They claimed he placed a moneyline wager on the outcome of game, Bengals at +170. If that counts as “insurance”, I’m not sure how well regulated either the insurance business or the casino business really is.
This is more or less the reason pari-mutuel betting was (re)legalized in Texas. Everyone was simply driving across the border to Lousiana, and the state finally got tired of losing all that money.
Although there are four bridges connecting New York and New Jersey, I suspect they draw very little foot traffic. Empire State bettors would be more likely to reach New Jersey via the PATH train, which offers outstanding service at a reasonable sum from various points in lower Manhattan. I suppose you could always drive across the George Washington Bridge and gamble on its being open.