Although the State of New Jersey is yet to get a ruling on its sports betting legal challenge from the Supreme Court, lawmakers have already started preparing for a win by introducing a new bill that would regulate the activity.
A3911, which was introduced by Assembly Deputy Majority Leader Eric Houghtaling (D), Deputy Speaker John Burzichelli (D), and Assembly woman Joann Downey (D-District 11) would allow sports betting to be conducted at New Jersey horse racetracks and Atlantic City casinos. The most recent bill would also require operators to pay an integrity fee before the wagers are accepted. An amount of almost $9 million in legal fees has been put up by the Garden State to push the sports betting case to the Supreme Court, and it is probably endeavoring to recoup those costs as soon as possible.
The bill included the following fees and taxes:
- Sports betting revenues taxes at 12.5%
- $100,000 deposit for each sports betting license application, which will be credited toward an initial issuance fee if a license is granted
- Initial issuance fee of $500,000
- Annual renewal fees of $250,000
- Integrity fee equal to the lesser of $7.5 million or 2.5% of sports betting GGR
- $500,000 annual fee to the State Government Fund. The state’s DHS will appropriate that money to the Council of Compulsive Gambling as well as other compulsive treatment programs
The Supreme Court’s decision on sports betting is eagerly awaited and should the court rule in favor of New Jersey, it is bound to open the door to enhanced sports betting throughout the United States.