Ever since Governor Chris Christie estimated that New Jersey would bring in 0 million in tax revenue from online gaming’s first year in the state, analysts have said the estimate was too high.
Later revised to $160 million, the estimate was still seen as too high. Last week, administration officials admitted the analysts were right.
State Treasurer Andrew Sidamon-Eristoff conceded last week that tax revenue for online gaming—which began in November—will be about $34 million for the fiscal year that ends June 30.
“We were told by the industry at the time that the introduction of online gaming would help energize Atlantic City’s ongoing recovery,” Sidamon-Eristoff said according to NJ.com.
But he said he remained “bullish” on internet betting in the future, “but clearly this hasn’t met our expectations for the first fiscal year.”
In budget projection released by the administration for New Jersey’s next fiscal year, gambling tax revenue is expected to increase by only $55 million.