NJ Online Gambling Taxes Just $40m For First Year?April 29, 2013 3:02 pm
Originally, the New Jersey state treasury estimated online gambling would be worth $1.2 billion in revenue during its first year, which after a state taxation level of 15% was applied, would leave $180 million in the state coffers.
However, according to revised estimates from two analysis firms, online gambling in New Jersey may only generate around $40 million in taxes for the state, significantly lower than the $180 million forecast by Governor Christie’s administration.
In total, the gambling analysis firms have estimated that casino games and poker could generate around $261.9m in gross gambling yield (GGY) during its first year, rising to $462.9m by the fourth year. These new, revised figures will surely come as quite a disappointment to New Jersey, whose casino industry has been in a slump since 2006.
In order to help raise its flagging economy, lawmakers had been fighting for years to get online gambling passed, which they only managed recently, thus opening up the possibility of the full range of Internet casino games, including poker. As Governor Chris Christie announced at the time: “This was a critical decision, and one that I did not make lightly…I am confident that we are offering a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole.”
Online gambling is now set to launch in the state sometime between June and November, but one factor which may give a boost to the revised downward figures, is whether or not PokerStars is given a licence to operate The Atlantic Club. The online titan would then be expected to give the state’s fledgling online poker industry a solid push.