Referring to the New Jersey Senate bill he co-sponsored, State Senator Raymond Lesniak said of the Internet gambling legislation: “We want to take the lead, we don’t want Nevada to take the lead.”
The bill cleared the Senate’s Gambling Committee this week, and it appears likely to eventually clear the entire Senate. The tax revenue received from casinos in New Jersey has fallen by half since 2005, due to the dramatic increase of competition for gambling dollars in the Northeast. In past years, New Jersey was really the only major casino destination for East Coast gamblers. Today the situation is sharply different with casinos open in many neighboring states. New York is also planning to allow seven casinos across the state which will further dilute the pool of visitors for Atlantic City.
The new gambling bill in New Jersey would set the tax rate for online wagers at 20 percent, dramatically higher than the 8 percent current tax rate for casinos.
Gambling online could be launched in New Jersey by early 2013. Stay tuned!