Casinos in the state of New Jersey are willing to see their permits for offering online gambling services for another 10 years, but state lawmakers may only approve the service for an extra two years.
On June 27th, a state Assembly Committee gave the green light to a proposed piece of legislation that originally sought to allow online casino gambling to be offered in New Jersey for another 10 years, through 2033. However, the Committee brought an amendment to the bill to extend the legal offering of Internet gambling services for two years only. At the time of the hearing, the changes to the draft piece of legislation were not made public, and local lawmakers could not be reached for comment after the vote took place.
For the time being, the date for the final vote remains unclear.
New Jersey’s Online Gambling Sector Remained Successful Even During Covid-19
Online gambling has been extremely successful in the state of New Jersey. Currently, the state has won more money from online gamblers than any of the five other US states that legally offer such gambling services – Nevada, Delaware, Pennsylvania, West Virginia, and Michigan.
Online bets became officially available to New Jersey customers in November 2013. According to data provided by the American Gaming Association (ASA), since then, local casinos and their online gambling partners have managed to generate $6.29 billion from gamblers. As the national trade group for the US casino industry explained, the aforementioned figure does not include money generated through online sports betting services.
Online gambling was also the service that immensely helped Atlantic City’s casinos cope with the financial deficiencies during the three-and-a-half months of operation shutdowns in 2020 after the beginning of the Covid-19 pandemic, as well as in the months that followed the reopening of local casinos, because, at the time, many casino customers avoided large gatherings in crowded indoor spaces.
The president of the Casino Association of New Jersey, who also heads Resorts Casino Hotel, Mark Giannantonio, noted that providing another 10-year permission for online gambling services in the state was crucial to the continued success of the local gambling industry and all programs that are funded by online gambling taxes. He further noted that such permission would guarantee better investor confidence in the state’s online gambling sector. Mr. Giannantonio, however, refused to make any comments on the recent amendment brought to the bill, reducing the period for online gambling permits from 10 to two years.
About 70% of Online Gambling Winnings Shared with Casino Companies’ Partners, Executives Say
Online gambling seems to be permanently changing the habits of some gamblers in the state who would prefer betting from the comfort of their home, office, or pretty much wherever they are, instead of visiting brick-and-mortar casinos. On the other hand, digital gambling services have been an important revenue stream for casinos in Atlantic City.
The director of Stockton University’s Lloyd Levenson Institute which has been studying the state’s gambling market – Jane Bokunewicz – explained that online gambling is becoming part of the “new normal” for many customers across Atlantic City and New Jersey.
On the other hand, casino executives have warned that the winnings generated as a result of online gambling could be misleading in terms of their business’ overall health. Currently, casino operators are required to share their online gambling winnings with various partners, such as technology platforms. According to some casino executives, gambling companies share as much as 70% of their online winnings with their online venture partners.