FreedomAtStake's Blog

NJ: Gambling can pay for stuff

By FreedomAtStake | View all Posts
Posted Monday, April 21, 2008 10:22 AM   2 comments
NJ.com released a story over the weekend basically stating the obvious, which is that gambling is a great potential source of revenues for state budgets. Apparently, they are only figuring this out now.

I kid, but the underlying facts of the matter are very serious. There is a huge and relatively untapped source for state revenues available out there, and with the economy struggling, we are going to see a lot more politicians taking the leap and going to the people with plans to offer more gambling options.

For a state like New Jersey, it is a much easier sell. Gambling has existed now in Atlantic City literally for decades, and yet the state still can't seem to get it right. As the article states, "While only Nevada casinos generate more revenue, New Jersey takes in fewer tax dollars from gaming halls than five states -- including Pennsylvania. New Jersey was the only state last year with a net loss in casino tax revenues."

So whatever they are doing right now in Jersey, they are doing it wrong. It doesn't take a detective to sniff out that there must be a lot of strange accounting going on. At the very least, there is lots of room for improvement.

As a sports gambling fan myself, I am particularly hopeful about the possibility for sports gambling in New Jersey. It's an idea that has been bouncing around for a while, and is starting to gain momentum in the Garden State.

The problem is the so-called Bill Bradley law passed in 1992 which basically stops any states, which didn't already allow it, from allowing sports gambling.

I like Bill Bradley, but looking back, that was probably the stupidest law he ever backed, and it has had a lot more unintended negative consequences then he ever could have imagined. In the 15+ years since it passed, the world has changed and pro atheletes are probably the most over-paid (and therefore least "corruptable") professionals on the planet.

This is an issue that won't go away. Right now, there is a LOT of potential revenue out there that states are leaving on the table.
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FreedomAtStake says:
04/21/08 03:08PM
You make some good points Steelhop.

I'm talking about the current situation in NJ, where they have the lowest casino tax rate in the nation. If they simply brought that up to national standards, it would probably add a lot of $$$ to the state.

And yes, I think no sports gambling was a stipulation when AC was allowed to open casinos, but times have changed.

As you said, I doubt this would be a big revenue driver, but that it not the point. Sportsbooks are traditionally small big profit centers at casinos, but they are still a big draw. People come to the casino to place a bet, and stay to drink and play blackjack. That's why Vegas casinos put an inordinately large amount of space and glitz into their sportsbooks - it's a draw.

Finally,. sports betting is only a small part of this story. The bigger point is the fact that NJ has been hiding from its gambling revenues for years as if they are embarrassed. The looming recession is going to change that.

drhl says:
04/27/08 06:28PM
To set the record straight New Jersey was one state under the law  prior to the Bradly law that was allowed to have sports gambling if instituted by a certain date back when...They had a statewide referendum and VOTED it down,,,So much for the state of NJ and their infinite wisdom
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User: Freedom@Stake
Joined: July 1995
Location: Ireland
Team: Florida State Seminoles
Occupation: Media

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