A bipartisan bill moving toward final approval in the Legislature this month would allow online casino gambling to remain legal for another 10 years in New Jersey, ensuring millions of dollars in revenue can continue flowing into state coffers.

To maintain what advocates say has become a vital attraction for Atlantic City casinos, lawmakers must take action within a matter of months because the law that first legalized online casino gambling in New Jersey in 2013 did so only on a temporary, 10-year basis.

The deadline for renewal is looming in November, according to the legislation, which a key state Assembly committee approved last week.

The same bill is scheduled to be reviewed by members of the Senate’s budget committee on Monday and could make it to Gov. Phil Murphy’s desk for final consideration by the end of the month.

Just like the original law that legalized online casino gambling, the new legislation would not make it permanently legal, but would again allow it to occur for another 10 years.

Online gaming goldmine

Advocates who want to see online casino gambling remain legal in New Jersey say it has provided a lifeline for thecasino industry in Atlantic City, especially during the economic shutdowns ordered by Murphy throughout the early months of the COVID-19 pandemic.

That point was repeated during the latest hearing on the issue in Trenton, where several individuals and groups offered their public support for the 10-year extension to members of the Assembly’s State and Local Government Committee.

“We believe this has been just a huge help to the casinos, particularly during the pandemic,” said Hilary Chebra, manager of government relations for the Chamber of Commerce of Southern New Jersey.

Meanwhile, at the state level, tax revenue from online casino gambling has steadily grown after initially generating only modest sums.

In more recent years, it has become a more than $250 million source of annual tax collections for the state via the Casino Revenue Fund, according to budget documents.

Enabling addiction?

As the renewal measure is advancing in Trenton, however, concerns have also been raised in recent months about increasing rates of gambling addiction and whether more should be done at the state level to help problem gamblers. One concern is that they no longer have to drive to Atlantic City to place their bets, including on sporting events after such gambling has also become legal in New Jersey.

A bill also moving through the Legislature in recent weeks calls for the establishment of a “diversion court” pilot program to help improve treatment for people diagnosed with a gambling addiction who have committed a crime because of their disorder.

The pilot program would be established in one northern, one central and one southern court district. As part of the treatment, it would require the person seeking treatment to pay restitution, and it would be managed by a mental health professional, such as a problem-gambling counselor or a licensed psychologist, according to the bill.

The law that first established legalized online casino gambling in New Jersey was enacted in 2013 by then-Gov. Chris Christie. At the time, the casino industry in Atlantic City was still reeling from the effects of the 2007-2009 Great Recession, as well as facing new competition after casino gambling was legalized in neighboring states, such as New York and Pennsylvania.

Under the current law, betting sites are required to operate in partnership with brick-and-mortar casinos in Atlantic City.

Those relationships would still be required under the renewal legislation, which must be adopted before the November 2023 deadline to ensure online casino gambling can continue uninterrupted in New Jersey through 2033.

Behind the bill

The bill seeking to renew the legalization of online casino gambling was first introduced last year. During an initial committee hearing, Assemblyman Don Guardian (R-Atlantic), a former Atlantic City mayor, said online gambling had become “an integral part of gaming in New Jersey.”

During her testimony before lawmakers last week, Chebra indicated that a total of 31 online gambling websites affiliated with the city’s nine casinos are now operating in New Jersey.

“These gaming websites have been a huge asset to the region, particularly in South Jersey,” Chebra said.

Under the 2013 law, the state taxes gross revenue from internet casino gambling at a rate of 15%, and a portion also goes to the Atlantic City-based Casino Reinvestment Development Authority, according to the state Division of Gaming Enforcement.

The latest quarterly revenue totals released by the state Division of Gaming Enforcement indicated net revenues for the nine casinos increased slightly during the first quarter of 2024, compared with the same period in 2023.

Moreover, state budget documents forecast overall state Casino Revenue Fund collections will increase to $526 million during the new fiscal year that begins July 1, with internet gambling collections projected to rise to $287.7 million during the 2024 fiscal year.