The Assembly has decided on an extended legalization of NJ online casinos, although the extension is not as long as anticipated.
New Jersey’s online casino law is on the brink of expiry, sparking legislative discussions on the future of the internet gaming bill in the state. However, the Assembly’s recent decision to extend the legalization of NJ online casinos hasn’t matched expectations. The initial anticipation was for a decade-long extension. Yet, the Assembly has granted a mere two-year extension through the A2190 bill.
The NJ online casino gaming law, which has set the precedent for other states considering the legalization of online casinos, is nearing its expiration in November 2023. It was initially expected that the lawmakers would renew this law for another decade. However, bill A2190 was approved to extend the NJ internet gaming bill by only two years.
Sen. Vince Polistina, a co-sponsor of the Senate proposal, stated:
“Internet gaming has kept New Jersey at the forefront of an evolving gambling industry. This extension supports the integral role that the internet plays in shaping the current and future success of casinos in New Jersey.”Sen. Vince Polistina
The Assembly’s decision regarding the NJ Online Casinos extension bill has left many people puzzled. That’s because the extension of the legalization of NJ online casinos was set for a shorter period than expected. Online casinos in New Jersey have seen remarkable success since their launch in 2013. They generated over $6.2 billion in gambling revenue and contributed more than $925 million in state tax revenue.
Even with these stats, the success of online casinos is unquestionable. There are underlying concerns regarding the higher tax rates (15%) for NJ online casinos, compared to their land-based counterparts (8%). Additionally, online operators must share revenue with partners providing back-end technology, impacting their profitability.
Regardless of these challenges, online casinos have witnessed continuous growth in New Jersey. Indeed, the most significant revenue-generating months for NJ online casinos have been within the past quarter.
Despite the clear success, one individual explained:
“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. This will also provide investor confidence in the New Jersey internet gaming industry.”
The Assembly’s decision on an extended legalization of NJ Online Casinos has come with unexpected changes. However, the extension will maintain the status of legal NJ online casinos for another two years.
This decision has underlined the critical role online casinos play in the state’s economy and its evolving gambling industry. Despite the deviation from the anticipated ten-year extension, the extension underscores the continued recognition of the importance of online casinos in New Jersey.
Regardless of the length of the extension, it is clear that the state remains committed to supporting the growth and success of NJ online casinos, ensuring that the state continues to be a leader in the evolving landscape of internet gaming.