ATLANTIC CITY — If online gambling is increasingly where New Jersey's casino money is being made, Atlantic City Councilman Jesse Kurtz says the state should use some of that growth to drive gamblers back into the resort.
Kurtz, who represents Atlantic City's 6th Ward, is proposing changes to the way online casino rewards and promotions work, including requiring some portion of online gambling comps to be redeemed in person in Atlantic City.
He also wants New Jersey to consider higher fees on online gambling operators that do not have a physical presence in the city, with that money dedicated to Atlantic City infrastructure.
Kurtz outlined the ideas Monday during an appearance on WOND's Talking with Anne with Anne Baker (M-F, 10a-12p).
The proposal comes as New Jersey's online casino industry continues to grow considerably faster than gambling on Atlantic City's casino floors.
Through the first seven months of 2026, internet gaming win reached $1.87 billion, up 14.5% from the same period last year, according to the New Jersey Division of Gaming Enforcement.
By comparison, in-person casino win at Atlantic City's nine casinos totaled $1.72 billion through July, an increase of 3.1%.
July alone produced $276.9 million in internet gaming win — a monthly record — compared with $304.2 million won on Atlantic City's casino floors.
For Kurtz, those numbers illustrate why the growth of online gambling needs to be leveraged to support Atlantic City's physical casino economy.
"That stronger part has to be leveraged in a way to complement the in-person experience," Kurtz said during the radio interview.
Use Online Comps to Bring Gamblers to Atlantic City
Kurtz said the state should examine its regulations governing online casino rewards and promotions.
One possibility, he said, would be requiring operators to make a certain portion of online rewards redeemable only through an in-person visit to Atlantic City.
"I think number one is to tie the regulations that deal with online gambling to force it to have more of an in-person experience, and that means with how rewards or comps are granted," Kurtz told Baker.
Kurtz acknowledged that online gambling has become too established to simply reverse course.
"It's going to be hard to put the proverbial genie back in the bottle when it comes to how prevalent online gambling is now," he said.
Instead, he wants the state to use its regulatory power to encourage online players to visit Atlantic City's physical casinos.
Kurtz said rewards could be made attractive enough to encourage players to redeem them in Atlantic City or regulations could require that "a certain percentage of the comps that they give out, the free play, the rewards for players, meets the definition of a land-based in-person comp, something that has to be redeemed in Atlantic City."
Such rewards could potentially include hotel stays, meals, entertainment or other benefits tied to an Atlantic City visit.
Kurtz said the strategy could be particularly valuable during the colder months, when Atlantic City typically has fewer visitors.
Online Gaming Has Surpassed Casino Floors This Year
The latest state figures illustrate how dramatically New Jersey's gambling business has changed.
In 2025, internet gaming win reached $2.91 billion for the year, edging past the $2.89 billion won on Atlantic City's casino floors.
The trend has continued in 2026.
Through July, online gaming was about $150 million ahead of in-person casino win despite July being part of Atlantic City's peak summer tourism season.
The gap is being driven primarily by growth rates.
Internet gaming win increased 14.5% through July compared with the same period in 2025, while Atlantic City's in-person casino win increased 3.1%.
The distinction is important for Atlantic City because revenue generated online does not necessarily produce the same economic activity as someone physically visiting a casino hotel, eating at restaurants, attending shows, shopping or spending money elsewhere in the resort.
New York Competition Looms
Kurtz also connected his proposal to the growing threat of casino competition from New York.
New York is moving toward opening three downstate casinos, creating additional competition for customers who historically might have traveled to Atlantic City.
"Any competition, no matter how well we weather it, is going to cut into our bottom line," Kurtz said.
He said Atlantic City and New Jersey need to position themselves to make the effect "a little ripple as opposed to being more of a big wave slamming the industry here and our bottom line."
Kurtz argued that increasing competition should force state policymakers to reconsider how online gambling benefits Atlantic City's physical casino economy.
"Having this direct competition should force the state policymakers to address what has been slowly eroding the in-person economy, and that's the online piece," he said.
Higher Fees to Pay for Atlantic City Infrastructure
Kurtz also proposed another way to connect online gambling revenue more directly to Atlantic City.
Rather than placing additional taxes on companies operating the city's physical casino hotels, he said New Jersey should consider higher fees on online operators without a physical presence in Atlantic City.
"I think anybody that doesn't have a physical presence in Atlantic City could be a good target for those higher fees," Kurtz said.
But he said the money should not simply flow into the state budget.
"They should be user fees," Kurtz said. "They don't go and disappear into the budget for people to waste."
Instead, he wants the revenue dedicated to infrastructure supporting the millions of visitors Atlantic City receives each year.
"They should be dedicated to some infrastructure work that supports the physical plant here in Atlantic City — the Boardwalk repairs, the streets, the drainage, the pumps for flooding, etc.," Kurtz said.
New Jersey already increased taxes on internet casino gaming and online sports wagering last year. The internet gaming tax rate rose from 15% to 19.75%, while the online sports wagering rate increased from 13% to 19.75%.
Kurtz's proposal would go further by attempting to establish a more direct connection between the expanding digital gambling business and investment in Atlantic City.
No Matching Proposal Found in Trenton
A review by South Jersey NewsBeat of current New Jersey gaming regulations and legislation did not identify an existing requirement that a specified portion of online casino rewards or promotional credits be redeemed at an Atlantic City casino.
New Jersey does, however, already regulate internet gaming promotions, and state law recognizes promotional gaming credits used through both casino and internet gaming systems.
That provides an existing regulatory framework through which promotions and rewards are overseen by the state.
Whether the state could impose the specific requirements Kurtz envisions — and what legislative or regulatory changes would be necessary — remains an open question.
Kurtz argued during the interview that there is a strong constitutional rationale for tying internet gaming more closely to Atlantic City, citing New Jersey voters' decisions to authorize casino gambling specifically as a tool for the resort's redevelopment.
That represents Kurtz's interpretation of the state's constitutional and regulatory framework rather than a legal determination.
But with internet casino revenue now exceeding in-person casino revenue so far this year and major new competition approaching from New York, Kurtz says the state should rethink the relationship between New Jersey's fastest-growing form of casino gambling and the city that made it possible.
His goal is straightforward: If more people are going to gamble from their phones and computers, give them a reason to eventually get in the car and come to Atlantic City.
About the Author
Scott Stephens
Scott has been an on-air personality, producer and newscaster for 30+ years. He has been a mainstay in the South Jersey Community and on the air across many different area stations. Scott can currently be heard on Kool 98.3 and News Talk 1400 & 92.3 WOND.
