As I had predicted from the outset, the revenue and taxation figures for online gambling in NJ are moving in a downward direction.
Instead of the 200M in additional tax revenue anticipated from gaming taxes in NJ, the state treasurer is now saying only 34M in new tax revenue is expected this year (June 30 year end).
Not all of the tax revenue anticipated was expected to come from online gambling, however it would be fair to say that 75% (150M) of the 200M in taxes originally anticipated was to have come from online gambling. This is based on Christie’s original projection of 1B in online gambling revenue (at 15% tax rate) by July 2014.
Extrapolating these numbers and applying the 75% to the 34M, this leaves us with 23.5M attributable to online gambling tax revenue which represents 15% of approximately 157M.
This number is extremely close to what I predicted as the maximum revenue online gambling would generate in NJ (no more than 150M) and in my humble opinion it will be a stretch to hit these numbers for the various reasons I promulgated in my previous posts.
Christie overplayed hand on NJ internet gambling | NJ.com.
Alex Igelman