
In 2013, New Jersey legalized state-based online gambling. The decision to license and regulate online gaming companies came after the courts ruled that the Wire Act and Unlawful Internet Gambling Enforcement Act (UIGEA) don’t apply to instate wagers. In other words, if gambling is conducted and contained within state lines, it doesn’t breach any federal laws.
New Jersey was one of the first states to enact its own online gambling laws alongside existing laws that permitted land-based casinos. Being one of the first US states to regulate online gambling gave New Jersey the jump on its peers. However, even with time on its side, the Garden State still remains a standout performer compared to the five other states that offer similar provisions.
One of the main reasons cited for the growth of New Jersey’s online gambling market over the last decade is its accessibility to players, specifically through mobile apps and their associated offers. Players have the ability to create accounts, claim first deposit match offers, and play games at any time via their mobile. As long as they enable their device’s geolocation tracker to confirm they’re within state lines, world-class casino gaming options are never more than a few taps away.
A Buoyant Industry that Benefits the Economy
This accessibility has created a multi-billion dollar industry. In February 2023 alone, online gaming revenue hit $8.6 million. Combine that with takings from Atlantic City’s casinos, and gambling revenue for February hit $461 million. That’s 12% more than the same period in 2023, so it’s clearly an industry on the up.
For players, the benefits of having regulated operators within easy reach are numerous. For example, New Jersey’s licensed operators are required to provide safe software and fair games. What’s more, all operators must make responsible gambling tools easily accessible. This means players always have access to advice and support. Beyond the benefits to players, regulation means the state gets a cut of the industry’s fortunes.
As per the official revenue reports from the New Jersey Division of Gaming Enforcement, February’s online gaming revenue generated $2.5 million in tax for the state. Although the monthly figures fluctuate throughout the year, the state is making over $20 million in tax revenue from online gambling operators every year. This money goes to local schools, charities, and other projects. This tax rate could increase if a bill submitted by Senator John McKeon is approved.
However, even at the current rate of 15%, the state is still getting a financial boost from the online gambling industry. At a time when economies are struggling, this can’t be overlooked. What’s more, if the rate does increase to 30%, as McKeon wants, it would provide an even bigger boost to the economy. This, combined with the fun players can have in a safe and secure way, and there are clearly benefits to regulated online gambling. So, even if New Jersey’s land-based gambling scene isn’t as buoyant as it once was, the state is still a gambling hub thanks to online operators.