Over the past three months, around 80% of all New Jersey sports betting handle has come via online sportsbooks.

Such a meteoric rise took center stage at a public hearing to discuss the legalization of sports betting in New York on Wednesday. Particularly as it relates to New Yorkers’ participation in NJ sports betting.

FanDuel Sportsbook testified that a quarter of its online bettors in the Garden State registered with New York addresses.

Additionally, GeoComply Vice President of Regulatory Affairs Lindsay Slader noted that 44% of users attempting to log into a New Jersey app from outside the border hail from New York.

Essentially, these panelists explained, NJ sports betting has soared thanks in large part to out-of-state users — specifically those from the Empire State.

New York’s delay is New Jersey’s gain

Early into the meeting of the Senate Standing Committee on Racing, Gaming and WageringSen. Joseph Addabbo shared a bold claim:

New York residents, he noted, deserve some credit for the massive success of NJ sports betting.

As the hearing went on, the testimony of panelists seemed to support Addabbo.

According to FanDuel, as much as 25% of its online NJ sports betting activity can be attributed to New Yorkers. (FanDuel Sportsbook, it should be noted, has become the NJ sports betting leader.)

Slader then testified that about 8% of unique user accounts across all NJ sportsbooks come from New York.

She added, though, that GeoComply, the geolocation company used to ensure gambling occurs within state lines, is “actively blocking play” from users attempting to wager outside New Jersey.

Out-of-staters swell in NJ sports betting

In late 2018, Slader said that about 80% of all geolocation hits in New Jersey come within 10 miles of the state border. To boot, about 44% of users appear within 2 miles of the state line.

At the time, FanDuel Sportsbook estimated that 10% of its online customers hailed from New York, a number similar to the total boasted by DraftKings Sportsbook.

According to the hearing, that number has climbed.

While that 44% estimate of New Yorkers attempting to wager outside NJ certainly opens eyes, Slader hinted that more NY residents utilize the burgeoning NJ sports betting industry in other ways.

“We don’t know who these players are. We don’t know where they live,” Slader said during Wednesday’s hearing. “I think FanDuel had mentioned that it was based on people’s registered addresses.

“So there’s plenty of people, I’m sure, that live in New York that are traveling over to New Jersey, but they just never tried to get in from New York. Therefore, we would not see that attempt from New York in our data.”

Will NY sports betting affect NJ industry?

Sports betting handle and revenue in New Jersey has continued to grow, even after nearby Pennsylvania debuted its legalized industry.

Within the next few weeks, PA online sports betting should launch, potentially further attracting business away from New Jersey.

So, how much of an effect on NJ sports betting will the legalization of the industry in New York have, if it happens?

Late last year, Slader expressed doubt that much would change in the Garden State.

“I don’t know if it’s going to change,” she said, “because we don’t know how the product will differ between the PA operators and the NJ operators and who the people are that we locate.”

Then again, Slader added, online wagering in nearby states could have an impact on NJ sports betting.

“Certainly, for some players in PA who currently shuttle to NJ to place their bets, they may do so less frequently when they have easier options from their side of the border. But it may well be that the products are differentiated enough between PA and NJ operators that there is still some ‘shopping and hopping’ from players wishing to get the best of both worlds.”

Grant Lucas

About

Grant Lucas is a longtime sportswriter who has covered the high school, collegiate, and professional levels. A graduate of Linfield College in McMinnville, Grant has covered games and written features and columns surrounding prep sports, Linfield, and Oregon State athletics and the Portland Trail Blazers throughout his career.