While many agree that online gambling is generally beneficial to the economy, it also hides certain risks
New Jersey authorities continue to enjoy the financial benefits of the state’s iGaming industry but are also concerned about online casinos’ impact on the overall economy and social health.
New Jersey Has a Flourishing Gaming Industry
The Garden State, which prompted the repeal of the PASPA, has been one of the most prominent pioneers when it comes to gambling. As one of the first states to launch sports betting and one of the only states to offer online wagering, New Jersey has a flourishing gambling industry.
According to the Associated Press, however, some lawmakers are concerned about the long-term impact online gambling is going to have on the land-based industry. Additionally, many are wary of the precedent for gambling harm set by the expanding gaming sector.
A recent Legislature hearing saw experts emphasize both the pros and cons of online betting. While many agree that online gambling is generally beneficial to the economy, it also hides certain risks.
Gambling Remains Very Dangerous to Vulnerable Players
For example, online gambling provides players with the dangerous ability to lose huge sums within minutes via their cell phones, argued Felicia Grondin, executive director of the Council on Compulsive Gambling of New Jersey. Currently, some 90% of sports bets in New Jersey are placed online.
Grondin added that approximately 1-3% of Americans are considered problem gamblers. However, in New Jersey, that figure is 6%, she warned. The problem gambling expert added that the number of calls to the 800-GAMBLER helpline has skyrocketed since the repeal of the PASPA. To make matters worse, many of the new calls come from young adults.
Lia Nower, director of the Center for Gambling Studies at Rutgers University, said that live betting is very risky because of its volatile nature. She added that a whopping 14% of NJ sports bettors have considered suicide and, more worryingly, 10% have attempted it.
Another negative aspect of the online gambling sector has been the decline of retail gaming. While some expected gamblers to return to casinos after the COVID-19 pandemic, many continued to play online. Considering that brick-and-mortar casinos are responsible for thousands of jobs, Christina Renna, president of the Chamber of Commerce Southern New Jersey, said that the local industry should be wary of the trends.
A NCAA representative used the opportunity to push for a ban on college player prop bets amid growing harassment concerns.
The Economic Benefits and Safer Gambling Efforts Shouldn’t Be Ignored
Jeremy Kudon, president of the Sports Betting Alliance, which encompasses the likes of BetMGM, DraftKings, Fanatics and FanDuel, insisted that online betting is instead a “tremendous economic success story.” In addition to generating millions of dollars in taxes every month, the online industry is also supporting thousands of jobs, he argued.
As for problem gambling, representatives of gambling operators emphasized that they are doing their best to ensure players are wagering responsibly. DraftKings chief responsible gaming officer Lori Kalani said that the legal sector and her company in particular are very serious when it comes to safer gambling.
Kalani elaborated that DraftKings alone has a 60-person team dedicated to responsible gambling measures, tasked with encouraging riskier players to play responsibly, or limiting their accounts when needed.
