a lot of hay was made last few months Now that New York’s online sportsbook is up and running, how New Jersey’s tax resources are going to be a little lighter going forward.
Since legalized gambling began in the Garden State in June 2018, the state has collected more than $165 million in taxes from sportsbooks. Eilers & Krejcik, a game research company — New Yorkers contribute between 20% and 25% of that number.
So, at first glance, it looks like the state is looking to cut tax revenue from sports betting by 20% to 25%, as New Yorkers can now give up their paths to Hoboken to make money on the Giants. (Pro tip: don’t spend your money on the Giants).
Running QB sneaks from their own 4-yard line at third and ninth from this formation is a sign of a difficult time for the Giants offense. pic.twitter.com/zFHSHsJikA
— Field Yates (@FieldYates) January 9, 2022
But what if that’s a little exaggerated, or that the hit for New Jersey, and therefore the tax revenue, isn’t as significant as some have described?
In that case, the country should thank the syndicate.
At least one industry source with insider knowledge of the syndicate thinks so.
Isn’t it illegal?
But the first thing you might be wondering is, aren’t gambling syndicates (especially those with out-of-state bettors) illegal to the highest degree, since proxy gambling is prohibited?
The answer is yes. Messenger betting is illegal in New Jersey. A New Jersey person may not bet on another person’s sportsbook account, regardless of whether they are New Jersey residents. This violates both state and federal law.
Plus, the sportsbook makes it clear in its terms of service that it’s not cool. draft kingsfor example, not allowed “Conspiring with other individuals or engaging in any kind of syndicated play. “
“Messenger or proxy betting is illegal in New Jersey due to New Jersey regulations, but the enforcement and detection of messenger betting is the responsibility of the operator,” said a syndicate source. The way is to get bettors into the game.”
原文: Throw me a million dollars and I’ll throw Finster.
“The functioning of the syndicate technically violates the Sports Betting Act, an amendment to the Casinos Control Act,” Frank said. DiGiacomo is a partner at Duane Morris, a law firm in Cherry Hill, specializing in the gaming industry. “But that doesn’t mean it isn’t happening. The enforcement side of it is another matter. If the sportsbook knew it was happening, they would either do something or close the account or We should at least ask more questions.”
However, one prominent professional gambler believes there is a big difference between messenger betting and syndicate reality.
“A syndicate is just a group of people who combine their resources and gamble as a group,” says a professional gambler known as Captain Jack Andrews. “These resources can be a combination of knowledge or access to a variety of regulated and unregulated accounts. Just like you and I join forces.” Bet MGM Accounts and I know some easy ways to beat them. We are like a mini hedge fund.
“As long as we all have a financial equity stake in the bet, it is allowed by law and hated by operators. will be kicked out of
The syndicate is real and possibly spectacular
But whether or not sportsbooks know what they’re doing, industry sources say syndicated betting is common in the state.
Syndicate Betting?? Never heard of it until recently
— Tom Shepard (@Leon_Chestnut) January 10, 2022
“There are many syndicates in New Jersey already operating that way,” the source said. “That’s why the expected sharp drop in handles as a result of New York’s legalization won’t be as bad as people think. New Jersey already has a ton of out-of-state and out-of-state money. and the entity responsible for its protection are motivated to ignore it all.”
The source then presented a bit of mathematics to support his hypothesis.
“Who really believed that 3 million men between the ages of 24 and 60 in New Jersey really bet $1.3 billion every month?” the source wondered. “It’s not malicious.
Again, how much action is that?
That’s an impossible question, at least for the time being.
“It’s very difficult to get a sense of its scale because it’s not technically legal,” said DiGiacomo.
The New Jersey Bureau of Game Enforcement did not respond to a request for comment for this article, but when it released earnings numbers for January, the comparison to January last year was in line with the first full month of online betting in the United States. may be saying. New York.
New Jersey leads the way
Of course, now that betting is legal in New York, it may seem like syndicate action may dry up, but sources believe that no one is in a hurry to fix what isn’t broken. increase.
By the way, sources say New Jersey is on the cutting edge of this kind of action, and currently no state really competes with any other state…not even Nevada.
“Nevada remains a very different market than the rest of the United States,” said the source. “Different operators have different expectations from their customers. There are Vegas guys in the syndicate, but they walk up to the counter with cash instead of betting on the app.
“The states that favor New Jersey are those that have a high number of books, the ability to deposit and withdraw cash from cages, and those cages are located in areas with a high concentration of those cages, and the states that have few or no books. state income tax.That’s why if Nevada got their act together, they’d definitely get more syndicate action.
Obviously, time will tell. If your industry sources are correct, or nearly so, tax revenue on sportsbook money in New Jersey will be fine. In addition to that, the state has tax revenues for online casinos..