Lost on the national sports scene Tuesday night, amidst the rising scandal at Penn State and the NBA lockout non-news, was the vote by Garden Staters to legalize sports betting in the State if the Federal Ban on such activities can be overturned. Right now Nevada and its casinos remain king of legal sports books, with New Jersey and other states where other forms of casino gambling are legal remain on the outside. While it remains a long road to legalization, the overwhelming vote by the citizens of the state, a state with more professional teams in the area than any other place in the country, if not the world, could be a boon to a struggling state infrastructure which once relied heavily on the casino and racing industries for a large share of the tax dollars. With the economy changing, the emergence of casinos in other states, the change and decline in horse racing and the advances in multiple state lottery systems, those large scale streams of income have gone the way of the dinosaur.
Professional sports leagues will continue to lobby against a New Jersey sports book. Nevada, with no professional teams, is seen in many circles as almost a safe haven for sports betting. New Jersey, with not just the Jets, Giants, Nets and Devils but with all the Philly and New York teams in close proximity, could be seen by many as wrought with issues and potential corruption. Those on the ‘pro’ side of the gambling issue see those teams in proximity as a huge plus for dollars spent, hotels used, and taxes earned. There is also the issue of college sports gambling. Again Nevada, with the University of Nevada (in Reno) and UNLV as the state’s only Division I programs, has a small percentage of local college action that is not on the official sports book. New Jersey, between Rutgers, Monmouth, Seton Hall, St. Peter’s, even NJIT, and all the New York and Philly area schools, could again pose a larger issue for regulators. Boxing, king in Las Vegas, along with MMA, pull in large dollars. New Jersey could look to also re-raise that tide and appeal with large scale fight cards more than ever. So the debate will rage in, with lobbysts on both sides pleading their case.
From a sports branding standpoint, the dollars that could flow into the State, along with jobs and technology opportunities could be a windfall. Simulcasting has tried to keep race tracks moving along when meets have been shortened, in an attempt to bring more dollars in. a sports book at places like the Meadowlands and Monmouth would boost attendance, dollars and jobs. The flailing casinos in Atlantic City would get more interest, the ones doing well would drive their dollars upward. More dollars and more people mean larger brand spends and promotions in and around the tracks and casinos, which also lifts the bottom line. The casual dollars going elsewhere could now flow into a suffering local economy.
Would the worry of a criminal element or corruption come to be real for professional and collegiate sports? Nevada seems to have faired well with an increasing number of collegiate events, and the NBA All-Star Game did OK in the city. The biggest issue with Las Vegas not getting a team these days seems to be more economic than because of gambling…the base economy of tourism may not have the solid corporate base to support large numbers of suites that would need to be sold for large revenue. Yes, casinos would provide some of the seats to be filled, but in the end casinos want people in their casinos, not watching hoops or hockey. Rest assured, any sports book in New Jersey would be heavily scrutinized and regulated, with the leagues, especially the NFL, watching every step of the way.
New Jersey is not Nevada, and the lessons learned in the rise and fall of the casino industry has shown that. Las Vegas has re-invented itself time and again as a travel destination city, with gambling as the backdrop. Atlantic City has not. Would the sports book be the catch for all that ails the State? No. Would it be an intriguing partial answer for tourism and revenue? Probably. Would it cause more headaches to a state already with enough issues with corruption? Hard to tell. What about all those pro and college games in such proximity, would they all be off the board, which could curtail interest greatly? To Be Determined. One thing is clear though. The citizens of the state spoke pretty loudly Tuesday night, and they would like to place their bet on sports books to help raise revenue. If it can clear the federal hurdle, not an easy one by any stretch, it will certainly be an interesting sports business study to see how new age technology and old school sports wagering can re-invent themselves together in the Garden State, a bet that not too long ago continued to be a long shot, but one whose odds suddenly improved this week.
