States clamoring to legalize gambling may want to be careful about what they wish for.
In New Jersey, the state that sparked the new wave of sports betting, sports books lost $4.5 million on the Super Bowl, according to ESPN.com. The losses resulted from heavy betting on the Patriots, who were favored to win by 2.5 points.
Nevada sports books came out $10.7 million ahead for the Super Bowl, in part because betting on the Patriots happened less frequently in a state far closer to California. Also, the money made in Nevada came in large part from futures bets on the odds to win the Super Bowl and from prop bets.
But shed no tears for New Jersey. In the first six months of legalized sports wagering, New Jersey sports books made $72 million. Which underscores the reality that sports books aren’t sweating a short-term hiccup, because the house always wins over the long haul. A periodic blip often makes gamblers think they can win when, in reality, any short-term bumps eventually will be offset by losses, and then some.