New Jersey to Adopt Sportsbetting Integrity Fee

A sportsbetting bill has been introduced in New Jersey this week and should the federal ban be ruled against by the Supreme Court, a new regulatory framework could be added to the bill.

Eric Houghtaling, Joann Downey and John Burzichelli have introduced the most recent sportsbetting bill, A3911, which requires an integrity fee to be put up by operators and that bettors must pay before any wager is accepted. Almost $9 million in legal fees has been paid by New Jersey in order to push the sportsbetting case in the Supreme Court.

The following fees and taxes are included in the bill: Sportsbetting revenues taxes at 12.5%; $100,000 deposit for each license application, which will be credited toward an initial issuance fee if a license is granted; Initial issuance fee of $500,000; Annual renewal fees of $250,000; Integrity fee equal to the lesser of $7.5 million or 2.5% of sportsbetting GGR and $500,000 annual fee to the State Government Fund.

The New Jersey Division of Gaming Enforcement will be responsible for regulating sportsbetting and handing out licenses which shall not cost less than $500,000, while renewals will be about $250,000.

It is generally expected that Supreme Court’s ruling in favor of New Jersey’s sports bill will create a watershed of similar bills being introduced across the US and would finally open the door to expanded sports-related betting nation-wide.

Source:

“New Jersey Sportsbetting Bill Features Integrity Fee”, Juan Carlos Blanco, playusa.com, May 4, 2018.