Bill Summary – FastDemocracy

LEGISLATIVE FISCAL ESTIMATE
                                SENATE, No. 3075
                             STATE OF NEW JERSEY
                              220th LEGISLATURE
                                             DATED: JUNE 14, 2023
                                                  SUMMARY
    Synopsis:                   Extends authorization for Internet gaming law to 2033.
    Type of Impact:             Ten–Year Revenue increase to the State General Fund, Casino
                                Revenue Fund, Casino Reinvestment Development Authority, and
                                City of Atlantic City.
    Agencies Affected:          Office of the Attorney General, Department of the Treasury, Casino
                                Reinvestment Development Authority, and City of Atlantic City.
                                       Office of Legislative Services Estimate
    Fiscal Impact                             FY 2024               FY 2025                 FY 2026
    State Revenue Increase                 $170.0 million        $305.1 million          $320.2 million
    Casino Reinvestment
    Development Authority                Up to $1.9 million    Up to $4.2 million      Up to $3.1 million
    Revenue Increase
    Atlantic City                             At Least             At Least                 At Least
    Revenue Increase                        $26.1 million        $46.1 million            $49.8 million
    The Office of Legislative Services (OLS) estimates that this bill will result in the continued
     receipt of Internet gaming tax revenues by the State, the Casino Reinvestment Development
     Authority, and Atlantic City through November 2033.
                                            BILL DESCRIPTION
    This bill extends the expiration date for the authorization to conduct games through the Internet
through November 2033. Under current law, the authorization for Internet gaming is set to expire
in November 2023, 10 years following the enactment of the original authorization.
      Office of Legislative Services                                    Legislative Budget and Finance Office
           State House Annex                                                    Phone (609) 847-3105
              P.O. Box 068                                                       Fax (609) 777-2442
      Trenton, New Jersey 08625                                                  www.njleg.state.nj.us
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                                                                  FISCAL ANALYSIS
EXECUTIVE BRANCH
      None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will result in the continued receipt of Internet gaming tax revenues
by the State, the Casino Reinvestment Development Authority, and Atlantic City through
November 2033 by reauthorizing the Internet gaming law. The current authorization expires in
November of 2023.
The OLS estimates that in FY 2024 if the Internet gaming law is reauthorized, the State will receive
an additional seven months, or $170 million in Internet gaming tax revenues and various fees that
it would not receive if the law were not reauthorized and that the Authority will receive an
additional $1.9 million. Atlantic City will receive an additional $26.1 million in pro-rated Internet
gaming tax revenues in FY 2024. The OLS assumes a five percent growth rate in gross Internet
gaming revenues over the next two years resulting in an estimated $305 million, and $320 million
in Internet gaming tax revenues and various fees in FY 2025 and FY 2026.
Internet Gaming Revenue
                                                               FY 2018   FY 2019   FY 2020   FY 2021   FY 2022      FY 2023         FY 2024         FY 2025      FY 2026
Internet Gaming Tax Revenue                                   $ 39,860 $ 52,486 $ 103,310 $ 177,411 $ 232,421 $       261,628   $     287,791   $     302,181   $ 317,290
Internet Gaming License and Compulsive Gambling Permit Fees   $ 1,750 $ 2,300 $ 2,850 $ 3,200 $ 3,450 $                 2,950   $       2,950   $       2,950   $ 2,950
Total State Internet Gaming Tax Revenue                       $ 41,610 $ 54,786 $ 106,160 $ 180,611 $ 235,871 $       264,578   $     290,741   $     305,131   $ 320,240
Internet Gaming Investment Alternative Tax                    $ 6,643 $ 8,748 $ 17,218 $ 29,569 $ 38,737 $             43,605   $      47,965   $      50,363   $ 52,882
    Casino Reinvestment Development Authority                 $ (6,643) $ (8,748) $ (17,218) $ (29,569) $ 2,700 $       3,500   $       3,200   $       4,200   $ 3,100
    City of Atlantic City                                     $ 6,643 $ 8,748 $ 17,218 $ 29,569 $ 38,737 $             40,105   $      44,765   $      46,163   $ 49,782
Current law authorized the imposition of an annual tax on Internet gaming gross revenues earned
by casinos in the amount of 15 percent to be paid to the Casino Revenue Fund and licensing and
compulsive gambling fees to be paid to the State. Current law also authorized the imposition of
an investment alternative tax of five percent to be paid to the State or 2.5 percent to be collected
by the Casino Reinvestment Development Authority for community and economic development
projects. Current law allocates the Investment Alternative Tax as follows until December 31,
2026: to Atlantic City for the purpose of paying debt service on certain municipal bonds and
general municipal purposes and maximum distribution amounts to the Casino Reinvestment
Development Authority ranging between $2.7 million in FY 2022 and $3.1 million in FY 2026.
    Section:                  Legislative Budget and Finance Office
    Analyst:                  Kimberly M. Clemmensen
                              Assistant Legislative Budget And Finance Officer
    Approved:                 Thomas Koenig
                              Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).
Statutes affected: 
Introduced: 5:12-95.33