NJ Governor Reauthorizes iGaming for Five Years

New Jersey Casinos

NJ Online Casino Gaming Extended for 5 Years

It’s decided. Lawmakers issued a reauthorization of iGaming for New Jersey with a five-year time frame. A few days ago, Governor Phil Murphy signed the law, allowing online casino gaming to continue through 2028. The extension time frame surprised many in the industry, as another ten years was expected.

Back and Forth with Time Frames

In 2013, then-NJ Governor Chris Christie signed a law to authorize iGaming for ten years. November 2023 was the deadline for today’s lawmakers to reauthorize the industry. The legislation was introduced in 2022, but no action was taken.

This year, the pressure was on to get something done to ensure the multi-million-dollar business stays intact. Due to the industry’s success, online casino operators expected the same ten-year time frame. However, it was quickly announced that lawmakers were considering a two-year reauthorization.

The short time frame caused operators to worry and speak out against it instantly. Supporters indicated that a longer period is necessary, as New Jersey needs to remain competitive against other states that are expanding gambling services and continue providing tax money for important programs. Jobs would also be at risk.

Discussions began again, and a middle ground was found with the five-year extension. It is unclear as to why the extension is shorter than the original law. Some fear that lawmakers are considering a possible push for a tax increase. Operators currently pay 15%, which is low compared to other states.

It was also revealed that lawmakers are being cautious in case adjustments are needed if the industry begins to impact commercial casinos negatively. Lawmakers also want to ensure players are protected and addiction does not become an issue among online gamblers.

Thankful for Five Years

Even though the reauthorization is not ten years, operators, and shareholders are thankful that at least some time is allowed for the industry to continue. The Chamber of Commerce of Southern New Jersey thanked lawmakers for abandoning the two-year idea. The adjustment allows for the iGaming industry to grow and thrive with a five-year security.

Payment provider Sightline Payments was also happy with the outcome. The company was the first digital payments provider to launch in New Jersey, and they commended lawmakers for committing to ensuring that NJ remains a leader in digital iGaming.

The law applies only to online casino gaming, since it was authorized in 2013. Sports betting does not apply since it was added in 2018. Operators now have through 2028 to continue offering online slots, table games, video poker, and more before a new time frame will need to be considered.

A Thriving iGaming Industry

New Jersey relies heavily on the iGaming industry, as the casino bets bring in tens of millions monthly. Since its start in 2013, the industry has generated over $6.2 billion in earnings. The industry continues to grow year after year and commonly reaches new milestones and records in earnings.

Over the past few years, how much the state relies on gambling revenue has been revealed. When the COVID-19 pandemic began in 2020, casinos in Atlantic City were shut down. This left operators with no way to earn retail revenues. Thankfully, the iGaming sites could remain open, and were able to flourish.

Since the onset of COVID-19 and the years that have passed, the iGaming industry has continued to thrive. Millions of people access top-rated sites regularly to enjoy slots, table games, and other types of content.

Operators constantly update platforms, offering new promotions and incentives to maintain their player base. A great deal of reinvestment goes into the industry, as operators know players are constantly looking for something new, be it with games or technology.

What’s Next for NJ Online Casinos?

It will be interesting to see how the industry functions within the next five years and what adjustments are made once the 2028 deadline draws near. Will the time frame be adjusted, or will we see a wholly different format for the industry?

Posted in: iGaming Regulatory & Industry Online Casino