New Jersey Governor Contemplates 5-Year Extension of Online Gambling

Governor Phil Murphy of New Jersey is currently considering a bill that would extend online gambling in the state for an additional five years. The bill received approval from the state Legislature on Friday and is now awaiting action from the Democratic governor.

The measure garnered minimal opposition from lawmakers in both the state Assembly and Senate. However, it failed to address the unexpected changes made to the bill earlier in the week, which have stirred dissatisfaction within the Atlantic City casino industry.

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Online gambling was introduced in New Jersey a decade ago. The initial bill proposed a 10-year extension; however, an Assembly panel unexpectedly reduced it to two years without any explanation. Subsequently, the extension was changed to five years the following day, still without clarification.

The trade association representing the Atlantic City casino industry has emphasized that a full 10-year extension is crucial for the continued success of the casinos.

Daniel Heneghan, a gambling industry consultant, expressed concerns that the alterations may have already harmed New Jersey’s leading online gambling market. Heneghan, who previously covered the Atlantic City gambling industry as a newspaper reporter and worked as a spokesperson for the state Casino Control Commission, stated that “reducing the time from 10 years to five years is the wrong way to go” and sends an unfavorable message to potential companies interested in participating in internet gaming.

According to the American Gaming Association, the national trade group for the casino industry, Atlantic City’s casinos and their online partners have generated $6.29 billion from online gamblers since the initiation of internet gambling in November 2013. This figure excludes revenue from online sports betting.

During the onset of the pandemic in 2020 and the subsequent months of casino closures, internet gambling was widely credited with helping Atlantic City’s casinos stay financially afloat. It provided a source of revenue when many gamblers were reluctant to visit crowded indoor spaces.

Speculation arose this week among Atlantic City casino and political officials that the Legislature’s actions may be a strategic move to exert leverage over the city, potentially leading to an increase in the state’s gambling tax collection in the future. Presently, the tax rate stands at 8% for in-person casino winnings, 13% for online sports betting, and 15% for internet gambling.

Follow Wayne Parry on Twitter at www.twitter.com/WayneParryAC

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More about internet gambling extension

• Bill to extend internet gambling in New Jersey
• American Gaming Association
• Governor Phil Murphy’s Twitter
• Atlantic City Casino Industry
• New Jersey Legislature
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