Contrary to popular assumption, online casinos in New Jersey have received approval to continue their services in the state, but not until another ten years.
Brief Notes:
- The expiration date of the existing bill governing online casinos in NJ is in November.
- In New Jersey, the newly passed bill provides a mere two-year extension exclusively for online casinos.
- Examining the concerns that did not result in extending the bill for an additional decade.
In 2013, New Jersey became the pioneering state to legalize online casinos, establishing itself as a noteworthy market for other states contemplating the legalization of iGaming. The revenue statistics exhibit remarkable expansion in this sector, even following the reopening of physical casinos post-pandemic.
During the pandemic, iGaming partners enabled the survival of the gambling industry in the state, while land-based casinos were forced to shut down.
Online casinos were granted legal status in 2013 through the passing of a bill, allowing them to operate for a period of ten years. Within this timeframe, these casinos were able to generate an impressive amount of revenue, surpassing $6.2 billion from gambling activities. Additionally, the state benefitted greatly from this industry, collecting almost $1 billion in tax revenue.
Although the pandemic played a significant role in the online industry’s success, the recent achievement of record-breaking monthly revenue indicates that the industry still has a long way to go before reaching its maximum potential.
- Second Highest Revenue Record Set in May 2023
- Online casinos collected over $155 million in revenue in April 2023.
The new bill grants a two-year extension.
Many people find it hard to believe that the new bill has reduced the extension to just two years, considering the immense success of online casinos in the state.
The existing bill is set to terminate in November 2023, at which point the subsequent two-year extension will permit online gambling until 2025.
The reasons for not extending legal online casinos for another decade are ambiguous. However, industry executives have expressed concerns about the higher tax rate of 15% in comparison to the 8% imposed on land-based casinos. It is evident that land-based casinos have faced difficulties in recovering from the pandemic, and the thriving online industry may be a contributing factor to their struggles.
