This bill proposes an increase in the tax rates for Internet casino gaming and Internet sports wagering in New Jersey, raising them from 15 percent and 13 percent, respectively, to a uniform rate of 30 percent. The new legal language specifies that the annual tax on Internet gaming gross revenues will be set at 30 percent, which will be directed to the Casino Revenue Fund. Additionally, the bill clarifies that the existing 8 percent tax on casino gross revenues will not apply to Internet gaming gross revenues, and it maintains the investment alternative tax at 5 percent and 2.5 percent for Internet gaming.

Furthermore, the bill outlines that the sums received from Internet wagering on sports events will also be subject to the new 30 percent tax, which will be collected and allocated to the Casino Revenue Fund. An additional tax of 1.25 percent will be remitted to the Casino Reinvestment Development Authority for marketing and promotion of Atlantic City. The bill also includes provisions for the distribution of revenues generated from sports wagering operations at various racetracks, ensuring that funds are used for economic development purposes in the respective municipalities and counties. The act is set to take effect on January 1 following its enactment.

Statutes affected:
Introduced: 5:12-95.19, 5:12A-16