A bill that aims to lift a ban on New Jersey casino owners who also own an interest in a sport to accept bets on that sport has recently been introduced in the state Legislature. If the piece gains traction in both the state Assembly and Senate, it would pave the way for Golden Nugget Atlantic City to finally be able to handle action on professional basketball.
The Marina District hotel and casino resort started taking sports betting action in August 2018 at a temporary sportsbook. It went live with digital betting a week after its in-person wagering debut.
However, Golden Nugget has been unable to take bets on NBA games due to the above-mentioned ban. The resort, just as its sister properties in Nevada, is owned by Texas billionaire Tilman Fertitta, who also happens to be majority owner of NBA’s Houston Rockets.
A5463, introduced recently in the New Jersey General Assembly, would allow:
owner of 10 percent or more of member team of sports governing body to place or accept wagers on certain sports events in which other member teams participate.
This means that if the bill survives in the Legislature, it would allow Golden Nugget, which is currently the only property affected by the existing ban, to take bets on NBA games that do not involve the Houston Rockets.
The piece of legislation was assigned to the Assembly Appropriations Committee, which held a hearing on it on Tuesday. A companion piece has been introduced in the Senate and has been referred to the State Government, Wagering, Tourism & Historic Preservation Committee for a review.
Ban Hits Betting Revenue?
While Golden Nugget entered the New Jersey sports betting market shortly after the legalization of the practice in the state, the property’s wagering operation has been lagging behind its competitors in the space.
According to information from the New Jersey Division of Gaming Enforcement, Golden Nugget generated betting revenue of $162,838 in the period between January and May, less than any other provider of sports betting in the state. In comparison, Meadowlands Racetrack in East Rutherford recorded $53.4 million in wagering revenue during the same period.
Golden Nugget being unable to take NBA betting action has certainly played an important role in its performance in the market. According to the latest industry stats, basketball accounted for more than a third of all bets handled by the state’s sportsbooks during the first five months of the year.
Bettors wagered more than $632 million on basketball games, and while most of those wagers were on the NCAA March Madness, which Golden Nugget is permitted to accept bets on, the figure above shows just how big basketball is in New Jersey.
The blanket ban on NBA games was not even the worst-case scenario for Golden Nugget. New Jersey lawmakers originally proposed last year that properties whose owners had any interest in a sport, including ownership of a sports franchise, should be banned from taking any sports betting action.
Golden Nugget pleaded heavily with legislators to remove that restriction. They scored a partial victory last year, and it is yet to be seen whether the current NBA ban would be relaxed.
In Nevada, Golden Nugget properties are allowed to take bets on NBA action that does not include the Houston Rockets. If the recently introduced bill succeeds in the New Jersey Legislature, the same rule would apply to Golden Nugget Atlantic City.
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