New Jersey became the first US state to legalize online and mobile sports wagering back in 2018. It followed NJ state winning a lengthy Supreme Court battle that resulted in the PASPA (federal ban on sports betting) being lifted.
This made the Garden State something of a trailblazer for online sports betting, as there are now 38 US states with some form of legalized sports wagering. More states may follow suit in 2025, and you can get updates at Deadspin.com.
As well as on online platforms, NJ residents can also place sports bets in person at retail sportsbooks inside and at race tracks. Moreover, New Jersey is one of just a handful of states with legal online casinos and poker rooms.
But what do US bettors prefer; online or traditional bookmakers? Using NJ as our focal point, we’ll take a look at offline and online betting trends in the modern era.
90% of sports betting is online in NJ
As several sources have reported since the summer of 2024, an estimated 90% of total sports bets in New Jersey are placed online. To give you the most recent figures available, the monthly online wagering gross revenue in NJ was $3,877,432. For comparison, the same figure for traditional retail sports wagering revenue was just $36,274.
If we look at nationwide figures in the US, 29.2 million Americans placed an online sports bet in 2023 according to Statista. We don’t yet have the numbers for 2024, but the figure is projected to rise to around 36.9 million online sports bettors in 2025.
In terms of revenue, the online sports betting market in the US is expected to reach $17.23 billion in 2025. This is with a forecasted annual growth rate of 8.41%
Five reasons why bettors are moving online
The data is pretty conclusive; the overwhelming majority of NJ and US bettors prefer placing their wagers online rather than in person. But why is this the case? Here are five of the main reasons why US bettors prefer online and mobile wagers:
- Convenience
In a 2023 survey in the US, 77.5% of all respondents said that convenience was their main reason for choosing mobile and/or online sportsbooks over traditional retail outlets. By comparison, only 25.4% said they like placing bets in person (either some or all of the time).
- Proximity
This ties in with convenience, but just over 21% of respondents to the aforementioned survey cited the fact that online betting was their only option due to the lack of a retail sportsbook within local proximity.
- Promotions
Especially in states like New Jersey, where there are 23 legal online sportsbooks and therefore plenty of competition, bonuses are a big draw for online bettors. Every single one of the 23 legal NJ sportsbooks has a welcome bonus, as well as loyalty programs and other promotions to keep their online patrons coming back.
- Live betting
A big part of the evolution of sports betting online has been the rise in popularity of live or in-play betting. This involves placing wagers while the game is happening in real-time, something that is much easier and quicker to offer via a mobile betting app or website compared to doing it in person.
- Variety
The final reason why most Americans prefer betting online is because of the variety and choice. Unless you live close to Atlantic City, chances are you only have one or two retail sportsbooks nearby (or zero, as is the case for many). Online, on the other hand, there are 23 legal sportsbooks to choose from in the Garden State.
What the future holds for in-person sports betting
Given the massive shift towards online sports wagering, you could be forgiven for thinking that traditional sportsbooks could be on their way out. However, that might not necessarily be the case.
Retail sportsbooks at casinos still posting good numbers
According to NJ gambling law and the DGE licensing rules, an online sportsbook or casino must be partnered with a retail casino or sportsbook. The same is true for the vast majority of the 38 US states with legalized mobile sports wagering.
Most NJ online sportsbooks and casinos are partnered with an Atlantic City casino, where they also house an in-person sports betting retail unit. Despite a 1.3% decline in Q2 of 2024 compared to 2023, all nine Atlantic City casinos were profitable. Since there’s still foot traffic and money being spent, it’s hard to see the sportsbooks disappearing from these casino resorts.
Racetrack betting is in decline
While things are still relatively positive for retail sportsbooks at online casinos, the same sadly can’t be said for racetracks. Following a rapid decline in numbers, the Freehold Raceway in New Jersey closed its doors after 170 years. In doing so, it became the third NJ racetrack to close since 2001.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.