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New Jersey Revising Tax Estimates For Online Gambling

An Extra $34 Million Will Come In Thanks To Web Games

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The New Jersey online gaming industry has been steadily growing since its inception in late November of last year.

Despite this, the state is revising some of its projections on tax revenue from the new games. To put it simply, some predicted that the games would be more lucrative right off the bat than they have proven to be.

Early predictions were that more than $1 billion would be reaped by the casinos from online gambling during fiscal year one. That would have netted the state around $180 million in extra tax revenue.

According to the most recent reporting from The Star-Ledger, the state now estimates that an extra $34 million in tax revenue will be collected from the casino industry and put into state coffers, thanks to the online games and whatever positive effects they have on brick-and-mortar action, in the fiscal year ending in June.

Just last week, the state said that casinos incurred $15.9 million in gaming taxes for February, reflecting eight percent of taxable casino gross revenue and 15 percent of Internet gaming gross revenue. Online gaming revenue for the month crossed the $10-million mark.

“We were told by industry at the time that the introduction of online gaming would help energize Atlantic City’s ongoing recovery,” state Treasurer Andrew Sidamon-Eristoff said last month, reported the Star-Ledger. “We’re pretty bullish on this in the medium-to-long term. But clearly, this hasn’t met our expectations for the first fiscal year.”

Nearly $3 million in tax revenue has come from online gambling alone from late November to the end of February. Hence, the massive revision down from the $180 million.

Atlantic City has 11 casinos now, after one closed earlier this year.

More than $5 billion in casino revenue was recorded in a record-setting 2006 for Atlantic City, but now the casino industry is sized at less than $3 billion.

In addition to New Jersey, Nevada and Delaware have legalized online gambling.

 
 
 
 

Comments

Zack2
over 7 years ago

I love how the experts predicted a 1 billion revenue for NJ online poker. As a vocal nj resident, the online poker world is not as glamorous as they predicted. Ever notice that there is not ONE single article about all the flaws and technical problems that ALL of the sites are having? The news has been all positive ( exception of the revenue not being anywhere near what they thought)and although i cant blame them for that, the people need to know all the news. All of the sites have problems since their inception that have not been fixed. Establishing a location that can be confirmed by these sites has been a huge problem for these websites. You can be sitting in NJ, but the poker website will tell you that your IP is coming out of NY. Depending on where you live, one website might work for you while another one wont. Instead of fixing these problems by using another way to confirm location or improving the software, these poker sites continue to take our money and put it into their pockets instead of back into the product. Makes me upset because Pokerstars would never release a product with all the bugs and software that these sites currently have. The impression is these companies, Party Poker , WSOP, UCasino, just wanted to release a product onto the market fast enough without fully testing their product. To top it off some of the customer support for these sites, one told a friend to pack her bags and move since they couldnt find her, are just horrible. Clearly chose to outsource their customer service instead of keeping the department in NJ and creating jobs.

The experts predicted 1 billion because they assumed that the online poker world would return to what it once was. Where any day of the week could change your life with a nice win. But that was Pokerstars. That was professionalism. Their product was sound with reputable names to back them up. No professional poker player is playing on these sites. Well, some are on these sites, but if your used to making a grand a day, those games are long gone. Any poker player who makes enough online will continue to play in mexico or canada than USA because they are going to get destroyed in taxes. You will never see Daniel, Ivey, Dwan or any other recognizable name playing US online poker. If your a college kid, average joe with a family, or new to the game, these sites are perfect for you. Numerous 1,5,10,20 dollar tournaments daily made for people with average bankrolls. In the end these sites can only profit so much. If nj was smart they would hook up with the rest of the world before any other state does. But the site to partner with, PS, is being cock blocked from hooking us up with the rest of the world.

Overall the feel is all about money and not the players. the sites will attract you to play but once they have you and your information they could care less about customer satisfaction. I just dunno how you can release a product that is not fully developed, that involves customers spending a lot of money, and not have a single article about it.

 
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