New Jersey considers five-year extension for online betting (1)
New Jersey considers five-year extension for online betting

New Jersey lawmakers are considering legislation to extend online betting for another five years. The state legalized the sport for ten years in 2013 and current regulations expire in November.

A bill aimed to reauthorize online betting for another ten years. That has been cut to just two years, but the latest amendment made by the House Budget Committee on Wednesday proposes a five-year extension. The Southern New Jersey Chamber of Commerce praised the move, saying it was “incredibly pleased that the General Assembly has walked away from a drastic and unexpected measure on internet gaming for two years, through 2028”.

“While not the 10-year period that the project sponsor originally intended, this adjustment still allows the sports betting industry to grow and prosper in New Jersey with a five-year security in its operational capacity.”

There is speculation that the shortened overtime was being used to gain possible leverage over Atlantic City in terms of increased betting taxes in the future. The current rate is 8% on face-to-face winnings in casinos, 13% for online sports betting and 15% for online gambling.

On Tuesday, Mark Giannantonio, president of the Resorts Casino and Casino Association of New Jersey, said the original 10-year full extension was “crucial to the casinos’ continued operations.”

“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 supported by its tax dollars,” he said.

In 2022, New Jersey GGR tax revenues totaled $249.4 million from online gaming and $179.1 million from the nine land-based casinos. According to the American Gaming Association, since New Jersey began accepting online betting in November 2013, Atlantic City casinos and their online partners have earned $6.29 billion from online casino gaming.