sports fans in the state has increased as well. This is good news for the casinos as they can now tap into this growing audience and satisfy their customers with top-notch sporting events and action from around the world.
The following table lists New Jersey’s 10 largest casinos based on revenue and ranked in order of their estimated annual revenue (courtesy of the New Jersey Sports Insider).
1. Trump Plaza
3. Meadowlands Racetrack and Casino
4. Resorts World Casino and Hotel
5. The Horsemen’s Casino and Hotel
6. Golden Nugget
7. Hennesey’s Hotel and Casino
8. Showboat Atlantic City
9. Trump Taj Mahal
10. Harrah’s Casino and Hotel (recently purchased by MGM Resorts)
As you can see from the table above, the largest casinos in New Jersey tend to cluster in urban areas along the east coast. This is mainly due to the fact that it’s difficult to reach the middle of the state without passing through New York City first. Furthermore, many of New Jersey’s largest casinos are either on the water or located near a major airport. This helps the casinos draw in business from around the world as well as nearby major cities such as New York and Philadelphia. These locations also make it easier to transport customers to and from the casinos. Some of New Jersey’s smaller casinos rely on the neighboring states of Pennsylvania and New York for business while others rely on nearby metropolitan areas for customers. This is mainly because it’s difficult to get around the state without passing through a city.
How Does Legalized Gambling Impact Tax Revenues In New Jersey?
One of the main impacts that legalized gambling in New Jersey has had on the state’s tax revenues is the growth of the horseracing industry. Prior to the legalization of wagering on horse races in 2018, there were only a few casinos in operation in New Jersey. Since then, the number of tracks and bettors in the state has increased as well. This trend is likely to continue in the near future as there are currently 18 horse racing venues in New Jersey with more planned. In 2020, a lottery was introduced in New Jersey to help defray the costs associated with administering the racing industry. The new gambling expansion in the state won’t only benefit horse racers but will provide a useful funding source for a number of different areas.
On the opposite end of the spectrum, legal betting has had a negative effect on the state’s banking and financial services industries. Prior to the legalization of online and mobile wagering in 2014, most New Jersey residents had to go to a physical casino to place bets and do business with the industry. Since then, the number of banks and credit unions in the state that provide financial services to the gaming industry has declined by almost 40%. The rise of online and mobile banking has made it easier for consumers to transfer money and do business online, eliminating the need for a traditional bank account. As a result, less people are keeping their financial accounts in the traditional banking system and more are opting for cryptocurrency wallets or digital payment apps such as Venmo and PayPal. The traditional banking and financial services industries in New Jersey are still struggling to adapt to the new ways of doing business and figuring out how to integrate online and mobile banking into their operations.
The Cost Of Traveling To A Casino From New Jersey
From the onset, the state-legalized gambling industry has been a source of both revenue and job creation for New Jersey. As of January 2021, the state has collected over $21 million in tax revenue from sportsbooks, horse-race tracks, and casinos. In addition, the industry has provided over 150 jobs in the state. While these numbers are positive, they aren’t nearly enough to make up for the loss of revenue that New Jersey’s largest casinos have experienced due to the increase in competition. In the near future, it’s likely that New Jersey’s largest casinos will have to adjust their business models to stay afloat.
Where Does The Tax Money From Legalized Gambling Go?
As mentioned above, prior to the legalization of online and mobile gambling in New Jersey in 2018, most people placed their bets at casinos and tracks in other states. Due to the increase in competition and decrease in industry profits, many of New Jersey’s largest casinos have been forced to close their doors. Since then, the state has lost over 100,000 jobs along with an incredible amount of tax revenue. In 2022, New Jersey imposed a 21% tax on all online and mobile wagering. The goal is to increase government revenue and stop the bleeding caused by the closures of the state’s largest casinos.
The tax collected from online and mobile wagering in New Jersey is deposited into the New Jersey Education Capital Reserve Fund. This fund is used to support K-12 public schools in the state. The money raised by this tax is also used to provide financial support for higher education in New Jersey. The fund is overseen by a Board of Trustees consisting of seven members, including the New Jersey state treasurer. The chair of this Board of Trustees is appointed by the Governor of New Jersey with the advice and consent of the state senate. The New Jersey Education Capital Reserve Fund is one of the largest of its kind in the country.
Are You Ready To Place A Bet?
With the world’s best chefs, extraordinary views, bustling crowds and pulse-pounding action, the new casino in New Jersey has everything a gamer could want. So, are you ready to place a bet? You can now get your legal fix at a sports book, café, or casino.