A package of bills recently proposed in Trenton would tweak the state’s booming online gaming market with new safeguards for kids and chronic gamblers, including more taxes on their winnings.
One bill before the state Senate would prohibit points-betting apps that allow players under the age of 21 to place non-monetary wagers. State Sen. John McKeon (D-Essex), the bill’s sponsor, said these kinds of apps mimic gambling apps and target young children.
“Back in the day, they had candy cigarettes and that got the children ready to smoke,” he said. “What they do now is that they have online gaming, but it’s just for points. And what that does is it conditions the brains of children to get ready to gamble, and to me, that’s irresponsible and it shouldn’t happen.”
Another bill in the package would allow those who voluntarily place themselves on a list to be banned from gambling in the state to sue casinos that let them play nonetheless. And a third bill in the package would raise state tax rates on online wagering, in some cases doubling them. The bill would raise tax rates to 30%, from 15% for online wagering and 13% for online sports betting. McKeon says the proposed tax hike could also generate hundreds of millions of dollars as state lawmakers face lagging tax revenues.
The Council on Compulsive Gambling in New Jersey has said that calls to its helpline have increased by 277% in the last five years, with the largest percentage coming from those between the ages of 25-34. The number of calls from young people ages 18-24 has also doubled in that time.
But the legislation has received push-back from the Casino Association of New Jersey, which in a statement said it “strongly opposes any proposed tax increase for online gaming.”\
