Governor Phil Murphy has signed a ground-breaking legalization of online casinos in New Jersey extending the state’s internet gambling statute by five years, ensuring that online gambling in the Garden State will continue to flourish.
This gambling law, which was approved on June 30, 2023, lays the stage for more expansion and excitement in the world of NJ online casinos until the year 2028. For the next five years, US fans of legal online gambling may anticipate exhilarating prospects and profitable encounters.
The recent signing of the NJ online casinos legalization extension leaves behind many questions and worries about its potential effects. Online casinos in New Jersey have produced more than $6.3 billion in revenue and over $928 million in taxes since they were permitted in 2013. In November, the 2013 permission was due to expire, thus making the fate of legal online casinos uncertain.
The state Assembly (76-2) and Senate (37-0) approved an extension that had been changed twice without explanation just hours before the new law took effect. The next law has industry stakeholders wondering why so many amendments were made without providing adequate justifications. With the sudden change from a 10-year extension through 2033 to a five-year one, concerns were raised about the forces that inspired the adjustments and the possible economic repercussions for the future of legal online gambling in New Jersey.
The financial picture of NJ online casinos is impressive in terms of generated revenue and economic effects. Internet gambling (excluding sports) has regularly outpaced Atlantic City casinos from January 2019 through May 2023, generating an astounding $64.3 million in extra tax income for the state.
It is noteworthy that since 2020, gambling winnings taxes from online gaming have regularly outperformed those from land-based gambling. Gaming taxes exceeded AC gaming taxes ($70.5 million) in 2023, totaling $117 million. The enormous financial advantages are highlighted by the fact that legal online gambling is taxed at a higher rate (15%) than Atlantic City casinos (8%) and NJ sportsbooks (13%).
Although initially a 10-year authorization was pursued, the settled expansion of the NJ online casinos legalization offers the state of New Jersey tremendous chances for future investments, broader development opportunities, and increased economic success.
When considering the possible advantages for the state and local communities, it becomes obvious why Trenton supported the NJ online casinos law extension. The government wants to take advantage of the booming sector, so it has legalized and expanded this gambling regulation. The inexplicable modifications could be an attempt to increase their holdings in the online gaming market.
The possibility for higher tax rates on internet gaming revenue may be seen when compared to other states like Pennsylvania and Michigan. While Michigan taxes digital operators at 20% for income under $4 million and 28% for anything above $12 million, Pennsylvania levies a 54% tax on online slots and a 16% tax on table games other than poker.
The opportunity to boost income, create jobs, and improve entertainment alternatives while promoting responsible gambling is presented by the expansion of the online gaming sector in New Jersey.