With many New Jersey casinos and racetracks utilizing promotional gaming credits to attract new sports betting participants to their establishment, a bill sponsored by Assembly Democrats Ralph Caputo and Carol Murphy would allow these businesses to deduct those credits from their in-person sports wagering revenue on tax returns. The legislation unanimously passed the full Assembly Monday.
The bill (A-4002) clarifies that sports wagering credits actually used by a patron at a casino or racetrack would be deducted from the business’ annual sports wagering revenue, excluding revenue from online sports betting. Sports wagering revenue is taxed separately from general gross revenue
Upon the bill’s passage, Assemblyman Caputo (D-Essex) and Assemblywoman Murphy (D-Burlington) issued the following joint statement:
“Many of our casinos and racetracks suffered significant revenue losses during the pandemic due to necessary safety precautions. We must relieve any undue burden on this industry and help them keep residents employed by allowing casinos and racetracks to deduct free wagering credits given out to entice new patrons, who then use those credits to place a bet in their establishment. It is only fair these businesses be taxed on their actual in-person sports wagering revenue and not a larger, inaccurate number that would increase taxes owed to the state.”