New Jersey’s iGaming bill may only extend online casinos until November 2025
Approval of New Jersey’s online casino platform is set to expire in November. Unless the state legislature
State lawmakers are expected to pass a bill extending the 2013 iGaming law, but time is running out.
Senate Bill 3075 and Assembly Bill 2190 were introduced last year but were recently reconsidered. Legislative copycats initially sought to extend New Jersey's online casino gambling licenses by 10 years, until November 2033.
The legislation would amend the state's iGaming law to allow online gambling to continue 20 years after the state first launched online casinos. The first legal online casino started operating on November 26, 2013.
Committee Change
SB 3075 and AB 2190 must first be considered in committees of their respective chambers before moving to a full vote. While there is believed to be little opposition to expanding iGaming in New Jersey, The Associated Press reported that the Chamber of Commerce Budget Committee revised its version of the meeting to shorten the extension from 10 years to two years.
AB 2190 has received support from four General Assembly committees. The bill received active review by the Assembly Committee on Tourism, Gaming and the Arts, the Committee on State and Local Government, and the Appropriations Committee before the Assembly Budget Committee adopted the amended regulations.
The Senate version of the iGaming bill remains in effect and is extended for 10 years. The Senate bill was passed by the State Government, Gaming, Tourism and Historic Prevention Committee and the Senate Budget and Appropriations Committee.
New Jersey’s 2013 iGaming law allows for extensions, but only through legislative action.
The 2013 bill signed by Gov. Chris Christie (R) requires that "authorization of gambling over the Internet ... will expire 10 years after effective date ... unless reauthorized by law."
iGaming Business
Online casinos provide Atlantic City casinos with a new revenue stream. New Jersey’s iGaming sites have generated nearly $6.3 billion in gross gaming revenue (GGR) since the launch of the first interactive slot machine.
iGaming activity has increased significantly over the past five years and has also seen significant growth during the COVID-19 pandemic. iGaming's GGR rose from less than $300 million in 2018 to over $1.6 billion last year, a 433% increase in just five years.
While Atlantic City casinos say online gambling revenue is not as beneficial as brick-and-mortar operations, and a large portion of online gambling is distributed by third-party online gambling providers like DraftKings, the state's tax advantages are stronger.
Atlantic City's land-based GGR is taxed at an effective rate of 9.25%, with 8% accruing to the state and the remaining 1.25% to the Casino Reinvestment Development Authority. Taxes on online gaming are much higher, with iGaming GGR subject to a 17.5% tax, with 15% going to Trenton and 2.5% reserved for community investment.
In 2022, New Jersey’s iGaming GGR tax revenue totaled $249.4 million and GGR tax revenue from nine land-based casinos totaled $179.1 million.
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Source: www.casino.org
