The two Midwest states both passed restrictions last year requiring in-person registration for a period of time. Gouker added that other states considering taking up sports betting, including Illinois and Iowa, have made it much harder to generate revenue because of barriers to online wagers. Pennsylvania and West Virginia also allow legalized online sports betting, but neither has fully launched yet as they iron out complexities with vendors. Geolocation systems on computers and smartphones are intended to prevent gamblers from placing bets outside the state they are in.

'The evidence strongly suggests Nevada and New Jersey are collecting the most tax revenue from sports gambling because they allowed widespread online gambling and the other states did not,' according to a May report by the Urban Institute. “Any state that thinks it's going to capture meaningful revenue via land-based sports betting only is going to be sorely mistaken,” he said. In May, gamblers in New Jersey bet more than $263.5 million on sports online, and less than $55.4 million in person, according to the monthly Division of Gaming Enforcement report. He said online bets have accounted for around 75% to 80% of all wagers in most months. “The entire reason that New Jersey has fared better than other states has to do with the availability of and access to online and mobile betting,” said Dustin Gouker, lead sports betting analyst for Play NJ, an online guide to New Jersey's internet gambling sites. The southern states of Mississippi and West Virginia received revenues of $25 million and $10 million, respectively, through April 30 after legalizing sports wagering last summer. Neighboring Pennsylvania netted $242.4 million of sports betting revenue five months after debuting legalized wagers in November, while Rhode Island reported just $1.8 million in that same time frame. Delaware rolled out sports betting the same month as New Jersey, but through April had only reported $13.7 million of taxable revenue.

Sports betting vendors nj