Paddy Power Betfair wins New Jersey gambling boost

New Jersey is close to legalising sports betting in a move likely to benefit Irish gambling giant, Paddy Power Betfair, which already has a deal to provide the facility in the US state.

The US Supreme Court recently shot down a federal law barring individual states outside Nevada and a handful of others from legalising betting on sports such as football, baseball and basketball.

New Jersey's legislature passed a law legalising and regulating sports betting late on Thursday. It now goes to the state senate and ultimately to governor, Phil Murphy.

Paddy Power Betfair confirmed on Friday that it has signed deals to provide mobile and online sports betting with the state’s Meadowlands racetrack and Tioga Downs Casino in New York.

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Under the deal’s terms, Betfair US will offer customers in both states sports betting “pending legislative and regulatory authorisation”.

Kip Levin, chief executive of Betfair US said that Meadowlands had the potential to be among the best sports betting venues in the US.

Paddy Power Betfair already has businesses in New Jersey: a partnership with a local casino and a horserace betting exchange. It also owns US horseracing channel, TVG.

New York next

David Jennings and Joseph Quinn, analysts with Dublin stockbroker, Davy, point out in a note on the deal that New York and New Jersey have a combined population of 29 million.

“These two markets are likely to be among the first to regulate sports betting,” they say. “We expect sports betting in New Jersey to be up and running within a couple of months.”

They add that sports betting could be up and running in New York at some point next year.

New Jersey is likely to impose a 17 per cent tax on sports betting revenues while New York will ask for 8.5 per cent.

Many US states are keen to legalise sports betting because it offers a new source of tax revenue.

Dublin-based Paddy Power Betfair’s existing US businesses generate €140 million a year.