New Jersey Governor Mulls 5-Year Extension of Internet Gambling
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Following the state Legislature’s passage on Friday, a measure to prolong online gambling in New Jersey for a further five years is now in the hands of Governor Phil Murphy.
With no resistance from politicians, the bill was adopted by the state Assembly and Senate and will now be put into effect by the Democratic governor.
The passage, however, did nothing to clear up the confusion surrounding the bill’s sudden and unannounced modifications earlier this week, which infuriated the Atlantic City casino sector.
New Jersey pioneered online gambling ten years ago. It would have been renewed initially for an additional ten years.
But on Tuesday, an Assembly subcommittee reduced that to only two years without even bringing up the change or addressing it.
Since then, legislators have been reluctant to explain why the extension was cut short.
The following day, the extension was increased to five years without further justification.
An entire 10-year extension is essential for the casinos’ sustained prosperity, according to the trade group for the Atlantic City casino sector.
According to gaming industry researcher Daniel Heneghan, the nation’s largest online gambling market, New Jersey, may already have suffered as a result of the reforms.
“Reducing the time from 10 years to five years is the wrong way to go,” said Heneghan, a former newspaper writer who later served as a spokesman for the state Casino Control Commission.
Heneghan had previously covered the gambling sector in Atlantic City. It conveys the incorrect impression to businesses that are considering entering the online gambling market.
According to the American Gaming Association, the national trade association for the casino industry, since New Jersey started accepting internet wagers in November 2013, the casinos in Atlantic City and their online partners have taken in $6.29 billion from gamblers.
That excludes the proceeds from internet sports wagers.
In the lean months that followed the casinos reopening in 2020, many gamblers were hesitant to venture out to congested interior locations, and internet gambling was largely credited for helping Atlantic City’s casinos survive during the 3 1/2 months of closures during that time.
This week, political and casino executives in Atlantic City speculated that the Legislature’s action would provide them with power over the city in the event that they later decide to increase the amount of gaming revenue they collect for the state.
This rate is 8% for casino gambling winners who collect their winnings in person, 13% for online sports bettors, and 15% for online gamblers.
