Regulated sports betting has only been legal in the state of New Jersey for a few weeks and Garden State operators are already facing the scourge of legal sportsbooks across the planet, competing with offshore bookies. But New Jersey Division of Gaming Enforcement Director David Rebuck has a plan for dealing with these unauthorized competitors, no matter how well organized and sophisticated they may be.
In a recent interview with Legal Sports Report Rebuck acknowledged what most people probably know already, New Jersey residents have wagering with offshore sportsbooks for a very long time saying:
They (illegal markets) are very robust, they’re very good at what they do, and they’re very successful. They’ll be a significant competitive force to the success of the legal market expanding in the United States.
He went on to suggest that the only state governments can combat this kind of grey market competition is by working together:
I’ve had dialogue with other states already,” Rebuck told LSR. “This is going to be an issue for us to deal with cooperatively. One state can’t do it by itself, one agency can’t do it by itself. Not only as state regulators but we need to be involved with the industry, with law enforcement (local, state, and federal) we need to come up with a new game plan.
What Rebuck really wants to avoid is a protracted legal battle with offshore operators who want access to US markets, the kind that involve the World Trade Organization and that European governments are painfully familiar with. He thinks the solution lies in punishing vendors who do business with both legal and illegal casinos in the hope of inflicting pain on offshore competitors. If he can get national cooperation, he may be on to something. Redbuck and New Jersey may also have stumbled on to a case of, “be careful what you wish for,” as the American regulated sports betting market develops.