A bill introduced in the New Jersey State Assembly to extend the state’s online gaming authorization for 10 years through 2033 was amended by an Assembly committee to provide for only a two-year renewal term, and then to a five-year term after an outcry from the casino operators.
New Jersey’s online casino industry has led the nation in revenues generated after becoming the first state to authorize iGaming and fighting to overturn the federal ban on sports betting. While stakeholders expected easy approval of a 10-year extension, the Assembly Budget Committee amended the bill to a two-year term.
Why is a mystery. No one in the legislature has revealed the rationale behind the change. However, representatives of local businesses and the casino industry reacted quickly to the amendment.
We’re all trying to figure out what happened,” said Don Guardian, a Republican Assemblyman and former mayor of Atlantic City, in an interview with the Associated Press.
The Chamber of Commerce Southern New Jersey immediately sent out a press release denouncing the change. “The Chamber of Commerce Southern New Jersey (CCSNJ) is extremely disappointed that the New Jersey General Assembly proposed a drastic amendment to A-2190, which would impact the reauthorization timeline for internet gaming,” Christina Renna, the president and CEO of CCSNJ, said in the statement. “As originally written, this legislation would have extended online gaming for another 10-year period through 2033. However, without warning or explanation, an amendment was proposed that changed the reauthorization to a mere two-year period ending in 2025.”
“The reauthorization of the internet gaming bill for 10 years is vital to the continued success of the gaming industry in New Jersey and the programs that are supported by the taxes collected,” said Mark Giannantonio, president of Resorts Casino Hotel and of the Casino Association of New Jersey, according to the Associated Press. “This will also provide investor confidence in the New Jersey internet gaming industry.”
In reaction to this vehement opposition from the business community, the Budget Committee re-amended the new term to five years.
CCSNJ praised the latest change, saying the business group “is incredibly pleased that the General Assembly shifted away from a drastic and unexpected two-year internet gaming reauthorization through 2028,” according to the AP.
“Although not the 10-year window the bill’s sponsor originally intended, this adjustment still allows for the sports betting industry to grow and thrive in New Jersey with a five-year security in its operating ability.”
The AP article cited speculation among Atlantic City casino and political officials that the move might represent potential leverage over the city in terms of possibly raising the amount of gambling taxes collected by the state in the future. That rate is 8 percent on in-person winnings from gamblers at casinos, 13 percent for online sports betting, and 15 percent for internet gambling.
If that’s the case, no one is talking.
