New Jersey Secures the future of iGaming with Five-Year Extension
In a significant move for the online gambling sector, the New Jersey Legislature recently cast a decisive vote, granting a five-year extension to the state’s flourishing iGaming industry. This decision, reached just before lawmakers adjourned for their summer recess, marks a pivotal moment for internet gambling in New Jersey, firmly anchoring its legal status through 2028.
The Journey to Extension
New Jersey’s A2190 bill from the 2022 session sought to extend iGaming authorization to 2033, but the Assembly approved a shorter extension period instead of the proposed 10 years.
The bill, known as A2190, sailed through the Senate with a unanimous 37-0 vote and received overwhelming support in the state Assembly, passing by a 76-2 margin. This legislative success paves the way for the bill’s enactment, awaiting Governor Phil Murphy’s signature to become law officially.
“This extension is not just a win for the casino industry but a testament to the thriving iGaming ecosystem in New Jersey,” remarked a key industry spokesperson.
Initially, New Jersey’s casino sector had lobbied for a ten-year extension, citing the vital role of iGaming in the state’s $6.45 billion gambling industry. The eventual five-year extension, a compromise from the original and the interim two-year proposal, ensures continuity for over 30 legal online casinos that are integral to the state’s economic landscape.
iGaming: A Lucrative Endeavor in New Jersey
Since its inception in 2013, internet gambling has been a major revenue generator for New Jersey, with the state amassing over $6.2 billion in taxable iGaming revenue over the past decade. The sector’s profitability continues to surge, as evidenced by a 13.7 percent increase in year-to-date iGaming revenue, compared to the previous period.
New Jersey taxes iGaming revenue at 15 percent, contributing significantly to the state’s coffers. Fiscal projections estimate a $170 million revenue growth from iGaming within just seven months throughout the fiscal year (FY) 2024. This financial boon underscores the critical importance of the industry’s stability and growth prospects.
The Broader Landscape of iGaming in the US
New Jersey stands among a select group of states with legalized iGaming, sharing this status with Connecticut, Delaware, Michigan, Pennsylvania, and West Virginia. The recent legalization in Rhode Island, with plans to launch online casinos next year, further indicates the expanding footprint of internet gambling across the nation.
The extension of iGaming in New Jersey not only solidifies the state’s position as a leader in the online gambling domain but also signals a growing acceptance and integration of iGaming into the broader gambling and entertainment industry in the United States.
Looking Ahead
As New Jersey moves forward with this newly secured extension, the focus now shifts to the future of iGaming in the state and beyond. The industry’s stakeholders, from operators to regulators, are keenly observing how these developments might influence other jurisdictions and the national iGaming landscape.
The extension also offers an opportunity for New Jersey to continue innovating within the iGaming sector, potentially setting new standards for responsible gambling, player protection, and technological advancements that could benefit the wider gambling community.
With this legislative milestone, New Jersey not only ensures the continued prosperity of its iGaming sector but also reaffirms its commitment to maintaining a secure, regulated, and thriving online gambling environment.
As the iGaming industry evolves, so too will the strategies and policies that govern it, with New Jersey’s recent legislative achievement marking an important step in the ongoing journey of internet gambling in the United States.