Lawmakers in New Jersey are working on legislation to extend the state’s internet gaming law for another decade.
Reauthorization is crucial to an industry that has seen tremendous growth in just ten short years. Data from the New Jersey Division of Gaming Enforcement (NJDGE) show the online casino vertical had grown from $93.8 million in revenue in 2014 to $1.6 billion in 2022.
Four Operators Back 10-Year Extension
There are now 31 online gaming websites that operate from the nine casinos in Atlantic City. We believe this has been just a huge help to casinos, particularly during the pandemic. Two identical bills have been introduced in the New Jersey Legislature — A2190 in the General Assembly and S3075 in the Senate. Both would extend the state’s internet gaming law until 2033.
And both have picked up momentum as of late.
A2190 cleared the Assembly State and Local Government (SLG) Committee at a hearing on June 8. In testimony before the 5-0 vote to advance the bill, Hilary Chebra, manager of government affairs for the Chamber of Commerce of Southern New Jersey, told the panel that “allowing these gaming websites has been a huge asset to the region, particularly in South Jersey.
“There are now 31 online gaming websites that operate from the nine casinos in Atlantic City. We believe this has been just a huge help to casinos, particularly during the pandemic.”
Four operators — BetFanatics, BetMGM, DraftKings, and FanDuel — were listed as supporters of A2190 but did not need to testify, according to Assemblyman Anthony Verrelli (D-Hopewell), chairman of the SLG Committee.
Verrelli said the Casino Association of New Jersey, the Greater Atlantic City Chamber of Commerce, and the Southern New Jersey Development Council also back the bill.
After it cleared the SLG Committee, the bill was sent to the Assembly Appropriations Committee.
A2190 was introduced in February 2022 by Assembly Members Ralph Caputo (D-Nutley), Annette Chaparro (D-Hoboken), and Louis Greenwald (D-Voorhees). The bill cleared the Assembly, Tourism, Gaming, and the Arts Committee on a 7-0 vote in September 2022.
Meanwhile, S3075 was introduced on the other side of the legislature by Sens. James Beach (D-Cherry Hill) and Vincent Polistina (R-Egg Harbor Township) in September 2022.
S3075 cleared the Senate State Government, Wagering, Tourism & Historic Preservation Committee in November 2022 following a 5-0 vote. It was referred to the Senate Budget and Appropriations Committee in November 2022 and came through on an impressive 12-0 vote on Monday.
It is unclear which bill will ultimately clear the New Jersey Legislature and be sent to Democratic Governor Phil Murphy for his signature.
Most Casinos Set Online Record in 2022
New Jersey’s online casinos are required to partner with land-based casinos. Most set records for revenue in 2022.
According to the NJDGE, Borgata grossed a record $486.9 million in 2022. Golden Nugget and Resorts also set records for revenue at $431.7 million and $385.9 million, respectively. Records were also set by Hard Rock ($69.3 million), Ocean Resort ($29.8 million), and Bally’s Atlantic City ($41.8 million) in 2022.
But Caesars saw online casino revenue decline from a peak in 2021 ($101 million) to $94.1 million in 2022 — a year-over-year decline of 6.8%. Tropicana grossed $86.6 million in 2022, down less than one percent from 2021 ($87.3 million).