NJ Casinos Request Extension of Internet Gambling, State May Only Allow 2 More Years
The casinos in New Jersey are seeking to extend the state’s leading online gambling market for another decade, however, lawmakers in the state may only grant an extension of two years.
A state embassy committee approved legislation on Tuesday that originally would have allowed online casino gambling until 2033.
However, the committee changed it, shortening the extension to just two years. The changes were not announced during the hearing, and lawmakers could not be reached for comment after the vote.
It is unclear when the final vote will take place.
Internet gambling has been a success story in New Jersey, which has won more from online gamblers than any of the five other states that also allow it.
Since New Jersey began allowing online betting in November 2013, Atlantic City casinos and their online partners have won $6.29 billion from players, according to the American Gaming Association, the casino industry’s national trade group. This does not include online sports betting.
It’s widely credited with helping Atlantic City casinos stay afloat during 3 1/2-month shutdowns in 2020 at the start of the COVID-19 pandemic, as well as reopening casinos in the few months that followed, as many players were still wary of venturing out into crowded indoor spaces.
“Reauthorization of the Internet Gaming Bill for 10 years is vital to the continued success of New Jersey’s gaming industry and programs supported by taxes collected,” said Mark Giannantonio, President of the Resorts Casino Hotel and Casino Association. from New Jersey. “This will also increase investor confidence in New Jersey’s internet gaming industry.”
He declined to comment on the amendment to the law, which will reduce it from 10 years to two years.
While it has undoubtedly provided a new source of income for Atlantic City casinos, Internet gambling appears to be permanently changing the habits of some players who prefer to bet from home, the office, the beach or other locations rather than visiting the casinos in person.
Jane Bokunewicz, director of Stockton University’s Lloyd Levenson Institute, which studies the Atlantic City gambling market, said Internet gambling is becoming part of the new normal for many gamblers.
While casino executives are happy with the additional revenue, they warn that Internet gambling profits can be misleading for the overall health of their business. Money from online winnings must be shared with partners such as technical platforms and, in the case of sports betting, sportsbooks, and is not just for the casinos to keep. Some casino managers say that up to 70% of online winnings go to their partners in online ventures.
In addition to New Jersey, Internet gambling is legal in Pennsylvania, Nevada, Michigan, Delaware and West Virginia.
