Answer:
The argument seems logical but...
Step-by-step explanation:
In population there is not much difference between New Jersey (9 million) and Georgia (10 million) but I guess in average income there is, and quite a big one too.
We also have to take into account that a state that legalizes sports betting will attract many people in the beginning (because of the novelty) and, more to the point, that probably a lot of these people making sports bets are not residents of New Jersey.
A more ethical argument would be to prove that legalizing sports bets is indeed an effective way to stop the ilegal sports betting.