New Jersey’s Online Casino Market Extension May Only Last Two Years

Article ByDavid Weir

June 28, 2023

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Posted in: New Jersey Gambling News, US Gambling News

In a surprising turn of events, New Jersey’s thriving online casino industry may only receive a two-year extension from state lawmakers — for now.

That’s compared to the industry’s request for a decade-long extension to run until 2033.

A state Assembly committee assembled in Trenton (pictured) to approve bill A2190 on Tuesday, which was initially designed to extend the legalization of NJ online casinos through 2033.

However, committee members agreed to reduce the extension to just two years before passing the bill. The specific lawmakers involved have yet to publicly comment on their decision, which could see interesting ramifications when the bill goes to a wider Assembly vote.

An identical Senate equivalent bill is still in the committee stage. There are no indications as to when a vote on the bills will be held.

Related: The best online casinos in New Jersey, reviewed and rated

Online Casino Success

Since its inception in November 2013, New Jersey’s online gambling market has been a resounding success, outperforming all other states that also have legal gambling.

The online gambling sector, comprising Atlantic City’s casinos and their online partners, has generated a staggering $6.29 billion in revenue.

Online casinos in the Garden State brought in a record $165.7 million in revenue in March of this year alone.

Revenue from online gambling winnings is shared with partners like tech platforms and sportsbooks, and not solely for the casinos to keep. Some executives estimate that up to 70% of online winnings go to their partners in online ventures.

Regardless, the online gambling industry played a crucial role in keeping Atlantic City’s economy afloat during the COVID-19 pandemic. And New Jersey player’s appetite for online casino gaming has not waned much since.

Those revenues have also translated into $925 million in taxes for the state.

“Internet gaming has kept New Jersey at the forefront of an evolving gambling industry,” said Senator Vince Polistina (R-2), a co-sponsor of the Senate proposal. “This extension supports the integral role that the internet plays in shaping the current and future success of casinos in New Jersey.”

In-person revenues at Atlantic City casinos are still growing steadily, but nowhere near the level of the online operations.

That has led the city to encourage more family friendly venues and events over the past year, such as a new $100 million waterpark on a former Caesars owned casino site that opened last week.

Vital Extension

Despite the undeniable success of online gambling, the proposed two-year extension has raised concerns among industry stakeholders.

They argue that a longer extension is crucial, although no officials have yet directly commented on the change in the potential legislation.

“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,” said Mark Giannantonio, president of Resorts Casino Hotel and the Casino Association of New Jersey.

The final decision on the extension of New Jersey’s internet gambling market now remains uncertain, awaiting further deliberation by state lawmakers. No date for a final vote has been announced.