New Jersey plan for a future with sports betting as tax looms

New Jersey sports betting

New Jersey sports betting

With the anticipation of a favorable judgment on sports wagering from the United States Supreme Court, New Jersey legislators are already proceeding with a proposal to control and tax stakes and winnings.

Bill A3911, presented to the General Assembly was set up to provide regulatory structure to legalize and operate sports wagering in all racecourses and casinos in New Jersey. The bill controls betting on professional as well academic sports either physically or online.

Betting on sporting activities that take place within the state will be outlawed. This would prohibit stakes on home games for a number of sporting teams which includes; New York Red Bulls, New Jersey Devils, New York Giants as well as New York Jets.

Betting would not even be permitted on any New Jersey college sports team under the proposed legislation. This ban excludes the NCAA male basketball tourney which takes place in other the states, not minding that a few of the individual matches are in New Jersey.

Under the proposed plan, the Department of Gaming Administration will take the duty of giving licenses and implementing legislation, while the NJ Racing Commission will be responsible for authorizing the running of a sporting pool at any racecourse.

Under this bill, earnings from sports betting would be charged 8 per cent tax, while web-based sports wagering would be charged 12.5 per cent in taxes.

Racecourses and casinos would be charged a yearly sports wagering “credibility fee” which will be equivalent to 2.5 per cent of their betting earnings or $7.5 million. Inquiries into the credibility of sporting games against which bets were staked would be financed by this fee.

The major sponsors of the bill include Assemblyman Eric Houghtaling, representing Monmouth; Assemblyman John Burzichelli, representing the district of Cumberland, Gloucester, Salem, and Assembly woman Joann Downey, also from Monmouth.

According to Assemblyman Houghtaling “sports betting might be a fantastic opportunity” which the state must maximize. Going further, he stated that the bill is “still being fine-tuned” and that lawmakers would keep on working with racecourses and casinos going forward.

Houghtaling is on record saying: “We will consider every suggestion and we are optimistic about taking the NJ betting industry to the next level.”

Downey outlined the “crucial role” of racecourses and casinos in the economy of the state.

According to Downey in that same news release, “in Monmouth County, our Racecourses and Freehold Racetracks would witness an increase in attendance because of the bill, helping our local economy as well as creating more employment opportunities.”

The bill is yet to be published on the website of the state lawmakers, pending the judgment of the Supreme Court.

The Supreme Court is anticipated to give a verdict on the NJ objection to the 1992 Professional & Amateur Sports Safety law, a federal regulation that outlaws sports gambling in several states. Under existing federal legislation, the few states that sports wagering is licensed include; Delaware, Nevada, Oregon and Montana. Nevada happens to be the sole state that permits single-game betting.

If the ban of the federal sports on wagering is nullified, NJ is expected to make an excess of $173 million from tax earnings and witness the generation of over 3, 633 employments, as outlined by an Oxford Economics report.

In the Atlantic City, most casino hotel resorts are expecting the court to decide in favor of New Jersey. It is reported that the Borgata Hotels Casino and Spa is planning to construct a $7 million gaming and betting room at the resort should the legislation be nullified. Bruce Deifik, the CEO of the about-to-be unveiled Ocean Casino Resort is reported to be planning to make investments in a sports wagering lounge should the court rule in favor of New Jersey.

In a news statement in January where he announced his $200 million acquisition of the former Revel Hotel Casino, Deifek stated that “The Atlantic City is returning with a mission to settle scores, and with the foundation for the endorsement of sports wagering, we anticipate a fantastic opportunity to introduce an innovative sportsbook to the city which serves a huge and different sports market.”

Show More
0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments
Would love your thoughts, please comment.x