iDEA Growth Releases New Research that Proves Online Gaming Revenue & Jobs Continue to Increase Annually

WASHINGTON, Dec. 10, 2019 /PRNewswire/ -- iDEA Growth released new a report today, the Economic Impact of New Jersey Online Gaming, that demonstrates the continued growth of mobile gaming over six years through additional revenue, jobs, wages and consumer protections. The New Jersey model serves as an example to states seeking to legalize mobile gaming and betting. The top three takeaways from the research are:

• Revenue: Since its first full year of operations, online gaming Gross Gaming Revenue (GGR) has grown at a compound annual growth rate of 24.8%.
• Jobs: 6,552 jobs were created from late 2013 through 2018.
• Consumer protection: New Jersey's legalization of online gaming brought a longstanding offshore industry onshore from a gray market into a safe and structured environment.

"The results of this report demonstrate the economic, regulatory and consumer safeguard wins that mobile gaming and betting offers a state. 80% of sports betting wagers are already placed on mobile devices or online. When bets are done legally and in the proper regulatory framework, everyone wins," said Jeff Ifrah, founder of iDEA Growth. "For the many states considering whether to legalize mobile betting and gaming, the question to ask is what could your state do with more tax dollars? The additional revenue gained from mobile gaming can be earmarked for important state initiatives."

The research, which was commissioned by iDEA Growth and conducted by Meister Economic Consulting and Victor-Strategies, covers New Jersey's online gaming market since its inception in 2013 through September 2019. New Jersey is the most successful business model of the four states where online gaming is currently in operation in the U.S. The report covers overall market performance, Gross Gaming Revenue (GGR), tax revenue, jobs, wages, sports betting, land-based casinos, regulation and predictions for the full 2019 year. The executive summary and full research report can be found at https://ideagrowth.org/research/ for download. Specific results are as follows:

Growth + Gross Gaming Revenue (GGR)

• Since 2014, the first full year of operation, online gaming GGR has grown at compound annual rate of 24.8%.
• 2018 GGR is $299.1 million; a 21.6% increase over previous year.
• Through September 2019, GGR totaled $339 million.
• GGR for 2019 is projected to total $452 million, a 51% increase from 2018.

Tax Revenue

• State and local tax revenues in New Jersey are multiplied by legalized gaming.
• State and local taxes in 2018 were significant at $52.3 million, including approximately $44.9 million to the state and $7.5 million locally via the Casino Reinvestment Development Authority (CRDA). This is a 21.6% increase over 2017.

Jobs & Wages

From inception in late 2013 through calendar year 2018, New Jersey online gaming has directly and indirectly generated:

• $2.0 billion in output (i.e., value of sales);
• 6,552 jobs (i.e., full-time equivalents);
• $401.0 million in wages to employees; and
• $259.3 million in tax revenue to state and local governments (including $178.9 million in online gaming taxes).
• In 2018 alone, the operation of online gaming (excluding investments) generated:
• $553.6 million in output;
• 1,851 jobs;
• $104.8 million in wages to employees; and
• $74.4 million in tax revenue to state and local governments (including $52.3 million in online gaming taxes).

Consumer Protections Through Regulation

• New Jersey's legalization of online gaming brought a longstanding offshore industry onshore from a gray market into a safe and structured environment.
• Innovative technology provides safeguards to online gaming consumers while protecting against fraud, underage gambling, and money laundering.
• New Jersey's regulatory authority has required operators to record every gaming transaction and every financial transaction generated by their players.

Online Gaming & Land-Based Casinos

• Online gaming is complementary to the land-based casino business as a percentage of land-based revenue is from online gaming.
• Online gaming revenue percentages in land-based casinos have tripled in the past three years.
• Based on current trajectory in 2019 from September, New Jersey's gaming industry will generate over $3 billion in GGR.

Sports Betting

• Sports betting boosts casino gaming revenue.

Lessons for Other States

• New Jersey is a model for how other states can implement, oversee, and realize the benefits of responsible, regulated online gaming.
• Online gaming is a safe bet for state economies.

iDEA Growth (iDevelopment and Economic Association) is a 501(c)(6) association which seeks to grow jobs and expand the online interactive gaming business in the United States through advocacy and education.

We represent all sectors involved in the growing industry of internet gaming and entertainment, including operations, development, technology, marketing, payment processing, and law.

Meister Economic Consulting is an economic consulting firm that specializes in the application of economic research and analysis to litigation, regulatory, public policy, business development and operations, and economic development matters. We have a reputation for objective, insightful, comprehensive, high-quality research and analysis. Our work is grounded in sound economic and financial theory, guided by extensive industry knowledge, supported by relevant data and market research, and customized to the circumstances of each matter.

Victor-Strategies is a unique professional firm providing expert advisory services and critical business insights to the gaming industry, with a particular focus on new gaming technologies. We are dedicated to providing governments and industry leaders with the strategies, tools, data, and expertise essential for informed decision-making and effective operations. Victor-Strategies offers expert advisory services and the highest quality research and analysis capabilities to be found in the gaming industry.

SOURCE iDEA Growth

Related Links

https://ideagrowth.org