New Jersey iGaming Extended By Five Years Through November 2028
Posted on: July 3, 2023, 08:39h.
Last updated on: July 3, 2023, 10:47h.
New Jersey iGaming has been extended by five years through November 2028 after the legislature passed an amendment to the state’s iGaming Act and Gov. Phil Murphy (D) signed the statute into law.
New Jersey authorized online casinos with interactive slot machines and table games in 2013. Gov. Chris Christie (R) signed the statute into law that February and operations began on Nov. 26, 2013.
Officially Article 6C of the 1976 Casino Control Act, the iGaming amendment qualified Atlantic City casinos to tether their brick-and-mortar licenses to online gaming. But the provision was to run for only 10 years “unless reauthorized by law.”
Assembly Bill 2190, “an act extending the authorization for the internet gaming law,” on Friday passed the Assembly by a vote of 76-2, with two lawmakers not voting. The measure then passed the Senate with a unanimous 37-0 vote, with three lawmakers not voting.
Private Discussions
Much of the iGaming extension discussions were conducted in private. State lawmakers haven’t commented publicly as to why shorter time lengths were considered — and ultimately agreed upon — instead of the initially proposed 10 years.
Casinos can partner with multiple online casino platforms. A longer legality presumably makes the market more attractive for iGaming operators. The licenses cost $400,000 and are renewed annually at $250,000.
The Borgata, for instance, has lent its brick-and-mortar license to 11 iGaming partners, including Party Casino, Pala Casino, and BetMGM. Those operators’ iGaming revenue is bunched into Borgata’s monthly internet gaming revenue by the New Jersey Division of Gaming Enforcement (DGE). And that’s why casino reps down the shore have said in the past that the monthly revenue reports are quite misleading, as a considerable portion of the online money goes to the internet operator — not the casino.
But iGaming has considerably helped Atlantic City’s gaming interests since its enactment. iGaming has won about $6.3 billion from online players since November 2013, though much of the money has been generated only in recent years, as younger players and some traditional legacy gamblers continue to migrate online.
iGaming has also been big business for the state, which takes 15% of the internet gambling pot. New Jersey’s share from iGaming last year was almost a quarter of a billion dollars.
iGaming Receives Murphy Hancock
AB 2190 was sent to Murphy’s desk on Friday. The governor announced Friday evening that he had signed the measure to help preserve the state’s online gaming industry.
Mark Giannantonio, president of Resorts and the Casino Association of New Jersey, argued before the state decided to implement a five-year extension that a decade extension was in the best interests of the casino industry and the state.
“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,” Giannantonio declared.
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Source: casino.org
