This bill amends existing laws regarding the taxation of Internet gaming and fantasy sports activities in New Jersey. It establishes an annual tax of 19.75 percent on Internet gaming gross revenues, which will be directed to the Casino Revenue Fund. The bill also clarifies that the 8 percent tax on casino gross revenues does not apply to Internet gaming. Additionally, it modifies the investment alternative tax on Internet gaming gross revenues to 5 percent, with a 2.5 percent alternative investment. For sports wagering, the bill specifies that sums received from Internet wagering on sports events will be taxed at 19.75 percent, along with an additional 1.25 percent tax for marketing and promotion of Atlantic City.

Furthermore, the bill outlines definitions and regulations for fantasy sports activities, including the requirement for operators to obtain a permit from the Division of Consumer Affairs. It establishes a quarterly operations fee of 19.75 percent of fantasy sports gross revenue, and it sets forth various compliance measures for operators, including age restrictions and self-exclusion options for participants. The bill also imposes penalties for unauthorized operation of fantasy sports activities and tampering with related equipment. The provisions of this act will take effect on July 1, 2025.

Statutes affected:
Introduced: 5:12-95.19, 5:12A-16, 5:20-2
Advance Law: 5:12-95.19, 5:12A-16, 5:20-2
Pamphlet Law: 5:12-95.19, 5:12A-16, 5:20-2