However, the law may not allow for such massive license extensions. Online casinos in New Jersey, which are the most lucrative interactive gambling operations in the United States, would like to see their licenses extended for another ten years, but the best the state can do as of right now is offer them two years.
Taking License Extensions Two Years at a Time
This makes license holders uneasy as the travails of constantly looking out for their license are not something a business needs operating in the region’s most competitive market. The lack of extension is not for want of trying. An Assembly committee did vote on the measure on Tuesday, but it introduced changes that changed the licensure period to just two years instead – not least to keep stakeholders on their toes and make them more focused on running their businesses by the book.
However, it’s not all bad news. According to Mark Giannantonio, president of Resorts Casino Hotel and of the Casino Association of New Jersey, who was cited by the Associated Press, the reaffirmation of the online gambling bill is an important step forward for the state. Of course, nobody really expected online casinos to just disappear, as they are a vital source of tax revenue, job opportunities, and not least – a buoy that saved the casinos from floundering during the COVID-19 pandemic.
All in all, the casinos did not object to the reduction in the applicable period of their online licenses as the state is unlikely to undertake any abrupt changes that could lead to disruption of the industry.
Online Gaming Revenue Does Not Tell the Full Story
In the meantime, industry insiders used the occasion of the license extension to comment not so much on licensure as much on the fact that oftentimes the revenue that comes from iGaming is not necessarily proportionate to how much money the operators make.
Atlantic City’s casinos collaborate with any third parties and pay developers and platform suppliers to run games and operations. In fact, 70% of all revenue goes to partners in the online gambling sector in New Jersey. In the meantime, Rhode Island became the latest state to legalize online casino gambling, joining Garden State, Michigan, Delaware, Pennsylvania, Nevada, and West Virginia.
