Skip to player
Skip to main content
Skip to footer
Search
Connect
Watch fullscreen
Like
Comments
Bookmark
Share
Add to Playlist
Report
BetMGM Layoffs in New Jersey Amid Sports Betting Changes
SportsGrid
Follow
3/7/2025
Category
🥇
Sports
Transcript
Display full video transcript
00:00
Okay, so there's a story up on Legal Sports Report about BetMGM and their company laying
00:06
off employees in New Jersey. If I'm not mistaken, Sam, there was a story that we talked about
00:11
earlier in the week with a potential tax hike in New Jersey as well. So I'm sort of reading
00:17
between the lines here, and I guess you could tell me if I'm wrong. Are they just not happy
00:21
with the revenue that's coming in in New Jersey? And did they just take a big hit when New York
00:25
legalized sports betting? Because I just thought that there was enough money to go around here,
00:29
but it certainly seems like the market is changing in the Garden State. Yeah, you're not
00:36
completely far off, but it's not so direct in terms of, hey, New Jersey is thinking about
00:42
hiking up their tax rate, so we're going to lay off people there. It's sort of symptomatic
00:46
of what every state is doing. It's not just New Jersey who's talking about raising their tax.
00:50
The whole overall environment of sports betting is becoming increasingly more and more expensive,
00:56
and to compete with the top players, you have to spend a lot of money. And the taxes are
01:01
certainly involved in that. A lot of companies are advising that we're going to have an impact
01:05
from the possible tax rates in Illinois, Maryland, New Jersey next year. But this past year was a
01:10
year of investment for a BetMGM. They have about 6.5% of the market, which is third place in the
01:16
country, but it's really nothing compared to FanDuel and DraftKings, which have 77%.
01:20
And their mission is to compete with FanDuel and DraftKings. So in order to do that,
01:24
this past year, they spent almost $300 million on purchasing technology that would essentially
01:30
make their product better to try to compete with those sportsbooks. They spent a lot of money on
01:34
rolling out more features in Nevada, as well as across the country. And also, we've talked about
01:39
it a bunch of times before, it was a really bad NFL season for the sportsbooks. So when you combine
01:44
that along with the tax headwinds, these companies are kind of, investors are telling them, hey,
01:50
maybe we were spending too much money in this past year. You got to look for ways to trim the
01:53
losses. Now, BetMGM has not come out and exactly said why these employees in Jersey City are going
02:00
to get eliminated. I mean, I have to feel for them. There's 83 employees at this office who are going
02:04
to be eliminated, and they don't know when, or they don't know who they are. It's going to happen
02:09
sometime in May. The only reason we know about this is because there was a filing with the
02:12
Department of Labor in the state. But surprising because BetMGM, again, has been one of those
02:17
companies that's been able to spend so much and been able to compete because they have MGM
02:20
Resorts backing them. They have a lot of money. So now that we're seeing one of these very large
02:24
players look for ways to trim losses, especially at their headquarters in New Jersey,
02:29
which was a very big, very big thing when it came out in 2018, very big office, big, you know, drum
02:34
up with the state and everything. It's definitely concerning. So definitely have to feel for these
02:38
employees and figure out how BetMGM is going to kind of try to reverse course going forward with
02:42
all these losses.
Recommended
2:26
|
Up next
New Jersey Considers Doubling Sports Betting Tax Rate
SportsGrid
3/5/2025
2:14
New Jersey Sports Betting Sees 16% Decline in September
SportsGrid
10/24/2024
1:29
Changes in College Sports Betting Laws in the United States
SportsGrid
7/3/2024
3:20
DC Sports Betting Market Overhaul Amid New Regulations
SportsGrid
7/18/2024
3:11
Bet365 Fined Again in NJ for Unauthorized Bet Changes
SportsGrid
9/11/2024
3:20
New Mississippi Sports Betting Bill Aims for Online Shift
SportsGrid
1/20/2025
3:42
New SAFE Bet Act Aims to Regulate AI in Sports Betting
SportsGrid
9/18/2024
2:48
Sports Betting Verbage Continues To Be Tweaked In The United States
SportsGrid
6/5/2023
3:11
New Jersey Moves to Ban College Athlete Betting Props
SportsGrid
4/18/2024
1:57
Latest Update On Sports Betting Legalization In Maine
SportsGrid
6/30/2023
2:38
Connecticut Sports Betting Laws: Analyzing Proposed Changes
SportsGrid
1/22/2025
3:02
Latest Update On California Sports Betting
SportsGrid
5/4/2022
2:58
Latest Update on Sports Betting Legalization in Minnesota
SportsGrid
2/21/2024
1:35
Nebraska Explores Online Sports Betting Amid Tax Talks
SportsGrid
8/14/2024
2:59
Updates on California Sports Betting Operator Comments
SportsGrid
4/16/2024
2:36
New York's Stance on Sweepstakes and Sports Betting Laws
SportsGrid
3/21/2025
2:37
New NY Law Codifies Permanent Sports Betting Ad Rules
SportsGrid
10/8/2024
3:22
Minnesota's New Sports Betting Bill Targets Responsible Gaming
SportsGrid
12/2/2024
2:01
Bally Bet's Massachusetts Launch & Sports Betting Market Impact
SportsGrid
7/1/2024
3:27
Mississippi's Online Sports Betting Bill Moves Forward
SportsGrid
2/3/2025
2:16
Mississippi's Struggle to Legalize Online Sports Betting
SportsGrid
3/7/2025
3:09
Maryland Sets Latest Trend with Sports Betting Tax Hike
SportsGrid
5/28/2025
2:23
Michigan Issues New Cease Orders to Offshore Sportsbooks
SportsGrid
2/15/2025
1:58
Fanatics Launches Sports Betting in Connecticut Market
SportsGrid
12/4/2023
3:01
Mississippi Struggles to Legalize Online Sports Betting
SportsGrid
4/2/2025