Poll: What will be the impact of NJ regulating?
How significant would online gambling in New Jersey be for the nascent US egaming industry?
New Jersey Governor Chris Christie’s decision that online gambling in the state is a “historic opportunity”, setting out amendments for the law to be approved, was the breakthrough many had been waiting for.
Although Christie vetoed Senator Raymond Lesniak’s bill as expected for the second year running, this time it was conditional, with the Governor wanting to see online winnings taxed at 15% rather than 10% and for a review of the legislation after 10 years.
Other changes requested before The Garden State becomes the third to legalise egaming in some form are amendments to sections about gambling addiction and licence issuing fees, as well as a requirement that state-elected officials disclose representations of entities which apply for or obtain licences.
The news is arguably a significant boost to Atlantic City casinos, the only operators eligible to apply for licensure, after several years of disappointing financial results. Hurricane Sandy also forced casinos to shut their doors for several days and as a result, November’s results showed that slot revenue for the 12 resorts was down 27% year-on-year.
One casino which has been struggling in particular is the Atlantic Club Casino, set to be acquired by PokerStars, which has welcomed Christie’s response to the push for egaming.
Last month a leading analyst claimed New Jersey’s online market could generate between US$650m and $850m a year, which would mean an additional $150m in additional tax revenues each year.
But eGaming Review wants to find out to what extent regulated egaming in New Jersey would impact on the nascent US egaming industry as a whole. Will the Garden State be the first of several to legalise online gambling this year, with legislation currently on the table in Hawaii, Iowa, Massachusetts and California?
Moreover, will New Jersey’s regulation be the turning point which leads to a renewed and more successful drive for federal legislation, after Senator Harry Reid was not even able to introduce a bill last year?
Or is this not yet the breakthrough many have been waiting for “ will it take more states, or a bigger state like California, to legalise online gambling and kick-start the US egaming industry?
To vote, see the right-hand side of the page or visit the eGR LinkedIn group.