A History of Gambling in New Jersey

Life

A History of Gambling in New Jersey

Life

A night view of Atlantic City from the beach.

A History of Gambling in New Jersey

Life

A night view of Atlantic City from the beach.

The Garden State of New Jersey is renowned for being one of the biggest gambling states in the US. Of course, the home of New Jersey gambling is undoubtedly Atlantic City, which has been a casino resort town for decades and attracts visitors from across the country.

Not only are some of the best casino table games and slot machines found in New Jersey, but it was also instrumental in helping to overturn the harsh laws around sports betting within the US. Few states located outside of Nevada have such a rich tapestry of gambling history woven through its story and players can now enjoy all forms of online casino games, brick-and-mortar casinos and legal sports betting inside these state lines.

It hasn’t always been this way for one of the country’s gambling hot spots. Let’s take a closer look at New Jersey’s history with gambling.

Early days

A racetrack at a racecourse in the early morning light.

We have to go all the way back to the 1700s to get a glimpse of the first form of gambling that took place in New Jersey. This is the time when lotteries were introduced into the state in a bid to finance the military as they fought in the French and Indian wars, as well as the American Revolution. In fact, both Princeton and Rutgers Universities were also benefactors of the lottery system during the 1700s. All lotteries were banned in 1844 by the state.

The Freehold Raceway is also found in New Jersey and is the oldest racecourse in the country, having been founded in the 1830s. The track allowed horse race betting and soon added dog racing to the mix. Although all pari-mutuel gambling was banned in 1894, and all gambling was banned in 1897, the track somehow managed to continue running and betting took place per usual, as you’ll see below.

A Prohibition playground

At the heart of it, New Jersey was an agricultural-based economy, but Atlantic City contributed handsomely to the state’s coffers through its popularity as a tourist destination. Of course, most people expect a couple of vices during their vacations and in Atlantic City, gambling was the main draw.

Although a gambling ban had been in place from the late 1800s, the practice continued unabated, if in a rather less noticeable manner at a minimum. Bingo games were still prolific at this time, and sports betting continued as normal at the Freehold Racetrack.

Of course, in 1920 the Prohibition Act became a huge threat to the gambling lifestyle of the city, as tourists enjoyed a drink while they played. Luckily for Atlantic City, their proximity to the ocean and the beachfront docks allowed access to notorious rumrunners that could bring all sorts of alcohol onto shore to be enjoyed at restaurants, hotels and casinos.

One character that certainly helped Atlantic City stay afloat during the gambling ban and prohibition was Enoch L. “Nucky” Johnson. Although his character may have been of slight disrepute, he became the leader of the Atlantic County Republican Executive committee and gained control of the Republican-led Atlantic City and Atlantic County governments in the early 1900s.

Johnson turned a blind eye and greased his palms with bribes from establishments buying and selling illegal alcohol, construction and illegal gambling outfits, to name just a few. He was eventually convicted on tax evasion charges in 1941, by which time the prohibition had ended and the United States was about to enter WW2.

After-war slump

Of course, the world was changed by WW2 and Atlantic City’s popularity as a tourist destination hit an all-time low. The economy was in tatters, crime and unemployment were up and many of the city’s hotels and casinos were shut down or repurposed. 

Racetrack gambling had been made legal again in 1938, and in 1953, nonprofit bingo games and raffles were once again legalized within New Jersey – these were some of the ways that Atlantic City managed to survive the postwar slump.

Gambling is legalized in Atlantic City

An aerial view of Atlantic City’s boardwalk.

Casino gambling was on track to be legalized in New Jersey in 1974, however, the bill was struck down by voters all over the state. So, two years later, a new referendum that applied solely to Atlantic City was drafted and the vote was successful. In 1978, the Resorts Atlantic City became the very first legal casino outside of Nevada to open its doors.

Of course, this led to a huge boom in tourism for the state, with people traveling from up and down the East Coast to take advantage of the new gambling laws. 

The years between 1980 to 2000 saw a massive boom in casino construction and revenue in Atlantic City and New Jersey benefited massively. At this time, the Trump Empire was solidified with five casinos in the city by the 1990s.

Borgata brought Vegas to New Jersey

Borgata Hotel Casino & Spa opened in July 2003 and it brought a Las Vegas-style of luxury, gambling and entertainment to New Jersey. Unlike many of its competitors that jammed as many slot machines as possible onto their floor, Borgata created a space with 200 table games and a 34-table poker room. It also came with an incredible nightlife scene and world-class restaurants that hadn’t been seen before and which keep the establishment at the top of New Jersey’s entertainment resorts to this day.

The fight for online casino games

A man sports betting on his phone and laptop.

Of course, online gambling and sports betting, in particular, were still illegal in most of the country’s states. The PASPA (The Professional and Amateur Sports Protection Act) federal law, passed in 1992, effectively outlawed sports betting in most states across the US.

New Jersey was the first state in the country to push to legalize online gambling, which they managed to do in 2013, and it was instrumental in the Supreme Court ruling that overturned the PASPA 1992 law and allowed sports betting from 2018. 

As you can see, New Jersey has a long and rich history with gambling and luckily now the state can legally rely on online slots and other online casino games, sports betting and in-person gambling to contribute handsomely to its coffers.

Enjoy gambling in New Jersey with Borgata Online

Borgata is proud to have played a part in the history of gambling in New Jersey and we continue to set the tone as casino industry leaders throughout the state. Whether you’re looking for a simple game at the online slot machines, live dealer casino games or a spot of world-class entertainment and gambling on your vacation, we’ve got you covered. 

Register with Borgata Online Casino or play live at our world-famous Borgata Hotel Casino & Spa.