Boosting tax coffers
New Jersey lawmakers completed a raft of changes on Monday that alter the landscape of online gambling in the state. They finalized the record $58.8bn budget just 18 minutes before the midnight deadline.
One of the big moves for operators is the upping of taxes, with the Senate and House both passing the measure following votes.
they’ll soon be paying 19.75% across the board
Sportsbooks and iGaming operators currently pay 13% and 15% respectively, while daily fantasy sports platforms contribute 10.5%. Under the new changes, they’ll soon be paying 19.75% across the board, which is lower than the initial 25% proposal from Governor Phil Murphy.
The change could generate hundreds of millions in extra tax revenue per year. Increasing gambling taxes is a trend that’s becoming more commonplace since Illinois became the first to do so last year. Louisiana and Maryland lawmakers are making similar moves, while Illinois is introducing a charge of $0.25 or $0.50 on every sports bet going forward.
Jumping on the bandwagon
Sweepstakes gaming has also been a hot topic across the US in recent months, with many regulators and lawmakers pushing forward with banning these platforms.
only a few minutes to pass legislation that explicitly bans sweepstakes gaming
New Jersey lawmakers took only a few minutes to pass legislation that explicitly bans sweepstakes gaming, with no discussion or debate necessary. The bill also criminalizes the promotion of these platforms, which would impact influencers and affiliate companies.
The Senate approved the proposal 34-5 and the Assembly by 69-10-1, making it the sixth state to pass this type of legislation. Governor Murphy just needs to sign the bill and the law will come into effect immediately.
Tightening the rules
Finally, betting partnerships are no longer permitted in New Jersey under the sweepstakes bill. This means that you can no longer place a bet on someone else’s behalf. If someone is found guilty of doing so, they face the same criminal consequences as if they tried rigging a slot machine or marking cards when playing blackjack.
same pertains to anyone who engages in proxy betting
The same pertains to anyone who engages in proxy betting, in which they risk property worth at least $1,000 and agree to pay at least 10% of any winnings to another party.
