Delaware and New Jersey were the first states to offer a full suite of sports betting options, but the booming NJ gambling market will likely face repercussions. The disruption comes in the form of the launch of sports wagering throughout PA.
Previously, the 36% tax for PA casinos was simply too much to handle for PA sportsbooks. However, the PA officials are rethinking their strategy. With re-examination of the industry and obvious success in NJ, PA officials see a new possibility to increase their profits.
The Cost of Convenience
NJ casinos started with a modest $16.4 million and multiplied it later to $330 million. However, there is a trick to the explosive growth of the NJ gambling economy. The gamblers from the surrounding states inflate the numbers.
Eric Raskin, the US Bets managing editor, claims that he is currently traveling to New Jersey to bet. On the contrary, he typically travels to the closest Starbucks, places a bet, and then heads home. However, Raskin claims that his state trips are going to be over in the near future. As soon as PA gambling apps are available, Raskin believes that gamblers in NJ and DE are going to drop.
There’s another thing to consider about the gambling industry in these mentioned countries. PA is much bigger than both DE and NJ. This will most certainly be reflected in their profit margins.
Soon, the people in Pennsylvania are going to switch to their brick-and-mortar spots and their apps. Then, the NJ gambling industry may face a previously unimaginable loss.