November marks the end of the legislation that permitted iGaming in New Jersey. The law sunsets unless the legislation is extended. You would hope it would be a no-brainer as New Jersey has set the pace for online casinos In the country, according to NJ Online Gambling.
In 2014, iGaming produced $122.8 million in revenue. By 2021, online casino play set a record with $1.37 billion in revenue.
But all is not rosy. The state Division of Gaming Enforcement adds online casino revenue together with brick-and-mortar casino revenue to calculate the “payment-in-lieu-of-taxes” the casinos pay to the Atlantic City and the state. The online companies, which run iGaming operations, keep a majority of that revenue.
If that weren’t enough, the operators, whether from the U.S. or overseas, complain that they have to pay a large share of their revenue to casino companies. The 2013 law requires an online company to partner with a casino to offer its gambling.
“Who knew it would be so valuable?” Assemblyman Ralph Caputo mused. “Online casino revenue really kept the lights on down there.”
Caputo has sponsored a bill to extend the 2013 provisions by another 10 years, but wants the committee to review the impact of online casino gaming on the overall culture.
“Through these conversations, we have to have an analysis of whatever social impact there might be,” Caputo said. “We know how productive it is in terms of revenue.”
Caputo said he does appreciate that various companies are “fighting for their share of revenue, and the margins can be slim.”
