Three of New Jersey’s own legislators and Democrats at that – Eric Houghtaling, Joann Downey and John Burzichelli are co-sponsoring a new draft of the proposed sports betting bill –which fascinatingly – includes a proposal for an NJ casino integrity fee.
This would not be intriguing if the matter had not already cost 9 million dollars in legal bills and received endless representations from sports representatives lobbying for this very thing over a period of six years previously.
That said, this new proposal is a slightly softened version of what has come before it and avoids giving sporting leagues the 1% integrity fee on all sums transacted. The authors of this new draft have, in fact, been extremely creative, in that the sports leagues will not have easy access to these funds. Instead, the state will manage the fund and each sporting body will need to apply for these funds via claim forms. The final decision for the distribution of such funds will lie with the New Jersey Attorney General. That is – if this draft bill is successful.
There is no shortage of a source of fees to keep the proposed integrity fund looking rosy. Currently, these are proposed:
- A deposit, on the application, of $100 000 for any sports wagering permit
- New applications for sports wagering permits will be issued at no less than a cool
$500 000 per application
- Renewal Fees for permits annually, in the amount of $250,000
- A yearly fee of R500,000 to the State General Fund – half of that to be used for funding for compulsive gambling therapy programs
- NJ online casinos and sports betting will be taxed at a rate of 12.5%
- Gross revenue from casinos and tracks will be taxed at 8%
Meanwhile, the other considerations for the legislation are not unusual and don’t contain any surprises:
- NJ Sports betting permits can be applied for by any AC casino or race track, and wagers can be made either via physical sportsbooks or can be made using mobile devices
- The intra-state regulatory body for sports betting would be NJ’s Division of Gaming Enforcement
- Approving the operation of a sportsbook, or regulating the joint co-operation of a casino and a racetrack, will fall under the NJ Racing Commission
- Wagers will not be permitted on college or school sporting activities
This re-draft certainly has some surprises, and we can be assured of further modifications as the leagues and the state try to find some mutually agreeable ground to finally put this one to rest, but progress is certainly being made.