Online Gaming Study Results

To quantify the economic impact and to assess the social impact of online gaming in the state of New Jersey, iDEA contracted with independent researchers Alan Meister, Ph.D. of Nathan Associates and Gene Johnson of Victor Strategies to conduct a study.

The study shows that since becoming the third U.S. state to permit the legal operation of internet gaming, New Jersey iGaming has clearly been the most successful of the three. New Jersey iGaming experienced strong growth since its inception, putting it far ahead of Nevada and Delaware in terms of registered player counts, gaming revenue, and tax revenue. The industry generated $34.5 million in gaming taxes for New Jersey in 2016, including approximately $29.5 million to the state and $4.9 million locally, reflecting a 32% increase over 2015.

New Jersey iGaming is also considered a success from a regulatory perspective, with some of the strictest iGaming regulation protocols in the world. The state’s rigorous standards have successfully addressed the valid concerns voiced by opponents and skeptics of iGaming, and proven that legal intrastate iGaming can be successfully operated and safely regulated. These regulations have guaranteed that internet games meet regulatory standards and its operators are accountable; they assure players that they are interacting with trusted brands, are protected from fraud and cheating, and will receive payouts when they win.

New Jersey’s experience provides valuable lessons for other U.S. states considering iGaming legalization in the future. The operating environment and regulatory structure is portable and could be modified to suit the individual needs of other state jurisdictions.

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