New Jersey's Legislative Budget Chief David Rosen revealed last week that internet gambling could generate $225 million in state taxes annually, with gross revenues reaching $1.5 billion in five years.
Rosen also confirmed that the New Jersey Division of Gaming Enforcement is responsible for implementing the internet betting regulations, and will do so between May and November of this year.
The state's Treasurer Andrew Sidamon-Eristoff also spoke about the tax implications for cyber betting in the garden state. At a 15% tax rate, this would yield $225 million in revenue to the state,” Sidamon-Eristoff said. He also reported that roughly $180 million in tax revenues will be created during the first year of internet based betting.
The numbers are based off a Wells Fargo study, which is also being met with a level of skepticism, as some think the report underestimates how quickly the Garden State could implement an effective internet betting system.
“Wells Fargo estimated an initial impact, which did not benefit from a specific knowledge of the final legislation or our ultimate plans governing how quickly we would be able to roll out a fully functional system. We also feel that Wells Fargo’s analysis underestimated the level of excitement, novelty and publicity that such a rare opportunity would create," Sidamon-Eristoff said.
The Wells Fargo analyst who conducted the report claims that revenues could indeed surpass the predictions, but that there are many uncertainties about regulations and just when certain betting sites would go online.