Fresh sports betting bill launched in New Jersey

A trio of New Jersey legislators, Assemblyman Eric Houghtaling, Assemblywoman Joann Downey and Assembly Appropriations Committee chair John Burzichelli have introduced a bill regulating intrastate sports betting in preparation for a positive US Supreme Court decision widening the scope of sports betting in the United States.

Assemblywoman Downey explained the need for the legislation Monday, saying: “If the Supreme Court rules in favor of allowing sports betting, we will be prepared here in New Jersey where our casinos and racetracks play an integral role in our economy. Here in Monmouth County, the Monmouth Racetrack and Freehold Raceway would see a resurgence of attendance as a direct result of this bill, benefitting our local economy and producing more jobs.”

The bill makes provision for:

* Oversight of sports betting by the New Jersey Division of Gaming Enforcement;

^ Permits wagering at any Atlantic City casino or racetrack in the state, or via mobile wagering;

* Involves the New Jersey Racing Commission in approving the operation of a sportsbook at a track or “any agreement between a casino and a racetrack to jointly operate a sports pool;”

* Bans wagering on college events that take place in New Jersey, or on college events involving a New Jersey-based school;

* Gross revenue from sports wagering at casinos and tracks will be subject to an 8 percent tax;

* Online sports betting revenue to be taxed at a rate of 12.5 percent;

* Makes provision for a “sports betting integrity fee” for state integrity bodies and sports leagues (despite the latter’s opposition to New Jersey on the issue of the wider liberalisation of sports betting). This fee will be levied on an annual basis at a rate of the lesser of $7.5 million or 2.5 percent of that portion of gross gaming revenue attributable to wagers on sports events;

* Licensees must have a physical presence in the state if they wish to offer online or mobile sportsbook action;

* Sportsbook component offered by a state licensee must identify the licensee;

* Other fees licensees must meet include annual fees for the issue or renewal of sports wagering permits. The issuance fee shall be “based upon the cost of investigation and consideration of the license application and shall be not less than $500,000.” The renewal fee shall be based upon the cost of maintaining enforcement, control and regulation of sports pool wagering operations and shall be not less than $250,000. …A non-refundable deposit of at least $100,000 shall be required to be posted with each application for a sports pool permit and shall be applied to the initial permit fee if the application is approved.

* In addition to the permit issuance and renewal fees, a sports wagering permitholder shall pay annually to the division $500,000 to be deposited into the State General Fund for appropriation by the Legislature to the Department of Human Services, $250,000 of which shall be allocated to the Council on Compulsive Gambling of New Jersey and $250,000 of which shall be used for compulsive gambling treatment programs in the State.

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