Igaming association iDEA Growth has published a new study this week titled the Economic Impact of New Jersey Online Gaming. It sets out to demonstrate the continued growth of mobile gaming in the state over six years through additional revenue, jobs, wages and consumer protections. The New Jersey model, it said, serves as an example to states seeking to legalize mobile gaming and betting.
The research throws up three key findings, the first of which concerns revenue. Since its first full year of operations, New Jersey’s online gaming gross gaming revenue (GGR) has grown at a compound annual growth rate of 24.8%.
The second relates to employment, with 6,552 jobs having been created within the sector from late 2013 through 2018.
Consumer protection is the third main takeaway from the report. New Jersey’s legalization of online gaming has, it said, brought a longstanding offshore industry onshore from a gray market into a safe and structured environment.
Jeff Ifrah, founder of iDEA Growth, commented: “The results of this report demonstrate the economic, regulatory and consumer safeguard wins that mobile gaming and betting offers a state. 80% of sports betting wagers are already placed on mobile devices or online. When bets are done legally and in the proper regulatory framework, everyone wins.”
He continued: “For the many states considering whether to legalize mobile betting and gaming, the question to ask is what could your state do with more tax dollars? The additional revenue gained from mobile gaming can be earmarked for important state initiatives.”
The research, which was commissioned by iDEA Growth and conducted by Meister Economic Consulting and Victor-Strategies, covers New Jersey’s online gaming market since its inception in 2013 through September 2019.
New Jersey is the most successful business model of the four states where online gaming is currently in operation in the US. The report covers overall market performance, gross gaming revenue (GGR), tax revenue, jobs, wages, sports betting, land-based casinos, regulation and predictions for the full 2019 year. The executive summary and full research report can be found at https://ideagrowth.org/research/ for download.