(TRENTON) – Legislation sponsored by Eric Houghtaling, John Burzichelli, Joann Downey, Ralph Caputo and Raj Mukherji authorizing casinos in Atlantic City and racetracks to conduct wagering on professional and collegiate sport or athletic events cleared the Assembly Tourism, Gaming and the Arts Committee on Monday.
“This is about fairness, freedom, job creation and economic development,” said Houghtaling (D-Monmouth). Places like Monmouth Park and Freehold Racetrack have been left in the dark for far too long. Finally, this will no longer be the case.”
Under the bill (A-4111) adults 21 years of age or older will be allowed to place wagers in-person at a sports wagering lounge located at a casino or racetrack or via the internet.
“What a marvelous day for New Jersey,” said Burzichelli (D-Cumberland/Gloucester/Salem). “This will be a big boost for our economy. This will bring more people from in-state, out-of-state, and abroad to Atlantic City and to our state’s racetracks. This will bring jobs to our state and help put an end to illegal wagering. I can’t hide my excitement for what’s in store.”
According to the bill, the Division of Gaming Enforcement will have responsibility for licensing and will promulgate sports gaming regulations and the New Jersey Racing Commission would be involved in approving the operation of a sports pool at a racetrack and any agreement between a casino and a racetrack to jointly operate a sports pool.
“There will be ample benefits to legal sports wagering in New Jersey,” said Downey (D-Monmouth). “We will bring many jobs to Monmouth County, we will modernize our gaming industry, we will increase tourism, and we will be able to increase revenue for our state budget, and subsequently pay for vital programs which help our families.”
The bill comes following the United States Supreme Court Decision of Murphy v. National Collegiate Athletic Association (NCAA), in which New Jersey took the NCAA to court to challenge the 1992 Professional and Amateur Sports Protection Act which had banned state-authorized sports gambling with the exception of Nevada. The Supreme Court voted on May 14 by a 6-3 decision to strike down the ban, thereby legalizing sports betting and paving the way for this bill.
“I can’t stress enough how big of a boost this will bring to our state’s economy,” said Caputo (D-Essex). “Sports gambling has been going on for so long, and now the state can finally regulate this activity and reap some of the revenue so we can fund programs which will benefit all of our residents, including those who need it most. This will bring jobs back to New Jersey and contribute to the revitalization of Atlantic City. This is a big win.”
Under the bill, sports wagering gross revenue accumulated by a casino or racetrack will be subject to an 8.5 percent tax, while the tax rate applicable to online sports gross revenue will be 13 percent. These funds will be paid to the Casino Revenue Fund and the investment alternative tax, which funds will be used exclusively for the Meet Atlantic City market program.
The sums actually received by the horse racing permit holder from any sports wagering operation, either established with a casino or established independently or with non-casino partners, less only the total of all sums actually paid out as winnings to patrons, will be subject to an 8.5 percent, while internet wagering on sports events will be subject to a 13 percent tax, to be collected by the division and paid to the State General Fund and to an additional tax of 1.25 percent on amounts actually received from a sports wagering operation with 0.75 percent paid to the municipality and 0.5 percent paid to the county in which the sports wagering lounge is located or to an economic development authority for that municipality and county.
“With Americans betting $150 billion on sports every year but 97% of it illegally, this bill will allow us to generate significant revenue, create jobs, and help those with gambling addiction come out of the shadows and get help,” said Mukherji (D-Hudson). “Economically and socially, this is a win for our state and will further fuel the momentum to rebuild Atlantic City and save horse racing in New Jersey.”