The future of online casino platforms in New Jersey hangs in the balance as their authorization is set to expire in November. The state lawmakers took action to extend iGaming, and this saved the iGaming industry from going offline come November 27, 2023.
At first, the industry was nervous whether the bill would be passed to extend the iGaming law. Senate Bill 3075 and Assembly Bill 2190 were introduced last year and have resurfaced recently. Originally, these legislative clones aimed to extend online casino gambling in New Jersey by a decade, until November 2033.
If passed, the legislation would amend the state’s iGaming law, allowing online gambling to continue for 20 years following the initial launch of online casinos in 2013. The clock is ticking for lawmakers in Trenton to ensure the uninterrupted operation of the state’s online gaming industry.
What the Senate Bill 3075 holds
Senate Bill 3075, introduced by Senators James Beach and Vincent Polistina, has cleared the Senate Budget and Appropriations Committee. However, both SB 3075 and AB 2190 must go through committee considerations in their respective chambers before receiving full votes.
While there appears to be little opposition to extending iGaming, the Assembly version has undergone an amendment by the Budget Committee. The extension period was reduced from 10 years to just two years. Despite this change, AB 2190 has garnered support in four Assembly committees.
But this put another level of anxiety for the state’s industry. Many claim that this was a bad move, and could hinder revenues from the industry. The bill could have not been a problem but it looks like the online casino sites would have to find their way to being legalized again in two years time.
New Jersey’s iGaming industry–is it worth it?
New Jersey’s online casinos have been a lucrative revenue channel for Atlantic City establishments. Since their inception, these iGaming sites have generated nearly $6.3 billion in gross gaming revenue (GGR). The industry has experienced exponential growth over the past five years and witnessed a significant surge during the COVID-19 pandemic.
Although online gaming revenue is shared with third-party operators like DraftKings, the state still benefits from substantial tax receipts. Online gaming is taxed at a higher rate compared to land-based casinos, with 17.5% of iGaming GGR allocated for taxes. Of this, 15% goes to Trenton, while 2.5% is earmarked for community investments.
In 2022 alone, New Jersey received $249.4 million in tax receipts from iGaming and $179.1 million from physical casinos. The online gaming industry has proven to be a valuable asset for the state, even if Atlantic City casinos have their reservations about the revenue split. Like with many other states, it has been pumping the state’s economy with less capital needed. Online casinos in general do not have to spend so much capital in state grounds to operate.
As the deadline approaches, all eyes are on New Jersey’s lawmakers. Will they take action to extend online casino platforms, ensuring the continuation of iGaming in the state? The clock is ticking, and the fate of online gambling in New Jersey hangs in the balance.
For more up-to-date news and features on gambling and iGaming industry, please visit our Casino News and Features at Crypto Club Site.
