The New Jersey Senate’s Wagering & Tourism Committee voted 3-to-1 to approve the Intra-State Online Gaming Bill out of committee, setting the stage for a vote by the full Senate. Under the terms of the bill, casino operators in Atlantic City would be able to apply for a license to offer Internet-based versions of all the games currently permitted in their land-based operations. Poker, blackjack, baccarat and other games would be available online only to New Jersey residents that are 21 years of age or older.
“Though we’re not across the finish line yet, the committee vote is significant progress,” said iMEGA chairman Joe Brennan Jr. “We’ve gotten to this point by making this debate about more than taxes from gaming revenue, which is a bit one-note. Instead, we’ve made a significant case for job creation, capital investment, and the opportunity for New Jersey to become the national and global hub for this industry. And those numbers make this a compelling option for New Jersey legislators to consider.”
iMEGA commissioned an economic development study by eConsult, a Philadelphia-based firm aligned with the University of Pennsylvania’s Wharton School of Business, to provide a conservative baseline projection of the economic benefits for an in-state only system, as well as a baseline should New Jersey establish itself as the hub for the industry nationally and internationally.
With the creation of an intra-state internet gambling system, eConsult estimated that New Jersey could see the creation of up to 1,900 job, $250 million in annual gross gaming revenue and up to $55 million in annual state gaming taxes. Projecting outward, eConsult estimated that conservatively, New Jersey stands to realize the creation of up to 57,000 jobs, $7 billion in annual gross gaming revenue and up to $472 in annual state gaming taxes should it establish itself as the dominant hub for the industry.
“This industry has to offer more than just an opportunity for the state and operators to take revenue out of the population,” said Brennan. “It can have a more direct, positive affect than just increased tax revenues for the state to utilize for services. Being an engine for real job creation and attracting investment, and the opportunity to be the global hub for a high-tech industry is a much more meaningful opportunity for legislators to consider.”
Point-Spreads.com discussed this topic with Joe Brennan in Prague last month at the launch party of online gaming news portal CalvinAyre.com.
