The clock is ticking for New Jersey’s online gambling license renewal. Can lawmakers save this revenue lifeline amid concerns about growing gambling addiction?
KEY TAKEAWAYS
A bipartisan bill is moving towards final approval to extend online casino gambling in New Jersey for another 10 years, aiming to safeguard state revenues.
Critics raise concerns about increasing rates of gambling addiction, suggesting more state-level interventions are needed.
State budget documents project a significant increase in overall Casino Revenue Fund collections and internet gambling revenues in the upcoming fiscal year.
Time Running Out: New Jersey Faces the Renewal of Online Casino Gambling License
In the race against time, New Jersey lawmakers are hustling to keep the profitable online casino gambling alive as its original 10-year license approaches its expiry. A two-party bill is on its way to secure the final approval in the Legislature this month, promising an additional decade of legal online gambling in New Jersey. The move ensures a steady influx of millions into the state’s treasure chest.
The Golden Decade of Online Gaming
Advocates of online casino gambling highlight its significance as an irresistible attraction for Atlantic City casinos. They argue that the clock is ticking and lawmakers need to act swiftly, as the law that first greenlit online gambling in 2013 was only for a provisional 10-year period.
This crucial renewal deadline looms in November as per the legislation, approved by a significant state Assembly committee last week. The same bill is expected to be reviewed by the Senate’s budget committee and might land on Gov. Phil Murphy’s desk for the final verdict by month-end.
Reiterating the precedent, the new legislation wouldn’t sanction online gambling permanently but permit it for an additional decade.
Online casino gambling, according to its proponents, has been a saving grace for Atlantic City’s casino industry. Its importance amplified during the economic lull invoked by Murphy’s lockdown orders amid the initial COVID-19 period. This perspective echoed during the recent hearing in Trenton where several individuals and groups vocally supported the 10-year extension.
In closing, Assemblyman Don Guardian, a former Atlantic City mayor, said, “Online gambling has become an integral part of gaming in New Jersey.” While the debate continues, one thing is clear: the fate of online gambling in New Jersey will greatly impact both the state’s economy and its social fabric.
The Revenue Surge and The Shadow of Addiction
On the one hand, state tax revenues from online casino gambling have seen a steady climb, transforming from meager initial figures to a substantial $250 million annual contribution to the state via the Casino Revenue Fund.
However, as the renewal measure progresses in Trenton, concerns about increasing gambling addiction rates cast a shadow. Critics argue whether the state should invest more resources in aiding problem gamblers now that they can place their bets virtually, including sports events since such gambling has become legal in New Jersey.
A counter-bill moving in the Legislature suggests establishing a “diversion court” pilot program to enhance treatment for those diagnosed with a gambling addiction who have committed crimes due to their disorder. The pilot program proposes mandatory restitution as part of the treatment, managed by a mental health professional.
The Backstory and The Road Ahead
The law legalizing online casino gambling was first instituted in 2013 by then-Gov. Chris Christie, when Atlantic City’s casino industry was grappling with the aftermath of the Great Recession and competition from neighboring states.
The present law mandates online betting sites to operate in collaboration with physical casinos in Atlantic City, a stipulation the renewal legislation will maintain. The bill must be adopted before the November 2023 deadline to ensure an uninterrupted online casino gambling experience in New Jersey until 2033.
In closing, Assemblyman Don Guardian, a former Atlantic City mayor, said, “Online gambling has become an integral part of gaming in New Jersey.” While the debate continues, one thing is clear: the fate of online gambling in New Jersey will greatly impact both the state’s economy and its social fabric.
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