Internet gambling started 10 years ago in New Jersey. The original renewal bill would have extended it for 10 more years. Changes to the bill earlier in the week have not been received favorably. A New Jersey General Assembly Committee recently made changes to the renewal period for internet gaming from 10 years to two years.
Change is denounced
Southern New Jersey’s Chamber of Commerce immediately denounced the change. Christina Renna, CEO and president, said the change was made without warning or explanation. The legislation would have extended online gaming till 2033. An amendment was proposed to change reauthorization to end in 2025. Lawmakers didn’t give reasons for shortening the extension.
New Jersey online casinos have been making money for the state. The state collected almost $250 million in taxes in 2022. To operate under the current law, an online casino must be affiliated with a land-based casino in New Jersey. This continues to be a requirement under the proposed renewal legislation.
Extension set for five years
Following pushback, the extension was set the next day at five years. This easily passed the Assembly and the Senate.
Industry experts and trade associations feel that reducing the time from 10 to five years is the wrong way to go. They see a full 10-year extension as vital to the continued success of casinos. The belief is that reducing the time sends the wrong message about the future of online casinos in New Jersey.
Atlantic City casinos and political officials have been speculating about the move made by the Legislature. They believe it could create leverage against the city to possibly raise taxes the state collects from gambling in the future. At present, the rate is 8% on in-person winnings at land-based casinos and 15% from internet gambling. For online sports betting the rate is 13%.
November 2023 deadline
The bill approved by the State Legislature will extend online gambling until 2028. It is now in the hands of the democratic governor, Phil Murphy, for further action. It will be reviewed by the Senate’s budget committee. The bill must be adopted by the November 2023 deadline to ensure uninterrupted online casino gambling until 2028.
Growing iGaming market
With the iGaming market growing in leaps and bounds, it has become a great source of income for the state of New Jersey. It is one of the most mature online gambling markets in the U.S. The iGaming sector brought in $1.66 billion in revenue in 2022 and is on track to bring in more this year. It is not even halfway through the year and revenue currently stands at $1.34 billion.
