A new study reveals that the gambling boom in New Jersey, particularly in sports betting and internet gambling, has led to record revenues but also significant downsides.
While the state earned substantial tax revenue, economists caution that the social costs, including higher problem gambling rates, could outweigh the benefits.
The surge in digital gambling has led to a drop in jobs and wages, resulting in a decrease in economic activity. (Trending: Sports Icon Dies Suddenly At 56)
According to The Guardian, “New Jersey, which led the charge for mobile sports betting’s legalization, has received hundreds of millions of dollars in taxes from the sector. But economists cautioned that the cost of higher problem gambling rates could be ‘roughly equal’ to the state’s takings.”
“The online gambling sector paid some $110m in wages to New Jersey employees in 2022, according to NERA, generating $22m in new spending across the state’s economy. Had another recreational activity attracted the same $2.4bn, NERA projected this would have led to about $1bn in wages, generating $200m in new spending,” continued the outlet.
Derek Webb, founder of the Campaign for Fairer Gambling, said, “America’s Gambling gold rush got out of hand quickly because the debate has been dominated by advocates for unfettered proliferation.”
The study suggests that the money spent on gambling could have been more beneficial if directed towards other economic activities.
The findings are likely to prompt scrutiny of legalized gambling proposals in other parts of the country.
Additionally, the social costs of problematic gambling, such as healthcare, welfare, and criminal justice, could outweigh the increase in tax revenue.
The study highlights the need for a more thorough evaluation of the impact of online gambling.
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