New Jersey governor greenlights sports betting tax increase
Operators will pay an addition 1.25% to fund state-wide marketing and promotion drive
New Jersey governor Phil Murphy has signed off on proposals to increase the state’s current taxes on sports betting by 1.25%, according to local reports.
The increase will apply to both online and land-based operators, taking online tax to 9.75% of gross gaming revenue and land-based sports betting taxes to 13% of GGR.
According to the Press of Atlantic City website, Governor Murphy greenlit the proposals to benefit the Casino Reinvestment Development Agency, with the funds being earmarked for “marketing and promotion” purposes.
The CDRA “facilitates economic and community development in Atlantic City by leveraging its available assets and revenues with private investment capital to support redevelopment projects throughout the City.”
Additional taxation revenues from Monmouth Park and the Meadowlands Racetrack will be passed directly to the towns in which the tracks are located.
The news comes amid a steep rise in sports betting in the state, with September bets placed at New Jersey sports books totalling $184m (£140m), generating state-wide revenues of $24m. Bets placed online accounted for $104m of this figure.
DraftKings was the big revenue winner during September, generating $8.5m in revenue during the month, while nearest competitor FanDuel could only manage $2.8m from its operations at the Meadowlands racetrack.
William Hill’s operations at Monmouth Park and Ocean resort could only manage a combined revenue total of $362,866.
State regulators received over $2.6m in taxation revenue from sports betting during the month.