New Jersey to Receive Increased Betting RevenueJake Cooper | 15 Oct 2018
As of December 2018 the Casino Reinvestment Authority (CRDA) will be receiving an income boost thanks to New Jersey’s recently legalised sports betting.
The New Jersey Governor, Phil Murphy, has just approved a bill that will direct 1.25% of sports betting revenue to the authority. The funds will be used to finance both public and private projects within the NJ state and will be managed by the CRDA.
PASPA Ruling Results In New Revenue Avenues
In June of this year, the Professional and Amateur Sports Protection Act of 1992 (PASPA) which made sports betting illegal was withdrawn by the Supreme Court. The PASPA withdrawal resulted in individual states being allowed to decide on and enforce their own regulations regarding sports wagering.
New Jersey decided to regulate its market in June and it has already generated $16.5 million in the state. Under the new bill, 1.25% of this and future revenue will belong to the CRDA.
About The Casino Reinvestment Authority
Founded in 1984 the CRDA has spent over $2 billion on projects in New Jersey. The organization used to receive some of its funding from the casino industry, however in 2006 these funds were redirected to help pay Atlantic City Debt. This resulted in an almost $22 million loss in revenue for the CRDA.
The CRDA’s purpose is to reinvest casino investment alternative tax into the state with a focus on positive improvement for the residents of Atlantic City. In addition to the 1500 houses the organization has built, it has invested in over 400 projects to improve the culture and social landscape of the state.
The new bill will allow the CRDA to continue to work toward and contribute to improving the lives of state residents.
NJDE Thrilled By Future Prospects
The NJDE or New Jersey Division of Gaming Enforcement’s director David Rebuck has shared his excitement at the revenue reported to date. He believes that the September figures will be outstanding due to the start of the NFL season. Rebuck shared his enthusiasm with delegates attending the G2E Expo in Las Vegas this week.
According to the August report released by the New Jersey Division of Gaming, Total Gaming Revenue increased by 24% when compared to the same period in 2017. Sports betting contributed approximately $10 million, of which $3 million was from online betting to total $303 million.