Bill Text: NJ A4441 | 2018-2019 | Regular Session | Introduced
Bill Title: Changes use of certain revenue derived from sports wagering at casinos.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-09-17 - Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee [A4441 Detail]
Download: New_Jersey-2018-A4441-Introduced.html
Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
SYNOPSIS
Changes use of certain revenue derived from sports wagering at casinos.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the use of certain revenue derived from sports wagering at casinos and amending P.L.2018, c.33.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.2018, c.33 (C.5:12A-16) is amended to read as follows:
7. The sums received by the casino from sports wagering or from a joint sports wagering operation, less only the total of all sums actually paid out as winnings to patrons, shall not be taxed as gross revenue as specified under section 24 of P.L.1977, c.110 (C.5:12-24) but shall be subject to an 8.5 percent tax, except that sums received from Internet wagering on sports events, less only the total of all sums actually paid out as winnings to patrons, shall be subject to a 13 percent tax, which shall be paid to the Casino Revenue Fund and [the investment alternative tax established by section 3 of P.L.1984, c.218 (C.5:12-144.1) which investment alternative tax funds shall be used exclusively for tourism and marketing for the City of Atlantic City] to an additional tax of 1.25 percent to be paid to the Division of Local Government Services in the Department of Community Affairs for distribution, upon application by a municipality, to municipalities located in Atlantic County to be used by those municipalities for the purpose of property tax relief, provided, however, that the cash equivalent value of any merchandise or thing of value included in a jackpot or payout shall not be included in the total of all sums paid out as winnings to patrons for purposes of determining revenue under this paragraph.
The sums actually received by the horse racing permit holder from any sports wagering operation, either jointly 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, shall be subject to an 8.5 percent tax, except that sums received from Internet wagering on sports events, less only the total of all sums actually paid out as winnings to patrons, shall 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, less only the total of all sums actually paid out as winnings to patrons, to be paid to the Division of Local Government Services in the Department of Community Affairs for distribution, upon application by a municipality or county, to the municipality and to the county in which the sports wagering lounge is located or to an economic development authority of that municipality and county with those amounts used for economic development purposes, provided, however, that the cash equivalent value of any merchandise or thing of value included in a jackpot or payout shall not be included in the total of all sums paid out as winnings to patrons for purposes of determining revenue under this paragraph.
A percentage of the fee paid for a license to operate a sports pool shall be deposited into the State General Fund for appropriation by the Legislature to the Department of Health to provide funds for evidence-based prevention, education, and treatment programs for compulsive gambling that meet the criteria developed pursuant to section 2 of P.L.1993, c.229 (C.26:2-169), such as those provided by the Council on Compulsive Gambling of New Jersey, and including the development and implementation of programs that identify and assist problem gamblers. The percentage shall be determined by the division.
(cf: P.L.2018, c.33, s.7)
2. This act shall take effect immediately.
STATEMENT
This bill eliminates the investment alternative tax imposed on sums received by a casino from sports wagering, less sums paid as winnings, that is used for tourism and marketing of Atlantic City and replaces it with a tax of 1.25 percent to be distributed to municipalities in Atlantic County and used for property tax relief.
