New Jersey Reintroduces Bills to Launch Racetrack Slots and Restrict Advertising

New Jersey, a hub for gambling and entertainment, is once again considering significant changes to its gaming landscape. Senator Joseph Pennacchio's bill, known as SCR14, seeks to bring slot machines to New Jersey racetracks. The proposed legislation also outlines plans to utilize the generated revenue to support various state initiatives, including casinos, horse racing, and improvements to Atlantic City.

Senator Pennacchio has made repeated attempts to pass this bill since 2014, but it has faced consistent setbacks, including committee rejection in 2020 and 2022. Additionally, SB2156, introduced by Senator Joseph Cryan, has previously failed to gain traction in the senate. This bill, in its current form, aims to limit advertising related to casino games and sports pools, particularly targeting self-excluded gamblers and children. It also seeks to address "fraudulent" advertising practices while preserving other advertising methods.

Both bills are currently under review by the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

These legislative proposals come on the heels of a challenging period for New Jersey's gambling industry in the second half of 2023. While November 2023 saw a year-on-year increase of 9.4% in gambling revenue, monthly earnings dipped by $4.7 million compared to October, which had reached $487.1 million.

The decline in revenue was primarily attributed to a decrease in land-based casino earnings. Notably, MGM Resorts' Borgata remained the highest-grossing property in the state, despite a 6.1% drop in earnings compared to November 2022. Conversely, Bally's experienced substantial year-on-year growth, with casino earnings increasing by over 20%. Additionally, Golden Nugget reported the highest internet gaming win for November, totaling $50.1 million, a 32.9% increase from the previous year.

Online gaming, however, continued to show promise, with total gaming revenue in the first 11 months of 2023 reaching $5.3 billion, reflecting a 10.5% increase compared to the previous year-to-date period. The reintroduction of these bills signals New Jersey's ongoing efforts to adapt and enhance its gambling industry amid evolving challenges.