M E M O R A N D U M

TO:                       Members of the Senate State Government, Wagering, Tourism & Historic Preservation Committee and the Assembly Tourism, Gaming and the Arts Committee 

FROM:                 Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                        Impact of Online Sports Betting on South Jersey

Chairman and members of the committee, thank you for the opportunity to provide testimony on the economic and job impacts of sports betting in New Jersey.

The gaming and hospitality industry has long been a cornerstone of Atlantic County’s economy, serving as a major driver of jobs, tourism, and local revenue. Atlantic City, in particular, relies heavily on its casinos and entertainment venues to attract visitors, generate business activity, and support a wide range of local industries, from restaurants to retail. This sector is vital not only for the livelihoods of thousands of South Jersey residents but also for the region’s broader economic stability. While we see positive revenue contributions from sports betting, we are concerned about trends that threaten the long-term sustainability of this critical industry.

Since the 2018 Supreme Court decision to lift the federal ban on sports betting, New Jersey has successfully positioned itself as a leader in the industry. The revenue generated through sports betting has provided a valuable stream of income for the state. According to the Division of Gaming Enforcement’s latest report, the September 2024 revenues for internet gaming set records at $208.1 million. However, brick-and-mortar gaming revenues lagged behind. Land-based returns for September were 6.5 percent below 2023, the lowest since the pandemic. Year-to-date, brick-and-mortar revenues were flat year-over-year; $2.15 billion compared to $2.17 billion for 2023.

While it’s important to recognize that while the state’s sports betting industry has thrived, we remain concerned about the decline in foot traffic to South Jersey’s brick-and-mortar casinos. This trend poses a growing challenge for the casino and hospitality sectors, which have traditionally relied on in-person patrons for revenue.

Atlantic City’s gaming industry employs approximately 22,000 South Jersey residents, approximately 21,000 of which are from the seven most counties of South Jersey. With fewer visitors traveling to casinos due to the convenience of sports betting, there is an increasing concern about job loss in South Jersey’s and the impact it would have on the South Jersey region as a whole.

The convenience of mobile and online sports betting platforms has significantly reduced the need for bettors to visit physical casinos. While this shift has boosted state revenue, it has had a direct impact on the number of visitors who support the state’s casinos, restaurants, hotels, and local businesses.

The CCSNJ recognizes that sports betting, particularly in its digital form, is here to stay and provides significant economic benefits for the state. However, we believe that the success of online platforms must be balanced with efforts to preserve the viability of physical casino locations and the local businesses they support.

It is essential that policymakers work closely with industry leaders to find ways to prioritize the health of the state’s brick and mortar casinos, and therefore reinvest in the long-term sustainability of the region. The CCSNJ stands ready to assist in working on policies that help to ensure the health of the gaming industry, South Jersey jobs and its economy.