Sponsored by:
Assemblyman RALPH R. CAPUTO
District 28 (Essex)
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
Senator VIN GOPAL
District 11 (Monmouth)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Allows deduction of promotional gaming credit from gross revenue on sports wagering.
CURRENT VERSION OF TEXT
As amended by the Senate on June 3, 2021.
An Act concerning promotional gaming credits for sports wagering and supplementing P.L.2018, c.33 (C.5:12A-10 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A casino or racetrack that holds a sports wagering license shall receive an annual deduction from the gross revenue taxed pursuant to section 7 of P.L.2018, c.33 (C.5:12A-16) in an amount equal to the promotional gaming credits, whether or not such amounts include a play-through requirement or other restriction, actually wagered by patrons, that are reported by that licensee in its annual tax return.
b. (1) A casino or racetrack that holds a sports wagering license shall be allowed the deduction, pursuant to subsection a. of this section, from gross revenues from Internet sports wagering for a tax year for the total value of promotional gaming credits actually wagered by patrons for that tax year in excess of $12,000,000. For the first tax year in which this act takes effect, the division shall reduce the $12,000,000 deduction threshold for that tax year in proportion to the part of the tax year that has elapsed prior to the effective date of this act.
(2) A casino or racetrack that holds a sports wagering license shall be allowed the deduction, pursuant to subsection a. of this section, from gross revenues from non-Internet sports wagering for a tax year for the total value of promotional gaming credits actually wagered by patrons at all licensed casinos and racetracks for that tax year in excess of $8,000,000. For the first tax year in which this act takes effect, the division shall reduce the $8,000,000 deduction threshold for that tax year in proportion to the part of the tax year that has elapsed prior to the effective date of this act.
c. (1) The division shall establish, by regulation, procedures to ensure that the promotional gaming credit deduction established pursuant to this section does not result in a negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate under section 7 of P.L.2018, c.33 (C.5:12A-16). If necessary, the division may reduce the value of the available deduction to eliminate any negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate, attributable solely to the deduction and not to other economic or other factors that cause a negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate.
(2) For the purposes of this subsection, "negative fiscal impact to the Casino Revenue Fund or the General Fund" shall mean that the amount generated from taxation of promotional gaming credits falls below the level generated in calendar year 2017.
1d. No deduction shall be allowed pursuant to this section for any promotional gaming credits included in the calculation of any other deduction for promotional gaming credits, including, but not limited to, the deduction allowed pursuant to section 2 of P.L.2008, c.12 (C.5:12-144.2).1
2. This act shall take effect immediately.