Congress in Trenton has taken an important step towards continuing to allow legal online casino gambling in New Jersey.
On Monday, legislation proposing a 10-year extension of NJ online casinos advanced beyond a state Senate budget committee.
In 2013, New Jersey became the first state to regulate and tax legal online casino gambling. However, the current law authorizing online casinos expires in November 2023. The proposed bill, $3075, will extend the authorization until 2033.
Regional support when it comes to NJ on the net casinos
Democratic Sen. Vince Polistina represents Atlantic City in the State Legislature and is a co-sponsor of the legislation. Following the unanimous vote of the Senate Budget and Appropriation Committee, Polistina simply stated:
“Internet gambling has kept New Jersey at the forefront of an evolving gambling industry. This extension supports the important role that the internet plays in shaping the current and future success of casinos in New Jersey.”
The bill still needs to be approved by the Assembly and Senate before heading to the desk of Gov. Phil Murphy to be signed into law.
The actual money
There is very little (if any) political opposition to expanding the state’s online gambling laws.
For one, NJ online casino revenue is taxed at a higher rate (15%) compared to the land-based revenue (8%) generated at Atlantic City’s nine casinos.
Since 2013, NJ has collected over $1.065 billion in taxes from online casinos. In the first four months of 2023, online casino taxes have brought in more than $93 million to state coffers, compared to $56.4 million from Atlantic City’s gambling parlors.
Zero signs of NJ-NEW JERSEY online internet casinos down
Since its introduction almost a decade ago, online gambling’s percentage of the state’s overall gambling market has consistently grown.
In 2014, internet revenue accounted for 4.5% of the statewide total. It rose to 10.3% of NJ’s overall gaming revenue four years later. Accelerated by the COVID-19 pandemic and resulting AC casino closures, online gambling revenue’s statewide share grew to 20% in 2020.
Last year, online casinos generated over $1.66 billion in revenue, accounting for 30.6% of the annual total from Atlantic City, internet gambling, and sports betting.
Year-to-date, online casinos are on track to account for 35% of gambling revenue in NJ.
According to state budget documents, the forecast for the upcoming fiscal year starting on July 1 predicts an increase in the overall state Casino Revenue Fund collection. The collections are expected to reach $526 million, with net gambling accounting for $287.7 million in revenue during the 2024 fiscal year.
Brian Danzis is the lead writer for PlayNJ. He is a New Jersey native and an honors graduate of Rutgers University. As a newspaper reporter for the New Jersey Herald and Press of Atlantic City, Brian earned statewide awards for his coverage of politics, government, education, sports, and business. Currently, he serves as PlayNJ’s Atlantic City “insider” and is an expert in the gaming industry, focusing on casinos, gambling, and online gaming. David resides in Mays Landing with his wife and twins. When not at the beach, golf course, or snowboarding, Brian enjoys cheering for his beloved New York sports teams—the Yankees, Jets, Rangers, and Knicks.
