Photographer: Anthony Kwan / Bloomberg
Photographer: Anthony Kwan / Bloomberg
An increase in online gambling helped lift New Jersey’s tax collections in a year that was disastrous for the casino industry, giving the state some relief in times of budget crisis.
Casinos, racetracks and online gambling providers are generated $ 302.7 million in tax collections for the state in 2020, up from $ 300.4 million a year earlier, according to data released Wednesday by the state Department of Gaming Enforcement.
The pandemic of coronavirus surfaced at New Jersey casinos last year, shutting them down for nearly four months. Although they started reopening in July, gamblers are only slowly returning. Nine state-owned casinos generated $ 1.5 billion in total gambling revenue, down 44% from the previous year.
Against that background, online fundraising was a way of life. Revenue from these bets – including games like poker and blackjack, as well as virtual slot machines – doubled to $ 970 million. Sports betting, which was partially hurt by a live sports shutdown earlier in the year, was still climbing 33% to $ 398 million.
The numbers may be closely monitored by legislators in states like New York who are considering the expansion or introduction of online wagering.
While the increase in revenue from internet keepers did not make up for what was sold in corporate casinos, the tax collections were larger due to online revenue charged at higher rates. Traditional casinos are taxed at 8% of sales. Online games have a 15% rate. Sports players are charged at 8.5% if they are placed in casinos and 13% if they are posted online.