ATLANTIC CITY, N.J. (AP) — In the 10 years it has been operating in New Jersey, Internet casino gambling has generated nearly $7 billion in revenue for casinos and their affiliates and sent more than $1 billion in tax revenue to the state treasury. , helped keep Atlantic City’s nine casinos afloat during the COVID-19 pandemic shutdown.
So why wasn’t it more widely available across America?
Currently, only six states offer Internet casino gambling: New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia. (Nevada offers Internet poker, but not online casino games.) Rhode Island has passed an online casino bill, but it is not expected to go into effect until March.
Casino operators, online gambling companies, analysts, and elected officials cite several reasons why they believe casinos have not yet expanded more broadly. Among them are concerns that Internet gambling will drive gamblers away from physical casinos (which analysts say are unfounded), a higher-priority effort to approve sports betting; Almost 90% are done online in two-thirds of states.
Supporters expect more states to introduce online casino gambling soon, in part as a wave of federal pandemic relief funding winds down and states once again look for new sources of tax revenue. It says that there are.
internet gambling “It stands out as the most lucrative source of revenue from any game launch in history, and New Jersey is ‘Exhibit A’ of that success.” said Howard Glaser of Internet gambling technology company Light & Wonder. He predicted that dozens of states would adopt it in the near future.
But Chris Krafcik, managing director of gambling analytics firm Eilers & Krajcik, said some states may be hesitant to move forward with Internet casinos, and some lawmakers are He said Internet casinos may be viewed as a more serious, high-stakes form of gambling than online sports betting. Another factor is competition from online giants like DraftKings and FanDuel, which control nearly half of the US online casino market.
Krafsik predicted “Only a few states.” We plan to legalize online casinos by the end of 2027.
“Online casinos have always been a difficult sell.” Krafcik said.
One of those states may be Indiana. In Indiana, an online casino bill died in February, largely due to concerns that it would harm the state’s existing physical casinos. The state Legislative Services Agency report warns: “Loss of tax revenue due to relocation of gaming activities at brick-and-mortar casinos and racinos.” $134 million to $268 million annually. Lawmakers plan to try again next year.
Elaine Valaster from New Jersey has been playing Internet slots on the BetRivers.com site for about three years. Free Bingo He also liked the games and the chat feature, and was able to make some real-life friends.
“There’s a lot to do there.” said Valastar, who once won $14,000 online. “I’ve met people I go to lunch with. You laugh and have a great time.”
New Jersey’s legal internet gambling ranks first in the nation in terms of taxes paid to the government and the amount of money earned by gambling companies. According to the American Gaming Association, the gambling industry’s national trade group, Internet gambling generated a total of $16.3 billion in revenue for states that offer Internet gambling.
New Jersey has generated $6.91 billion since November 2013 through September of this year. Pennsylvania has generated $4.34 billion since July 2019. Michigan has generated $4.1 billion since January 2021. Connecticut has generated $615.3 million since October 2021. West Virginia has generated $294.7 million since July 2020, and Delaware has generated $59.1 million since November 2013.
In terms of assessed tax revenue from Internet casino wagering during the same period, Pennsylvania generated $1.83 billion. New Jersey and Michigan each generated $1.03 billion. Connecticut generated $88.4 million. West Virginia generated $44.2 million. Delaware generated her $19 million.
For casinos, Internet gambling is not exactly a windfall. Casinos must share a portion of winnings from online casino games and sports betting with third parties, including technology platforms. But that extra money came in handy in 2020. At the time, Atlantic City’s nine casinos were closed for three and a half months at the beginning of the coronavirus pandemic, with the only money coming in from internet gambling. Most sports were shut down. Similarly, there was little to bet on.
Internet gambling, which began in New Jersey on November 25, 2013, has exceeded most expectations.
“The amount of stakes, the interest people have, and the excitement surrounding it as an entertainment option demonstrate the power and influence of the internet.” said David Rebak, director of the New Jersey Division of Gaming Enforcement. “We were able to do it in a responsible and professional manner to avoid any embarrassment or scandal.”
Initially, there were concerns that Internet gambling would eat into the money that brick-and-mortar casinos could earn from people physically on-site. But that proved not to be the case.
Jane Bochnewicz, director of Stockton University’s Lloyd Levenson Institute, who studies the gambling industry in Atlantic City, said that in most states, brick-and-mortar gambling revenue is growing, albeit at a slower pace. He pointed out that it is growing in line with income.
Richard Schwartz, CEO of Rush Street Interactive, agreed that the two complement each other.
“New Jersey has proven that.” said Schwartz, whose company operates the BetRivers and PlaySugarHouse platforms. “Casino revenues have stabilized post-pandemic, and online revenues have set new records.”