With the June revenues now reported, the story of one of the most controversial revenue estimates in the history of the state can be finished. Internet gambling’s first budget year in New Jersey brought the state $10.7 million in revenue, less than 6 percent of the initial estimate of $180 million and even less than the $12 million projected by the Office of Legislative Services (OLS) in April.
After the huge miss, the administration has ensured it won’t miss the mark again, at least on online gambling, since it has opted to not provide an estimate just for this revenue. OLS is projecting revenue of $48 million; in order to hit that number, tax revenue would need to average $4 million a month – approximately 2.5 times the $1.57 million generated in June.
Proponents of internet gambling hoped it would help stabilize New Jersey’s casinos and possibly end up bringing new customers to Atlantic City. It’s clear from the pending closure of up to four casinos that internet gambling has not yet stopped the bleeding for the casino industry in Atlantic City.
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