Online casinos have become a cornerstone of New Jersey’s gambling revenue and economy, captivating online players across the state. The iGaming market has flourished in the last years, which prompted legislators in Trenton to move in preparation for the current online casino law’s impending expiry. The new NJ Online Casinos Extension Bill (S3075) aims to prolong the legality of NJ internet casinos for an extra ten years. This proactive move demonstrates the state’s commitment to upholding the thriving online casino industry, preserving its survival, and giving players access to a secure and regulated gaming environment.
The US gambling market has seen substantial growth since New Jersey became the first state to regulate and tax lawful online casino games in 2013. Earnings from internet casinos in the state exceeded $1.66 billion in 2022. Furthermore, this sum makes up 29.6% of all yearly earnings from Atlantic City, online gambling, and sports betting. Now, legislative proposals are being made to guarantee the integrity and moral conduct of the online gaming sector. One noteworthy initiative is the recently introduced underage gambling bill. It specifically aims to strengthen measures to prevent underage individuals from registering on online gambling platforms.
But this NJ online casinos extension bill is crucial as the existing law allowing internet casinos expires in November 2023.
The NJ Online Casinos Extension Bill seeks to extend the period for issuing online gambling licenses in New Jersey. Therefore, this would extend online gambling operators’ licenses until 2033. This would also create a stable and predictable market that would bring considerable advantages to both operators and US punters. The measure ensures that online casinos can operate safely. Additionally, it also enables operators to make long-term plans for expansion and investment. Overall expansion should bring benefits to the sector. Namely, promoting sustainability, and fostering the expansion of New Jersey online casino businesses.
Advocates of the NJ Online Casinos Extension Bill underline the advantages it offers, such as stability and potential for development. The law seeks to lengthen the NJ online casinos authorization period with little to no political resistance, assuring certainty for the iGaming industry. Furthermore, the Republican Sen.Vince Polistina, a co-sponsor of the Senate Bill NJ online casinos extension, aptly stated:
“Internet gaming has kept New Jersey at the forefront of 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.”Senator Vince Polistina
There has been minimal political opposition against the New Jersey Online Casinos Expansion Bill.
Since 2013, approximately $1.065 billion in gambling winnings taxes have been collected thanks to the higher tax rate of 15% on NJ online casino earnings as opposed to 8% for physical casinos. In the first four months of 2023, gambling winnings taxes exceeded $93 million. This way, it surpassed those of Atlantic City’s casinos ($56.4 million).
Therefore, the NJ online gambling revenue that casinos have been recording adds strength and strengthens the argument for expanding this bill with minimal opposition.
The gambling industry in the state has witnessed a phenomenal expansion of NJ online casinos. A sizable amount of New Jersey gambling revenue now comes from internet gambling, which has grown significantly over time. 4.5% of the entire state revenue in 2014 came from the Internet; four years later, that percentage increased to 10.3%.
As more NJ gamers shifted to online platforms for their gambling amusement, the effects of COVID-19 and brief casino closures further drove the increase of NJ online casino revenue. Thus, the statewide market share reached 20% in 2020. Over $1.66 billion in income was earned by online casinos last year, which is 29.6% of the total annual revenue from Atlantic City, internet gambling, and sports betting. This expansion exemplifies the NJ online casinos’ rising importance to the state’s gambling sector.
In conclusion, New Jersey’s journey in regulating the gambling sector has been a game-changer. We’ve indeed witnessed the remarkable growth and success of the industry. But with the expiration of the current law looming, action is needed. The NJ Online Casinos Extension Bill offers a chance to secure stability and growth, so this extension will ensure that New Jersey remains a thriving hub for online gaming!