WASHINGTON, June 20, 2017 /PRNewswire/ -- The legal online gaming industry is generating tax revenue, adding jobs, and spurring technological innovation, with little of the negative impact once anticipated by opponents, according to a recently released report that examines the effects of interactive gaming in New Jersey.
In their paper: "Economic Impact of New Jersey Online Gaming: Lessons Learned," researchers Alan Meister, Ph.D., of Nathan Associates, and Gene Johnson, of Victor Strategies, analyzed financial and sociological data accumulated since New Jersey legalized online gambling in 2013.
The study — sponsored by iDEA (iDevelopment and Economic Association), a trade association that exclusively represents the interests of the U.S. online gaming industry, and peer reviewed by researchers at the University of Nevada, Las Vegas — finds that from its inception through 2016 New Jersey iGaming has directly and indirectly generated:
- $998.3 million in revenue.
- 3,374 jobs.
- $218.9 million in wages to employees.
- $124.4 million in tax revenue to state and local governments (including $83.5 million in iGaming taxes).
The research suggests that those benefits could be replicated in other regions.
"New Jersey's experience provides valuable lessons for other U.S. states considering iGaming legalization," said Jeff Ifrah, a leading gaming attorney and one of iDEA's founding members. "The state's operating environment and regulatory structure provides a portable model which can be implemented by other jurisdictions, bringing much-needed jobs and tax revenue."
The study finds that concerns raised during the initial debates have been unfounded. There has not been a single major incident of online cheating or player fraud reported and incidents of cybercrime have been extremely rare.
"New Jersey iGaming is also a success from a regulatory perspective, with some of the strictest iGaming regulation protocols in the world," Ifrah said. "These regulations guarantee that operators are accountable, and that players can trust that they will be protected."
Delaware, Nevada, New Jersey, and the U.S. Virgin Islands, offer legal online casino gambling. California, Illinois, Massachusetts, Mississippi, New York, Pennsylvania, and Washington are among those considering legislation that would legalize online gaming.
For more information on the regulated online gaming industry and the new study, visit iDEAGrowth.org.
iDEA (I-Development and Economic Association) is an association seeking to grow jobs and expand online interactive entertainment business in the United States through advocacy and education.
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