C
ollegiate level sports betting on events that are held in New Jersey has been rejected after 57% of voters said no to a ballot question on amending the state constitution to expand restrictive college sports betting law, as reported by the Associated Press.
Even though collegiate athletic events held in New Jersey will remain off-limits, voters green-lit a ballot measure Tuesday that allows nonprofits to use money they collect from games of chance such as raffles and bingo to support their operations. That question was approved 64% to 36%. So far, nonprofits could only use such revenue in limited ways, such as for educational or religious purposes. This measure was intended to support organizations hit financially by the pandemic, and the people who work for them.
The ballot issue posed to voters on Tuesday regarding collegiate level sports betting read as follows: “Do you approve amending the Constitution to permit wagering through casinos and current or former horse racetracks on all college sport or athletic events? Currently, wagering is prohibited on college sport or athletic events that take place in New Jersey. Wagering is also prohibited on an event in which a team from a New Jersey college participates“.
Currently, New Jersey only allows people to bet on college athletic events held outside the state, under a law signed in 2018, which permits betting in racetracks and casinos. Since then, the state has broken national records with its sports betting market, becoming the first state to take more than $1 billion worth of wagers in a month on sports games in September.
However, New Jersey has some of the strictest college sports betting rules in the country, in contrast with other 13 states that do not have any restrictions. College betting was not included in its original 2011 referendum because lawmakers were concerned that student athletes would fix or throw games.
The ballot measure change could have been a radical game changer. The vast majority of bets are placed using online books, which comes with a 13% tax rate compared to 8.5% for in-person wagers. While the nonpartisan Office of Legislative Services estimated the change would have boosted deposits to the state budget, local governments and the Casino Reinvestment Development Authority, the office could not predict the exact amount.
The amendment would have allowed betting on college teams and events in New Jersey, from Rutgers University football games to Seton Hall basketball games and any other NCAA event held in the state, such as March Madness tournament games at the Prudential Center in Newark.
