On Feb. 9, Americans gathered for the 59th Super Bowl. This Super Bowl was special in that there was more money in it than any other in history. And it wasn’t just because of record-breaking prices for advertisements or higher attendance than the year prior. But also because of the $1.4 billion bet on the game.
In recent years, sports betting has ballooned in popularity. There has naturally always been a culture of betting on matches in sports, but the industry has benefited tremendously thanks to states legalizing the industry.
The resurgence in sports betting is thanks to the state of New Jersey. Former Governor Chris Christie fought against a 1992 federal law that made sports betting practically illegal in all states except Nevada. The legal fight continued until Governor Phil Murphy, who won the case in the Supreme Court in 2018.
According to American Gaming Association (AGA), 39 states now allow sports betting. New Jersey holds a special place among them, considering the state is home to the gambling capital of the East – Atlantic City. Like Nevada, New Jersey already had a gambling culture.
Between June 2018 and October 2024, more money has been wagered on sports betting in New Jersey than any other state. Since the pandemic, online sports betting has taken the driver’s seat in bringing in an incredible one billion in revenue for commercial gambling bookkeepers.
A portion of those refueling the gambling industry are younger people. The only casinos in New Jersey are located in Atlantic City, and other physical locations to bet on a game are hard to come by. So the convenience of betting online has enticed many.
A number of popular online sports betting sites like DraftKings and Bet MGM advertised during the Super Bowl. Athletes, such as former NBA star Shaquille O’Neal, are familiar faces that now promote these sites.
At the same time, a message from the New York Office of Addiction Services & Supports played during the Super Bowl, asking people to seek help in case of an addiction, a depressing reminder of the nature of gambling.
Former Governor Christie originally fought to legalize sports betting because it was approved of by voters in a referendum. Very few referendums to legalize sports betting in states have failed. Voters have made it clear that they want the option to bet on their favorite teams winning their next game, and states are not against the additional tax revenue that comes from the billions wagered.
This graph comes from the AGA with the data from the New Jersey Division of Gaming Enforcement.
According to the AGA, “Revenue from land-based sports betting is taxed at an effective rate of 9.75 percent, while online sports betting is taxed at 14.25 percent.” For all the states that have legalized sports betting, this is a relatively small amount. A number of states tax sports betting to as much as 50 percent, and all sports betting in the state of Montana is technically state-run.
However, it’s not only final outcomes that are being bet on. The convenience of online sports betting allows fans to bet on more than just the games. It allows fans to bet on the color of Gatorade that will be dumped on the winning coach’s head, to which team a rookie player will be drafted to, to how many injuries a team could suffer in a season, etc, etc.
Online betting gives bettors the ability to gamble on events outside of actual games. Sports bettors can continue to bet on things happening in the sports realms months after the season ends.
This has spawned a new culture around sports betting. It’s centered online and growing in mass. Despite the risks of higher rates of gambling addiction, currently there is no large campaign nationally to ban sports betting again. A common reason given for the ban to be lifted in the first place is that dark web gambling sites were already generating billions. So right now, online sports betting is only expected to grow, soon enough outpacing land-based casino gambling entirely.
