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.
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
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!
