outlookindia0471   Album Posted Apr.11th, 2024, viewed 67 times

New Jersey bill proposes 30% tax hike on online sports betting and casino games

New Jersey is considering raising its online casino gaming and sports betting tax rates by up to 30%. It also cites Senator John McKeon as its lead sponsor of a tax rate increase bill named Bill S3064. However, there is no summary of the NJ Casino Gaming and Sports Betting bill.

It is possible that legislation for drafting the Office of Legislation (OLS) has not yet progressed. In this regard, LSR asked McKean to comment on March 26, but did not provide a response.

Details of the current NJ Sports excess tax rate:

Garden State's current tax rate on online sports betting is 14.25 percent. However, the two largest states in the U.S. are Pennsylvania (36 percent) and New York (51 percent).

Since online sports betting began in New York in January 2002, it has provided much more tax revenue compared to what NJ did during February this year.

The statistics are as follows:

NJ sports wagering

14.1% successful tax rate in that period
$286.7 million in tax revenue
$26.1 billion in handle
NY sports wagering

50.8% successful tax rate in that period
$1.73 billion in tax revenue
$39.2 billion in handle
Had NJ collected a 30% tax throughout that period, its overall income would have been $609.7m.

Online casino tax details:

As for the details of online casino taxes, let’s go back to 2013 when the Garden State first started online casino operations, with an overall of $1.36bln in taxes accumulated at a succesful rate of 17.4%. If we apply the said 30% tax retrospectively, NJ theoretically failed to generate $980m in extra income during that period.

As for Pennsylvania, which taxes online casino income at the nation’s biggest commercial rate, it has generated more from online casinos since its own debut in 2019, at $2.18bln, than NJ did in 2013.

Regarding NY in particular, tries to first reduce the tax rate in the state by raising the number of operators didn’t bear fruit. In this regard, during the first month of last year, Jason Robins, the CEO of DraftKings, proposed to the regulators of the said state that without a tax rate cut, the operator may be “forced” to provide poor odds in NY sports wagering.

Illinois also wants a tax increase:

Illinois Gov. JB Pritzker proposed raising the tax rate on sports betting from 15% to 35% in the FY2025 executive budget. But in Ohio, Gov. Mike DeWine introduced a law in FY2024/25 that would raise the tax rate on sports betting from 10% to 20%.

In the meantime, Kansas and Michigan have successfully applied tax rates of less than 6% due to their promotional deductible allocation scheme. The same framework for PA has successfully lowered legal rates from 36% to about 24%, according to a legitimate sports report (LSR).

Casinos in Atlantic City make some money from online casinos in New Jersey (NJ). However, this is very small compared to what you get from people who gamble directly, but it is still important.

This means that if the aforementioned bill is passed, their revenue will be significantly reduced, and that's why they are likely to express significant opposition to the bill, PlayUSA analyzed. 파워볼사이트 추천