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NJ online casinos: The how, what and why
New Jersey Governor Chris Christie signed A2578 into law on February 26, 2013. It legalized online poker and casino sites in New Jersey. The bill had broad support in both chambers of the New Jersey Legislature. It passed the Senate 35-1 and the Assembly 68-5.
There was a 5-day test period that started on November 21, 2013. Online action officially launched on November 26, 2013.
The only companies that are allowed to operate online gambling in New Jersey are the Atlantic City casino owners – the companies behind land-based operations like Caesars, Harrah’s, Resorts, and the Borgata.
New Jersey taxes online gambling revenue at a rate of 15 percent of gross gaming revenue. This is nearly double the 8 percent tax rate imposed on Atlantic City’s gross gaming revenue.
Atlantic City casinos are also required to reinvest 1.25 percent of their brick and mortar and internet gaming revenue into capital projects to create jobs and benefit Atlantic City.
All gaming servers for online casino and poker play must be located in Atlantic City to comport with a requirement of the New Jersey Constitution that gambling only take place within Atlantic City. Online casino and poker action is available to anyone that is physically located in New Jersey at the time of play.
There is no residency requirement. Visitors are welcome to play at NJ’s regulated online gambling sites. And you can set up an account and handle all of the banking related to your account from anywhere in the U.S.
Regulation of online gambling achieves three key aims for New Jersey.
The first is to generate tax revenue for the state, which online gambling has already proven quite adept at doing. Nearly $20 million in taxes directly stemming from online gambling were collected by New Jersey in 2014, and that number certainly increases substantially when you consider the taxes driven by employment and economic activity surrounding legalized online gaming.
The second is to support New Jersey’s land-based casinos. It’s no secret that revenue from brick and mortar gambling in Atlantic City has taken a hit in recent years. NJ fell to number three in the U.S. in terms of gaming revenue for the first time in 2012. Pennsylvania, where many former Atlantic City customers were based, overtook the number two spot that year.
Atlantic City casino revenue has fallen every year since 2006. It is down nearly 50 percent from its peak. But online gambling – which is restricted to land-based casinos and their partners – provides a source of growth, generating some $150 million in direct revenue to date and giving Atlantic City casinos a new way to reach customers.
The third aim is to provide consumers with a truly safe and secure online gambling experience. Illegal offshore casinos have stolen millions of dollars from American customers. And players at such sites have no guarantee that games are fair. New Jersey regulations for online casinos guarantee the safety of player funds, and all games offered at NJ online casinos are full tested and vetted by the cutting-edge lab at the DGE.
NJ online casinos in 2016
In the three years that NJ’s online casinos have been up and running, Atlantic City casinos have enjoyed the benefits of an economic tool that not only provides an additional revenue source, but also a way to motivate new customers to come to the land-based casino properties.
Online casino play in NJ has enjoyed steady growth through 2016. At one point, the state managed to set revenue records in six consecutive months. Industry observers expect that the growth will continue throughout 2016 (although summer months typically tend to bring a slight downturn for online gambling sites, and New Jersey’s online casinos are no different), and see room for expansion among the regulated online casino sites in the state well into 2017.
Currently the online poker market in NJ is hotly contested by three operators: WSOP, Borgata, and PokerStars.
On the online casino side in 2016, it’s a similarly tight battle, with Borgata, Caesars, Tropicana, the Golden Nugget, and Resorts all posting impressive revenue from online slots, roulette, and other games available at their internet gambling sites.
Online casino is a larger market than online poker, generating some six to eight times the revenue in an average month.
Get more facts about NJ online gambling with our special feature: NJ Online Gambling By The Numbers.
There you’ll find regularly-updated stats on job creation, total tax revenue, the biggest jackpots and other essential numbers behind the legal online casino and poker industry in New Jersey.
Questions about our relationship with the casinos featured on PlayNJ? Review our advertising disclosure.
Responsible online gambling
|NJ Online Casino Responsible Gambling Tools|
A complete breakdown of all the responsible gambling options at NJ's legal online casinos, including how to access and utilize all of the tools provided.
|DGE Self-Exclusion Registration|
Use this online form to opt out of all of NJ's regulated online gambling sites at once. You can also use the responsible gambling features of individual casinos to opt out at single casino or for custom periods of time.
Resources, research and a 24-hour talk line for information regarding responsible gambling, both online and off, in New Jersey. Call 1-800-Gambler.
Online casinos in NJ: 2016 fact table
|When did online gambling become legal in NJ?||February 26, 2013.|
|When did NJ's legal online casinos open?||The test period (also called "soft launch") started on November 21, 2013. The full launch occurred on November 26, 2013.|
|Who is responsible for regulating NJ online gaming?||The New Jersey Division of Gaming Enforcement.|
|What sites are legal and licensed by New Jersey regulators?||A full list of licensed sites is available here. Only sites connected to an Internet Gaming Permit issued by the NJ Division of Gaming Enforcement may offer legal online gambling in NJ.|
|How many legal online poker sites and casinos operate in New Jersey?||There are 15 authorized sites total.|
|How much tax revenue did New Jersey receive from regulated online gambling in 2015?||$22,354,469|
|How much revenue did NJ online casinos generate in 2015?||$149,029,795|
|How much revenue have NJ online casinos generated in 2016?||Through May of 2016, NJ's regulated online casinos have generated $78,414,058 in revenue in 2016. The total revenue to date from online gambling in NJ: $358,539,827.|
|What is the connection between land-based Atlantic City casinos and online gambling?||Only land-based casinos are eligible to receive an Internet Gaming Permit. An IGP is a necessary precursor to operating a legal internet gambling site in NJ.|
|What is the leading online casino in New Jersey by revenue?||In 2015 it was the Borgata with $ 45,699,249 in total revenue (casino and poker combined). The Borgata remains the overall leader in the market as of June 2016.|
|What's the largest jackpot paid to date by a NJ online casino?||$1,522,000, paid by Betfair on a Let It Ride Jackpot on February 23, 2015.|
|Where can I play using my mobile device?||Review our lists of mobile NJ online poker options and NJ mobile online casino options.|