The tax revenue totals are a result of the 15% tax levied by the state and a 2.5% reinvestment tax that is used to pay off debt in Atlantic City.
The New Jersey Monthly Internet Gross Revenue Report showed that legal online casinos collected USD 21.1M in gross revenue in May.
“Even naysayers cannot deny the impact of New Jersey online gambling, which has now contributed more than $100 million to state coffers,” said Robert DellaFave, senior analyst for PlayNJ.com.
“New Jersey’s online gambling industry may be the state’s only new revenue stream to both generate more than $100 million in tax dollars and to do it without placing a heavy burden on citizens.”
The monthly total is up from $20.8 million in April and nearly reaching the record $21.7 million in March. The impressive tally comes in spite of the Memorial Day holiday weekend, which typically suppresses online gambling revenue.
“Record or near-record breaking monthly revenue tallies are more of an inevitability than an anomaly at this stage in the New Jersey online gambling industry’s lifecycle,” DellaFave said.
Nowhere has the impact of regulate online gambling been felt more than in Atlantic City, which is using the reinvestment tax as part of a state rescue plan to pay down hundreds of millions of dollars of the city’s debt.
“Atlantic City is inundated with debt, but thanks to tax revenue contributions from online gambling, the beleaguered city stands a stronger chance of making a full recovery,” DellaFave said.
May also marked the third consecutive month that New Jersey online gaming industry has surpassed USD 20M in gross revenue.
Some other key points from the May report:
- New Jersey online casinos have now generated more than $100 million in gross revenue through the first five months of 2017, and more than $575.5 million (554,452,143+May) in total revenue since 2013.
- Borgata Hotel Casino & Spa remains the leader in lifetime revenue generated by online casinos and poker. But Golden Nugget Atlantic City was tops in May with $5.9 million.
- Online casino games accounting for 84 percent of total revenue; poker accounts for the remaining 16%.
Original article published on Yogonet.com