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A2392
ASSEMBLY, No. 2392
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
���� Establishes annual fee for sports wagering licensees;
directs funds from such fees to Council on Compulsive Gambling and gambling
addiction treatment programs.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning the annual fees to be paid by sports
wagering licensees and funding for the Council on Compulsive Gambling, and
amending P.L.2018, c.33.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 7 of P.L.2018,
c.33 (C.5:12A-16) is amended to read as follows:
���� 7.��� The sums received by the
casino from sports wagering or from a joint sports wagering operation, less
only the total of all sums actually paid out as winnings to patrons, shall not
be taxed as gross revenue as specified under section 24 of P.L.1977, c.110
(C.5:12-24) but shall be subject to an 8.5 percent tax, except that sums
received from Internet wagering on sports events, less only the total of all
sums actually paid out as winnings to patrons, shall be subject to a 13 percent
tax, which shall be paid to the Casino Revenue Fund, and to an additional tax
of 1.25 percent which shall be remitted by the State Treasurer to the Casino
Reinvestment Development Authority for marketing and promotion of the City of
Atlantic City, provided, however, that the cash equivalent value of any
merchandise or thing of value included in a jackpot or payout shall not be
included in the total of all sums paid out as winnings to patrons for purposes
of determining revenue under this paragraph.
���� The net revenues actually
received by the horse racing permit holder from any sports wagering operation
at the Meadowlands Racetrack, including Internet wagering on sports events,
either jointly established with a casino or established independently or with
non-casino partners, less the total of all sums actually paid out for any
operating expenses and as winnings to patrons, shall be paid by the Meadowlands
Racetrack to the Standardbred Breeders and Owners' Association of New Jersey
and the New Jersey Thoroughbred Horsemen's Association pursuant to the terms of
a written agreement between the Meadowlands Racetrack and each association.� A
written agreement shall be in effect for as long as a sports wagering operation
is conducted at the Meadowlands Racetrack.
���� The net revenues actually
received by the horse racing permit holder from any sports wagering operation
at the Monmouth Park Racetrack, including Internet wagering on sports events,
either jointly established with a casino or established independently or with
non-casino partners, less the total of all sums actually paid out for any
operating expenses and as winnings to patrons, shall be paid by Monmouth Park
Racetrack to the New Jersey Thoroughbred Horsemen's Association pursuant to the
terms of a written agreement between Monmouth Park Racetrack and that
association.� A written agreement shall be in effect for as long as a sports
wagering operation is conducted at Monmouth Park Racetrack.
���� The net revenues actually
received by the horse racing permit holder from any sports wagering operation
at the Freehold Raceway, including Internet wagering on sports events, either
jointly established with a casino or established independently or with non-casino
partners, less the total of all sums actually paid out for any operating
expenses and as winnings to patrons, shall be paid by Freehold Raceway to the
Standardbred Breeders and Owners' Association of New Jersey pursuant to the
terms of a written agreement between Freehold Raceway and that association.� A
written agreement shall be in effect for as long as a sports wagering operation
is conducted at Freehold Raceway.
���� The sums actually received by
the horse racing permit holder from any sports wagering operation, either
jointly established with a casino or established independently or with
non-casino partners, less only the total of all sums actually paid out as winnings
to patrons, shall be subject to an 8.5 percent tax, except that sums received
from Internet wagering on sports events, less only the total of all sums
actually paid out as winnings to patrons, shall be subject to a 13 percent tax,
to be collected by the division and paid to the State General Fund and to an
additional tax of 1.25 percent on amounts actually received from a sports
wagering operation, less only the total of all sums actually paid out as
winnings to patrons, to be paid, except as provided below with respect to
amounts generated by the Meadowlands racetrack, to the Department of the
Treasury for distribution, upon application by a municipality or county, to the
municipality in which the majority of the racetrack is located and to the county
in which the racetrack is located or to an economic development authority of
that municipality and county with those amounts used for economic development
purposes, which shall include, but not be limited to, improvements to:
transportation and infrastructure, tourism, public safety, and properties
located on or near the racetrack, provided, however, that the cash equivalent
value of any merchandise or thing of value included in a jackpot or payout
shall not be included in the total of all sums paid out as winnings to patrons
for purposes of determining revenue under this paragraph.� The Department of
the Treasury shall establish an account for each eligible municipality and
county and shall ensure that the amounts generated from the racetrack shall
only be distributed to the municipality in which the majority of the racetrack
is located and county in which the racetrack is located with 0.75 percent paid
to the municipality and 0.5 percent paid to the county, except that amounts
generated from the Meadowlands racetrack shall be paid into the intermunicipal
account, established pursuant to section 53 of P.L.2015, c.19 (C.5:10A-53), and
used to pay Meadowlands adjustment payments to municipalities in the
Meadowlands district.
���� A percentage of the fee paid
for a license to operate a sports pool shall be deposited into the State
General Fund for appropriation by the Legislature to the Department of Health
to provide funds for evidence-based prevention, education, and treatment programs
for compulsive gambling that meet the criteria developed pursuant to section 2
of P.L.1993, c.229 (C.26:2-169), such as those provided by the Council on
Compulsive Gambling of New Jersey, and including the development and
implementation of programs that identify and assist problem gamblers.� The
percentage shall be determined by the division.
����
In addition to the license
issuance and renewal fees, a sports wagering licensee shall pay annually to the
division $250,000 to be deposited into the State General Fund for appropriation
by the Legislature to the Department of Human Services, $140,000 of which shall
be allocated to the Council on Compulsive Gambling of New Jersey and $110,000
of which shall be used for compulsive gambling treatment programs in this
State.
(cf: P.L.2019, c.36, s.3)
���� 2.��� This act shall take
effect January 1 next following the date of enactment.
STATEMENT
���� Under current law, the
Division of Gaming Enforcement is authorized to establish by regulations the
license issuance and renewal fees for sports wagering licenses.� Such fees are
currently set at $100,000 annually, with 50 percent of these fees being dedicated
to gambling addiction treatment programs.
���� This bill establishes an
annual fee to be paid by sports wagering licensees, in addition to license
issuance and annual renewal fees.� The bill establishes this fee as $250,000,
with $140,000 being allocated to the Council on Compulsive Gambling of New Jersey
and the remaining $110,000 being used for other compulsive gambling treatment
programs in this State.