SOUTH JERSEY (KYW Newsradio) — A New Jersey state senator is leading a statewide effort to reduce underage online gambling, which lawmakers believe to be a growing problem.
Two pieces of legislation aim to tackle the issue. State Sen. James Beach, a Democrat from Voorhees, said kids are having their lives upended by compulsive gambling, sometimes starting in the early teen years.
“Education and prevention are much more important than a $500 fine or a $1,000 fine,” he argued.
The first bill would require minors caught gambling to participate in a prevention and treatment program. Beach said gaming apps are too easy for kids to access and difficult for the operators to screen — so another bill is about education, requiring schools to teach kids about the pitfalls of compulsive gambling.
Both pieces of legislation have received committee approval and would need to pass a full vote before being signed into law.
Gov. Phil Murphy also pitched an increase in online gaming tax rates in his budget proposal last week. However, two South Jersey state senators — one from each political party — are cautioning against it, saying it may not deliver the intended result.
Online gaming is a huge business in New Jersey, and the revenue from those bets helps keep some Atlantic City casinos afloat, according to Republican Michael Testa and Democrat John Burzichelli. Burzichelli said there could be a few unintended consequences of raising the tax rate.
“What we would theoretically gain in a tax increase, we would use in volume that allows this industry to do the level of business it’s doing. So sometimes when you charge more, in the end, you don’t always get more,” he said.
Sportsbooks would likely adjust the odds offered to offset the potential losses, he added.
The Casino Association of New Jersey said this would have a significant impact on brick-and-mortar casinos, threaten jobs, and likely eliminate some of the promotions and giveaways customers enjoy.
There’s a long way to go before the budget deadline at the end of June, so this proposed tax increase will be discussed further in Trenton.