New Jersey has a long, impactful history with gambling over the years. Through legal sports betting and casino games, they have amassed millions in revenue and tax to improve New Jersey’s economy and prosper. However, since a few weeks have passed, New Jersey legislators are experiencing conflict as the gaming license is set to expire this November. And as of today, there’s no clear decision yet.
This article will discuss the events surrounding New Jersey’s license to operate the Internet and local gambling. Read more below and see whether this event would affect how New Jersey, or perhaps the country, runs casinos and other legal gambling operations.
New Jersey’s Past With Gambling
Before the popularity of FanDuel Online Casino and other gambling platforms, New Jersey had been in a state of economic recession and instability. However, since the legalization of such platforms in November 2013, it has slowly contributed to a $6.29 billion boost.
Additionally, this industry has been credited with helping the state support businesses and the economy amidst the COVID-19 shutdown, which has affected the world in more ways than one. New Jersey, specifically Atlantic City, has quickly recovered from such a downfall because of the industry’s support in tax contributions, revenue, and other charitable organizations associated with them.
A Rising Industry to an Economic Driver
The introduction of internet gambling or gaming in New Jersey is essential for the whole gambling industry. While traditional gambling establishments generate millions in revenue from the local sportsbook and casino estates, digital gaming platforms have amassed hundreds of millions. It encompasses an excellent potential for increasing the economy.
For example, several economic reports indicate that digital platforms have generated an estimated $160 million, with online sports betting alone taking $82.2 million on their names. As of the end of May 2023, the digital casinos and sportsbooks alone are nearing the 1 Billion mark on their combined revenues.
Additionally, when tax is calculated for the state, both industries could have reached a $150 million gain for the year.
More Than Just a Lucky Pick
According to Sen. Vince Polistina, internet gaming or iGaming (which is also digital gambling) has generated thousands of competitive jobs and millions in tax revenues to improve the state.
The understanding and potential of digital platforms has started initiatives for other states to join in, just like Rhode Island’s ongoing legalization process that could start as early as 2024.
The Upcoming License Renewal
New Jersey’s license to operate is set to expire within November 2023, which has scrambled legislators to procure documents and get approval as soon as possible. In comparison, it can be quickly approved by the state assembly and senate with little discourse between political heads. However, the same can’t be said for the events unfolding behind the scenes.
The bill’s first version states that state licenses for operating casinos would run for another ten years, having it renewed again by November 2033. Interestingly enough, the first bill in 2013 has also been set to operate within ten years, which is what New Jersey legislators are experiencing today.
An Unexpected Change
As mentioned, many things are happening behind the scenes, and this is no exception. Through a sudden change that alerted the whole industry, legislators moved to cut the initial 10-year extension to two years of internet casino platforms in the state.
As expected, it roused a public outcry from New Jersey political heads and business owners. Which made another change to extend it to five years, half of what the initial bill had. The modification remains a mystery to the public, and no clear explanation was given.
Nevertheless, the Chamber of Commerce of Southern New Jersey has released a statement that the represented group is pleased with the five-year change despite being short of the initial 10-year legalization bill. This adjustment still allows for many platforms to operate within a five-year window.
And, of course, speculations arise that this drastic change might represent potential political leverage or leeway to adjust state revenue within the gambling industry through an increase of gambling taxes in the future.
Final Thoughts
Throughout the history of New Jersey, there is no doubt that the casino and online gambling industry has pushed the state out of recession and become a strong economic driver toward New Jersey’s future.
That’s why it would be such a critical issue to tackle New Jersey’s move to extend the state’s operating licenses. And the events that unfolded today can only show the possibilities and events that will occur until the final operating month of November 2023. Until then, we can only speculate and enjoy the New Jersey gaming experience while it’s still open for all.