New Jersey lawmakers are undergoing the process of reauthorizing online gaming in the state and the most recent plan calls for extending iGaming’s legalization for another five years.
That move comes after some lawmakers proposed a two-year authorization while many in the industry favor a 10-year plan. No explanation was given for the original two-year proposal, according to the Associated Press, and those in the industry viewed a two-year extension as a major hindrance to additional investment from online gaming firms. Some believe plans to potentially raise tax rates on the industry at some point may have been part of the agenda.
“There was some speculation among Atlantic City casino and political officials that the move might represent potential leverage over the city in terms of possibly raising the amount of gambling taxes collected by the state in the future,” the AP notes.
More Details on New Jersey Online Gaming Reauthorization
The Garden State was at the forefront of online gaming in the U.S. when the state legalized the industry in 2013. The state initially allowed online casinos and poker. Online poker’s legalization in the state came after the federal government cracked down on the “wide open” virtual card playing as part of the wider international platforms.
The state also sued to overturn the Professional and Amateur Sports Protection Act (PASPA) in 2014. The law was a virtual federal ban on wagering on sports outside of the state of Nevada. New Jersey was ultimately victorious and PASPA was overturned in 2018 and legislators quickly legalized sports betting, including online wagering.
The reauthorization of NJ Online Gambling allows operators to get a sense of stability as they continue to grow and expand. Industry observers were hoping for a 10-year extension but were pleased lawmakers at least made the extension to five years.
“The Chamber of Commerce of Southern New Jersey is incredibly pleased that the General Assembly shifted away from a drastic and unexpected two-year internet gaming reauthorization through 2028,” the group noted in a statement on Twitter. “Although not the 10-year window the bill’s sponsor originally intended, this adjustment still allows for the sports betting industry to grow and thrive in New Jersey with a five-year security in its operating ability.”
However, some in the industry still see the five-year extension as unfavorable and argue that it still hamstrings operators.
“The reauthorization of the internet gaming bill for 10 years is vital to the continued success of the gaming industry in New Jersey and the programs that are supported by the taxes collected,” Mark Giannantonio, president of Resorts casino and the Casino Association of New Jersey, told the AP.
The state taxes live casino gaming at a rate of 8%. For online gaming, the rate for casino and poker is set at 15% and 13% for Internet sports betting. Gaming operators have collected more than $6 billion since online gambling was legalized in 2013, excluding sports betting.
Iowa Could See New Casino in Cedar Rapids
In other gaming news, downtown Cedar Park, Iowa, may eventually be home to a new casino. City officials are considering devoting a piece of land in the area for the potential gaming facility.
“The Cedar Rapids City Council next month will consider an option-to-purchase agreement through Dec. 31, 2025, with the Cedar Rapids Development Group, the city’s preferred casino developer, as well as preliminary terms of the potential facility,” the Cedar Rapids Gazette notes. “If approved, this deal would set aside city-owned property between F and I Avenue NW and First and Fifth Streets NW to be purchased and redeveloped into a casino and entertainment complex.”
Iowa is already home to several casinos – from Council Bluffs and other cities on the western border with Nebraska to the Des Moines area to the eastern border with Illinois and several other locations around the state. Cedar Rapids has about 130,000 people and is located in the eastern half of the state, about a two-hour drive from Des Moines.
Cedar Rapids Development Group is mainly composed of local investors and would partner with the Linn County Gaming Association for the project. The group would pay the city $165,000 for the option to purchase the property.
However there are still hurdles to get past including a state moratorium on granting new gaming licenses through June 2024. If the casino eventually takes shape, plans call for at least a $150 million, 125,000-square foot gambling and entertainment venue. That would include 45,000 square feet of gaming along with restaurants and event space.
The city would create a Community Betterment Fund for economic development, housing, and other needs with monthly payments financing the program. More wrangling is expected in the coming months to see the casino come to fruition.
