Profits in New Jersey’s online gambling industry are turning out to be much lower than officials initially estimated.
In the state budget signed last July, Governor Chris Christie’s administration’s estimated the newly legalized online gambling sites in the US state of New Jersey would generate $160 million for the entire fiscal year. However, a financial report released last month by the state treasurer predicts total revenues will only reach about $34 million.
Despite the numbers being much lower than expected, adopting the new American gambling laws still seems like a good decision, as the state’s profits from taxing online casinos are following an upward trend.
The state’s internet gambling industry has produced about $10.3 million in February, reporting an 8.9% increase from January. About 40% of that total profit went to Borgata.
Good news, bad news
Revenues in the American internet casino industry are increasing on a month-to-month basis, and this has convinced several other states to follow New Jersey’s example. California has already taken legal steps towards regulating online poker and Massachusetts officials have also announced changes to their current laws, to allow virtual casinos.
Christie was expecting annual revenue to reach about $1.2 billion. Online gambling in New Jersey is only four months old, but it’s becoming more and more obvious that the target won’t be met. Now the governor has told local lawmakers that his administration can’t estimate how much money the state will get from the internet casino business.