Online gaming brings increased revenue, jobs to New Jersey
A new report analysing the effects of igaming in New Jersey has found that the industry is generating tax revenue, adding jobs and inspiring technological innovation.
The report, sponsored by the iDEA (iDevelopment and Economic Association), entitled Economic Impact of New Jersey Online Gaming: Lessons Learned, by researchers Alan Meister, Ph.D. of Nathan Associates and Gene Johnson of Victor, looked at financial and sociological data gathered since the 2013 regulation of igaming in New Jersey.
New Jersey’s igaming industry was found to have directly and indirectly generated $998.3m (€891.9m/£779.6m) in output from 2013 through 2016.
The igaming industry in the state also created 3,374 jobs, $218.9m in wages to employees, and $124.4m in tax revenue to state and local governments, including $83.5m in igaming taxes.
Jeff Ifrah, a gaming attorney and one of iDEA’s founding members said: “New Jersey’s experience provides valuable lessons for other US states considering iGaming legalisation in the future.
“The state’s operating environment and regulatory structure provides a portable model which can be modelled by other jurisdictions, bringing much-needed jobs and tax revenue.”
“New Jersey iGaming is also a success from a regulatory perspective, with some of the strictest iGaming regulation protocols in the world; these regulations guarantee that operators are accountable, and that players can trust that they will be protected.”
The study found that negative impacts, predicted by igaming’s opponents, such as a possible increase in underage gambling, money laundering, and fraud, were as yet unfounded.
This bodes well for other states such as California, Illinois, Washington, Massachusetts, Pennsylvania and New York that are considering regulation.