It was step down from an initial bill that floated a 10-year extension that was backed by the state’s more than 30 iGaming operators, but the legislators eventually agreed to a five-year extension and will revisit the issue in 2028.
Gov. Phil Murphy (D) signed the bill into law on July 3.
New Jersey iGaming through 2028
The state’s original iGaming bill, which allowed both online slots machines and table games, was approved in 2013 with a 10-year expiration date. Then Gov. Chris Christie (R) signed the bill into law in February 2013 and iGaming launched in the state on Nov. 26, 2013.
The state’s 21 online sportsbooks are not affected by the expiration of the 2013 bill.
The state’s casino industry publicly stated it had hoped for another 10-year extension. The original bill called for a 10-year extension, but the state legislation amended the time frame to just five years.
New Jersey iGaming is taxed at 15% of gross gaming revenue. To date in 2023 the state have brought in over $900 million in iGaming revenue, which has translated to more than $135 million in iGaming tax revenue.
Big Business for the Garden State
New Jersey iGaming has proved to be very beneficial for the state since its 2013 legalization. iGaming gross gaming revenue has eclipsed more than $1.3 billion in 2021 and $1.6 billion in 2022.
During the COVID-19 pandemic in 2020, iGaming was a lifesaver for the state’s gambling program. In 2020, New Jersey reported more than $970 million in iGaming revenue at a time when state casinos were closed or limited for many months out of the year.
New Jersey is one of seven states that currently has legal iGaming. Connecticut, Delaware, Michigan, Pennsylvania, and West Virginia all have legalized iGaming. Rhode Island recently became the seventh state to legalize iGaming this summer.
Rhode Island will impose a tax of 61% on online slot revenue and 15.5% from online table game revenues.
According to an iGaming tax revenue study commissioned by Bally’s Corporation, Rhode Island could see an additional $93.3 million in gross gaming revenue in its first year, as as much as $130.6 million by its fifth year of operation.
This translates to roughly $210 million in additional tax revenue for the state over a five year period.
iGaming in Rhode Island will be eligible to launch on Jan. 1, 2024.