New Jersey online sports betting laws

New Jersey became the first state to legalize online sports betting in the United States ( P.L. 2018, c. 33. ) after the US Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA), welcoming a new era of New Jersey online sports betting.

The state has legalized sports betting via casinos, but also, more conveniently, online sports betting too. In January 2021, The Department of Gaming Enforcement (DGE) announced that in December 2020 , New Jersey set a record in betting volume for a single state in a single month with a total handle of $996.3 million – with more than $929 million of that being bet online.

Due to the fact that remote registration is approved in New Jersey, bettors can register new accounts and fund their bankrolls entirely remotely. Unlike in some other states with legal online betting, New Jersey sports bettors are not required to visit a casino or retail sportsbook to verify their account.

Having said that, New Jersey betting sites are required to confirm your location every time you attempt to place a bet. Therefore, geolocation software must be used to confirm that you’re within state lines. The majority of betting apps have this functionality built-in so customers don’t need to do anything, regardless of the device you’re wagering from, but those betting from a computer may need to download the software directly from their sportsbook.

Another highlight of sports betting in New Jersey is that you do not need to be a state resident to bet online there. As long as you are physically located in New Jersey, you can place a bet. For example, bettors in New York City who have easy access to NJ, can bet from their smartphones when they’re within state lines.

The Garden State is celebrated for the large amount of choice it gives bettors. New Jersey allows all existing casinos and racetracks to apply for a license to offer both online and in-person retail sports betting.

To provide online sports betting, however, operators require a licensed retail partner with a physical presence in the state. Each casino and racetrack can partner with up to three different online sportsbooks with a single license, while online sportsbooks can also partner with more than one license holder.

This licensing structure has allowed for a large number of online operators to enter the New Jersey sports betting market, ensuring a huge selection of providers and offers to choose from, including DraftKings, BetMGM, FOX Bet, PointsBet, and William Hill.

This is also good news for the state, as it can generate more tax revenue and money from licensing.

Yes, if you win money from sports betting, you are required to pay taxes on those winnings as you would on other forms of gambling.

According to the IRS , gambling winnings in any US state, including New Jersey, “are fully taxable and you must report the income on your tax return. Gambling income includes but isn’t limited to winnings from lotteries, raffles, horse races, and casinos.” Although sports betting isn’t explicitly mentioned, it’s widely accepted as part of this list.

The minimum age for New Jersey sports betting, either in person or online, is 21. New Jersey sports betting sites are required by law to verify your age and identity upon presentation of a government-issued ID or by using software approved by the Division of Gaming Enforcement.

All licensed New Jersey betting sites require you to be physically present within state lines to place a bet online.

Sports betting apps will verify your location via your device’s geolocation, however, if you bet on a laptop or desktop computer, you’ll need to download approved geo-comply software provided by your online sportsbook.

Individuals who own a stake of ten percent or more in any team or sports governing organization are prohibited from wagering on that specific sport. In addition, all employees of such organizations must register with the DGE before placing any sports wagers.

College sports are huge in NJ, but books cannot offer odds on any college sports events that take place in the state of New Jersey or involve a team representing a college or university from the state.

US citizens cannot legally bet on politics, regardless of whether the odds are provided for elections and/or events abroad. No sportsbook regulated by official US regulators is allowed to offer political betting odds.