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NJ Lawmakers Race Against Time to Extend iGaming Law for a Decade
By Jeff Osienya Jun 17, 2023 LegalityThe Garden State is looking to renew its iGaming regulation period for another decade to keep the industry alive for fans and raise revenue for its tax coffers. From the look of things, the measure could be law by the end of June.New Jersey has enjoyed the perks of iGaming for a decade now. However, with the law (passed in 2013) expiring this year due to a ten-year clause, the fate of iGaming in the state hangs in the balance.
That said, the legislators in the Garden estate are stepping up efforts to ensure that the state’s online gaming industry isn’t interrupted by the impending expiry of the current deal. A new bill, Senate Bill 3075, seeking to extend the iGaming mandate in New Jersey for another decade, is in the works. Senators James Beach (D-Camden) teamed up with Vincent Polistina (R- Atlantic) to table the bill, and it is expected to sail through the approval process, barring any major unforeseen hurdles.
Meanwhile, Senator Polistina, one of the main proposers of this bill, stressed the importance of its approval, pointing out some of the notable benefits regulated iGaming has brought to New Jersey. He said:
Quote“The legalization of online gambling and sports betting was a catalyst for struggling casinos in the aftermath of the great recession. In places like Atlantic City, internet gaming has created a number of good-paying jobs for workers as well as generating millions of dollars in tax revenues for the state.”
A Continuation of the Old
SB 3075 follows in the footsteps of its predecessor, but interestingly, it does not seek a permanent stay of the iGaming mandate. Instead, it is going for a ten-year continuation of the current terms set to expire this year in November.
Under the current provisions of the law, companies seeking to own an operator’s license must be affiliated with brick-and-mortar casinos in New Jersey – a clause that stays intact in the new bill. The bill passed through the Senate’s State Government, Wagering, Tourism, and Historic Prevention committee last week. And after further scrutiny by the Senate’s Budget Committee, it received approval.
Having already been okayed by two vital Senate committees, it is set to be tabled on the Senate floor, where it will be debated and voted on. As things stand, the pace of proceedings means that the bill could very well be on Governor Phil Murphy’s desk by the end of this month.
iGaming Has Brought Tons of Revenue for NJ
One of the reasons there is general support for the renewal of online wagering in New Jersey is how this sector helped the state and pretty much other states in the country. This is especially the case as iGaming stood tall when the raging Covid-19 pandemic crushed the land-based casino scene in the USA and worldwide.
Since its inception in 2013, online gaming has made great strides revenue-wise in the state. What was once a drop in the ocean compared to what brick-and-mortar casinos brought is now playing in the big leagues. From bringing in tax of just $148.8 million in 2015 to a staggering $1.66 billion last year, it may be catastrophic for NJ’s annual revenue should this bill fail to pass for any reason whatsoever.
According to the latest local media reports, in April alone, online gaming brought in $159 million, which represents a 16% rise on a year-by-year basis from 2022. Moreover, the iGaming sector was vital to the state’s recovery after the harsh 2007-2009 economic recession. Thus, it is almost given that most New Jersey residents and lawmakers in the know have attached a sentimental value to this industry.
Responsible Gambling Highlighted In the State
While fundamental aspects of the bill are set to remain as they previously were, there has been an ongoing discussion about reinforcing responsible gambling measures. In May, the Deputy Assembly speaker, Mila Jessey (D-Morris/Essex), proposed legislation that would require gambling addiction prevention at colleges in the state.
The bill would require public colleges and universities that partner with sportsbooks to develop a gambling addiction prevention program for their students. Additionally, SB 3075 also requires that schools prominently display a gambling addiction hotline in a bid to help with potential problem gambling incidences.
This move comes at a time when there is greater scrutiny across the gambling sector in the country pertaining to the relationship between college athletics and sports wagering. Another New Jersey bill also proposes a tremendous shift in the approach to underage gambling. Instead of punishment, the bill seeks to provide guidance and support to underage people found to be gambling.
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