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.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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!
