New Jersey to Extend Online Gambling For Five Years

After the move to drastically cut online casino gambling in the state, New Jersey legislators has recently proposed that internet gambling take place for at least five more years. As Associated Press reports, the original bill to re-authorize internet wagering for another 10 years was cut down to only two years in the latest session of the state lawmakers and then proposed for an at least five-year extension a day later.

Bill Proposal Amended:

According to Associated Press, the initially proposed reduction of the original bill to two year authorizations made casinos and other interest groups from southern New Jersey strongly asking for a further consideration of the proposal. Their outcry resulted in another amendment of the bill and a proposal to extend online betting for five years.

Five-Year Extension:

The reason for the original change reportedly remained unknown. As Associated Press reports, the Chamber of Commerce of Southern New Jersey supported the latest change and reportedly said that it “is incredibly pleased that the General Assembly shifted away from a drastic and unexpected two-year internet gaming re-authorization through 2028.”

The business group reportedly added: ”Although not the 10-year window the bill’s sponsor originally intended, this adjustment still allows for the sports betting industry to grow and thrive in New Jersey with a five-year security in its operating ability.”

Tax Policy Pressure:

The same source reports that there was some speculation among the Atlantic City casino industry officials and politicians that the move to amend the original bill and its 10-year extended gaming authorizations may represent a form of pressure to increase tax revenues in the state. Reportedly, gaming tax rates currently stand at 8% for land-based casinos, 13% for online sports wagering, and 15% for online gambling.

Mark Giannantonio, president of Resorts casino and of the Casino Association of New Jersey, reportedly said that the 10-year extension is vital for the industry’s operations. “The re-authorization of the internet gaming bill for 10 years is vital to the continued success of the gaming industry in New Jersey and the programs that are supported by the taxes collected,” he reportedly said.

Don Guardian, a Republican Assemblyman and former mayor of Atlantic City, reportedly commented: “No one is going to invest money in a company that has (an internet gambling identity) if you only have two more years. Those things cost money. This has been what’s helping keep Atlantic City alive.”

Associated Press also reports that Atlantic City’s casinos and online operators have generated $6.29 billion in revenues since the 2013 launch of online wagering excluding sports betting. The source reports that it helped Atlantic City’s casinos operate during Covid 19-related restrictions.