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iGaming is creating jobs, boosting state tax revenues and spurring technological innovation in states where it is operating.

As described in the recent report “The Economic Impact of New Jersey Internet Gaming,” over 3,000 new jobs were created during the first three years of iGaming in New Jersey, accounting for nearly $250 million in wages. In 2016 iGaming generated nearly $50 million in state tax revenues. iGaming is also growing revenues for land-based casinos.

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.

Brands Research Study

Policymakers considering the issue of online gambling face a number of key decisions,  including the question of how many unique brands (sometimes referred to as "skins") to allow under each individual online gambling license. To date, the majority of states (including New Jersey, Pennsylvania, and West Virginia) allow some level of multiple-brand participation under each online gambling license.

In this research study, Eiler’s & Kreijec performed a comprehensive evaluation of New Jersey's regulated online casino market. The study revealed an overwhelmingly positive connection between the presence of multiple brands per license and market size.

New Jersey's online casino market is roughly 50% larger in terms of total annual revenue than a New Jersey market where only one brand was allowed per license.

Download the Executive Summary or the Full Research study for greater detail on the effects of multiple brands in sports betting and online gaming:

  • A greater number of available online gambling brands can result in a larger overall market in revenue terms.
  • A larger overall market can result in a larger base of taxable revenue.
  • The imposition of license fees not only on master license holders, but also on partner brands, can provide states with additional sources of revenue.
  • A greater number of available online gambling brands can increase competition in a market, which can create benefits for consumers including better product variety and quality, and better product prices and promotions.
  • A multiple-skin model can increase revenue parity between larger and smaller operators in a market.
iGaming's Broad Positive Impact

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