New Jersey, with the passing of a bill called the “Interstate Internet Gambling Bill,” has legalized online gambling. Online casinos can be run by the casinos of Atlantic City. The bill had a criterion that the computers and equipment used for running the online casinos must be present at the premises of the casinos with adequate security. An economic study conducted in the state showed that the passing of the bill would bring about additional jobs as well as revenue to the state and its people.
The Study
The Interactive Media Entertainment and Gaming Association is an association founded in the year 2007 in order to foster better relationship between the online gambling industry and the government. This association conducted a study. The study was called “Potential Economic and Fiscal Impacts of the Proposed New Jersey Intra-State iGaming Bill”. The study estimated an annual casino income of more than seven billion dollars. It also estimated that the bill would create jobs for around 57000 people. This is in the long run. In the short run, the bill is estimated to create 2000 jobs and bring in revenue of more than 200 million dollars every year as gaming yield. Short run benefits also include annual personal income of nearly 90 million dollars and more than 40 million dollars in tax revenue for the state of New Jersey.
The long run personal income per year should come to 2 billion dollars and tax revenues amounting to more than 400 million dollars. The bill is also expected to increase the investment in the state.
The study states that New Jersey will have the first mover advantage as it is one of the first states in the country to legalize online gaming. That would give the state’s casinos more or less a monopoly in the country. According to the study, the casinos in other cities who would want to start online gambling will have to set up hub in Atlantic City and this is sure to increase the tax and other revenues in the state. The 57000 jobs the bill is expected to create, especially in the high-tech sector, will raise the personal income of many people.
The casinos of Atlantic City have been slipping down in revenues since the economic slump. The state debt has been graded from AA to AA- by one of the leaders in the financial market intelligence firms, Standard and Poor, a part of McGraw-Hill Group, recently. This makes New Jersey one of the poorest states in the US. The state also faces a budget with a deficit of approximately eight million dollars. The state governor has been trying to bring up the state and put it back on the map. The bill legalizing online gambling will definitely contribute to this in a big way. And so the signing of the bill (the final signature from the governor) is likely to be inevitable. People of the state and casinos believe that there will be no going back on the bill now and New Jersey will achieve new heights in revenues soon.
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