Another new year means another new legislative session and new initiatives being introduced to the lawmakers.
The 221st State Legislature was sworn in on January 9, and two bills related to New Jersey racetracks have already been introduced.
Both Bills aim to revitalize the declining horse racing industry in the Garden State, whose relevance has been diminished over the last decade, by introducing online slots games to the racetrack in some capacity.
Also, the Bills would also provide extra income to the Atlantic City casinos, which have been losing ground lately, despite 2023 being one of the best years for the gambling industry in recent history — and a record for NJ online casinos.
Both Bills failed to get approved by the gambling subcommittees of the two chambers in the past but may do better this time around, as lawmakers will look for ways to help keep Atlantic City afloat.
New Revenue for Atlantic City Would Be a Positive
While the two Bills being proposed to the Legislature this year are very similar to those that were introduced a couple of years ago, there is reason to believe they might fare better in the subcommittees this time around.
The reason lies in the fact that Bill would go a long way to help Atlantic City casinos by introducing an additional stream of revenue for the AC operators.
According to igamingbusiness.com, major live Atlantic City casinos have been losing the battle to online gambling, and have never fully recovered from losing their gambling monopoly over the East Coast.
Now, AC casinos would be in for a boost, as both Bills propose that a significant part of the revenue created by slot games at the NJ racetracks go to those casinos directly or indirectly.
NJ Racetracks Could Get Their Own Slots
The idea behind SCR14, the first of the two Bills introduced before the Legislature, is that standalone slot games be introduced at the NJ racetracks.
This Bill would require the state constitution to be changed, which means New Jersey voters would have to approve it via a referendum.
Once passed by the Legislature and voted for by the voters, the new law would allow for the installation of slot machines at racetracks, with a taxation rate to be set by the state at a later date.
The share that would go to the state would be split with 60% going towards the NJ state employee pension fund, 30% going to AC casino operators, 7% set aside for the restoration of AC, and 3% for programs aimed at thoroughbred and standardbred horsemen.
Slot Games to Be Offered via Online Platforms?
The other way NJ racetracks could get slot games is proposed in A107, which was sponsored by Assemb. Don Guardian.
His proposal would have racetracks become affiliates of sorts for the AC casinos and offer popular casino games via licensed online casino platforms.
This means players could enjoy the games at the racetracks but would actually play with the various online casino platforms, all of which are operating under AC casino licenses.
The New Jersey Division of Gaming Enforcement would be in charge of overseeing all such online wagers, as well as approving any deals made between the casinos and the racetracks.
Should either of the Bills be approved by the subcommittees and subsequently passed into law, the
NJ racetracks could see a significant boost in popularity and player interest by offering fresh forms of entertainment as early as this year.
