Will NJ Recent Upswing in Online Gaming Convince Other States to Join In?

by Jim Hall

New JerseyNew Jersey continues to do well in online gaming, so will it be enough to convince other states to pass legislation?

Currently in the United States, there are only three states that offer some form of online gaming for real money, Delaware, New Jersey and Nevada. When it comes to who performs the strongest, there is no comparison. New Jersey has propelled forward as the top operating state when it comes to online gaming. With the most recent successful months of revenue earnings, it has many wondering if the performance of New Jersey online casinos and poker rooms will push other states to pass legislation.

Several States Considering Legislation

So far this year, there are several states that are considering some form of online gaming. From Pennsylvania and New York to California and even Michigan, several states are looking to enter the blossoming industry. However, it seems that each state is not willing to push legislation forward to offer such gaming options.

When New Jersey and the other two states began offering real money casino gaming online, other states were watching. Legislators wanted to see if the states benefited from revenues, if player security would be an issue, etc. Basically, every concern has been alleviated and New Jersey has been the pawn so to speak as other states have been able to see what works and what doesn’t.

New Jersey had trouble with geolocation and payment providers in the beginning, but now and over the past few years, has offered online gaming seamlessly. The state has proven that players want access to casino and poker games and that it can be provided effectively and earn a profit.

For March, the state actually earned just over $21 million in online gaming revenues which is a new record for earnings, and the first time more than $20 million was generated. This is just another sign to show other states that online gaming is working and should be considered as another source of revenue.

New Jersey has the Upper Hand

For now, New Jersey is sitting pretty as no other state in their vicinity offers online gaming. Pennsylvania and New York, along with others are considering such gaming but cannot seem to come up with a plan that passes muster with legislators. So while these states continue to miss out on revenues they could be making, New Jersey is raking in the profits. The longer the other states wait to become involved, the more established the online gaming market of New Jersey will be.

So What’s the Problem?

You may be wondering what problems are keeping other states from passing online gaming legislation. It seems the issues are quite different depending on where you look. Some states are more conservative so legislators are not quick to pass a bill that would create more gambling while other state have so many interested parties in the mix, there is no consensus as to how online gambling should be handled in their given state.

In Pennsylvania, gambling expansion is being considered on many levels and this seems to be why legislation cannot pass. The state needs to fix the local share tax, is considering online gaming, slot expansion and more. With so much to consider, the state is basically at a standstill.

Massachusetts is also considering gambling and has created a special group to explore an expansion into the online realm. However, the Lottery of the state feels that they should be able to offer online gaming first. So this has gotten in the way of legislation moving forward.

Each state that is considering online gaming has something in the way that is slowing down the progression of legislation becoming law. Yet, there is still potential for other states to become involved, perhaps passing legislation later on in the year. For now, it will be interesting to watch as several states attempt to become the next to offer online gaming in the US.