NJ Legislature Unanimously Approved a Measure to Legalize Sports Betting in New Jersey
On June 7, 2018, the New Jersey Legislature unanimously approved a measure to legalize sports betting throughout the state. The vote came just weeks after the U.S. Supreme Court sided with New Jersey in the state’s seven-year battle to overturn the Professional and Amateur Sports Protection Act of 1992 (PASPA) and legalize sports wagering.
The bill, S2602/A4111, authorizes people age 21 and over to place wagers on sports games in New Jersey casinos and racetracks, as well as online. Wagering on any collegiate sport or athletic event that takes place in New Jersey or on a sport or athletic event in which any New Jersey college team participates would be prohibited, regardless of where the event takes place.
As more fully detailed in a prior post, the Division of Gaming Enforcement and the New Jersey Racing Commission will have responsibility for licensing and will promulgate regulations for the conduct and operation of the sports wagering activities.
Amendments Reflected in Final Sports Betting Law
The final law contains several key changes. Notably, the Legislature removed a provision that would have penalized anyone who accepted sports wagers before the regulatory framework is in place. Also, the final bill no longer includes a provision that bans a New Jersey business from opening a sports book if its owners hold a 10 percent stake or greater in a professional sports team. The prohibition would have directly affected the Golden Nugget in Atlantic City, whose owner, Tilman Fertitta, also owns the NBA’s Houston Rockets.
For casinos, the tax rate on sports wagering will be 8.5 percent, except that the tax rate will be 13 percent for Internet wagering, paid to the Casino Revenue Fund;
For racetracks, the tax rate on sports wagering will be 8.5 percent, except that the tax rate will be 13 percent for Internet wagering, paid to the State General Fund;
The 1.25 percent tax on amounts received by racetracks from a sports wagering operation will be calculated based on the amount received less the amount paid out as winnings and will be paid to the Division of Local Government Services to be distributed, upon application, to a municipality or county in which a racetrack is located to be used for economic development purposes.
When Can Sports Books Accept Bets?
Gov. Phil Murphy signed the bill on June 11, 2018. Governor Murphy stated that “Today, we’re finally making the dream of legalized sports betting a reality for New Jersey.” He further stated that “I’m thrilled to sign Assembly Bill 4111 because it means that our casinos in Atlantic City and our racetracks throughout our state can attract new business and new fans, boosting their own long-term financial prospects. This is the right move for New Jersey and it will strengthen our economy.”
Monmouth Park is scheduled to begin accepting sports bets on Thursday, June 14 at 10:30 a.m. The estimated State tax revenues that could be generated from sports betting are projected to range between $12 million and $17 million in the first full year of operation. For businesses looking to enter New Jersey’s legal sports betting industry, we encourage you to work with a knowledgeable New Jersey business attorney who can help you navigate the state’s regulatory structure, while maximizing your profits.
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
