New Jersey lawmakers have put forth a new proposal to extend internet gambling in the state for at least five more years. This comes after a previous measure had sought to limit the extension to just two years before being amended due to concerns raised by casinos, their political allies, and business groups in southern New Jersey.
The original bill aimed to reauthorize online betting for a period of ten years, but faced a reduction to two years on Tuesday. However, the latest amendment on Wednesday has found a middle ground in a five-year extension, providing a more stable operating environment for the iGaming industry.
The reasons behind the initial change and subsequent modification remain unclear, with no explanations provided and top Democratic leaders declining to comment the decisions with local media. This has left many in Atlantic City puzzled and searching for answers.
Don Guardian, a Republican Assemblyman and former mayor of Atlantic City, expressed the confusion surrounding the situation, stating: “We’re all trying to figure out what happened.”
The Chamber of Commerce of Southern New Jersey welcomed the latest change, reports Associated Press, highlighting the positive impact on the sports betting industry and its ability to flourish with a five-year operating security. Although not the originally intended ten-year window, this extension is seen as a favorable compromise.
Speculation has arisen among Atlantic City casino and political officials that the move might represent potential leverage over the city in terms of potentially raising the gambling taxes collected by the state in the future. Currently, the tax rate stands at 8% for in-person casino winnings, 13% for online sports betting, and 15% for internet gambling.
Mark Giannantonio, President of Resorts Casino and the Casino Association of New Jersey, stressed the importance of the full ten-year reauthorization for the ongoing success of the gaming industry in the state. However, he refrained from commenting on the revised five-year extension.
Mark Giannantonio, president of the Casino Association of New Jersey
Guardian warned that a two-year time frame could have devastating effects on an industry that has been a rare success story for Atlantic City. Online gambling has played a significant role in generating revenue, surpassing other states that offer internet betting.
“No one is going to invest money in a company that has (an internet gambling identity) if you only have two more years,” Guardian said, as per AP. “Those things cost money. This has been what’s helping keep Atlantic City alive.”
The introduction of internet gambling in New Jersey in November 2013 has proven crucial for the survival of Atlantic City’s casinos. Since then, they have amassed $6.29 billion in winnings from online gamblers, according to the American Gaming Association. This figure does not include profits from online sports bets.
Internet gambling has not only provided a lifeline during the COVID-19 pandemic but also sustained Atlantic City during challenging periods, as cautious gamblers opted for the convenience and safety of online platforms.
Original article: https://www.yogonet.com/international/news/2023/06/29/67712-new-jersey-lawmakers-reach-middle-ground-in-fiveyear-extension-proposal-for-igaming
