In an unexpected change of events, New Jersey legislators have proposed extending internet gambling in the state for a much longer amount of time. Initially, there were proposals to limit internet wagering authorization to two years. However, after heavy opposition from casinos and other southern New Jersey interest groups, the bill was quickly changed, now proposing a five-year extension. The reason for this abrupt change is unknown, although it has received approval from the Southern New Jersey Chamber of Commerce.
The original cut in the proposed law prompted outcry among casinos and southern New Jersey industry groups. In response to their concerns, legislators quickly changed the bill, providing a revised plan for a longer extension. The Southern New Jersey Chamber of Commerce expressed its approval of the new proposal, praising the General Assembly for abandoning the surprise two-year reauthorization in favor of a five-year timeframe.
While the bill does not achieve the original aim of a ten-year extension, it does provide some certainty to the New Jersey sports betting sector. The Southern New Jersey Chamber of Commerce feels that the five-year extension will allow the business to develop and grow inside the state. With this stability, enterprises in the sports betting industry may reliably plan for the future.
The Atlantic City casino sector and political circles speculated that the bill’s amendment was an attempt to raise tax revenues. In New Jersey, gaming tax rates are currently 8% for land-based casinos, 13% for internet sports betting, and 15% for online gambling. The Casino Association of New Jersey’s President, Mark Giannantonio, emphasized the significance of the ten-year extension for the industry’s future prosperity. He stated that the gambling industry’s taxes support critical programmes.
Don Guardian, a Republican Assemblyman and former mayor of Atlantic City, emphasized the bill’s substantial financial impact. He emphasized that without a ten-year extension, potential investors would be hesitant to invest in internet gambling enterprises due to the short duration. Guardian feels that the extension is critical for Atlantic City’s long-term viability since internet gambling has been critical in maintaining the city’s economy during the difficult times caused by the COVID-19 outbreak.
Since the launch of online wagering, excluding sports betting, in 2013, Atlantic City’s casinos and internet operators have collected a staggering $6.29 billion in revenue. These data highlight the critical role that online gambling has played in Atlantic City’s economic stability, particularly during periods of pandemic-induced limitations.
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