New Jersey extends internet gambling for five years

New Jersey will continue to be a hub for internet gambling for the next five years, as proposed by state lawmakers. This decision comes after a brief period of uncertainty when legislators initially intended to limit the extension of online casino gambling to just two years. However, due to strong opposition from local casinos, and politicians in favour of regulating online gambling, the bill was amended once again to allow for a five-year extension.

No explanation has been provided by Democratic politicians in the State. The reasoning behind the original change and its subsequent modification remains unknown.

Five-year extension instead of 10 years

We’re all trying to figure out what happened,” Don Guardian, former mayor of Atlantic City

The Chamber of Commerce of Southern New Jersey welcomed the latest change, commending the shift away from the initial two-year extension. The Chamber emphasised the importance of a longer reauthorization period to allow for growth of the online gambling sector. Although the desired 10-year extension was not approved, the five-year timeframe will provide ample stability for the industry’s operations to succeed.

There was some speculation among Atlantic City casino and politicians that the move could gain leverage in terms of raising the amount of gambling taxes collected by the State in the future. The current tax rate is 8 percent on in-person winnings at casinos, 13 percent for online sports betting, and 15 percent for internet gambling.

10-year extension is vital in New Jersey

On Tuesday, Mark Giannantonio, president of the Casino Association of New Jersey, said the full 10-year extension originally provided for in the bill is crucial to the casinos’ ongoing operations but he did not comment on the extended extension for five years.

The reauthorization 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,” Mark Giannantonio, President of Resorts and Casino Association – New Jersey

Former Mayor Guardian said the two-year time frame could devastate an industry that has been a rare success story in Atlantic City. He added that online gambling operations in New Jersey brought in more revenues than any of the other states that offer it. He firmly believes that no online gaming company would choose to invest money in a business that only has a limit of two years to operate.

 

 

Since New Jersey legalised internet gambling in November 2013, casino operators and their online affiliates have won US $6.29 billion from gamblers, according to the American Gaming Association. That does not include money from online sports betting. Online gaming also provided a crucial revenue stream for businesses and the state during the shutdown periods of COVID-19.

In the United States, several states have legalized online gambling while others have legalised sports betting only.

Apart from New Jersey, other states that offer regulated online gambling in the jurisdiction are Nevada, Delaware, Pennsylvania, West Virginia, Michigan, and New Hampshire.

 

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