..

What Are the Tax Implications of Betting on Sports in New Jersey?

Written by:
Guest
Published on:
Aug/01/2018

Compared with other states looking to offer legalized sports betting, New Jersey's tax is relatively low. Still, inevitably it is going to be pushed down onto consumers, who in turn will be required to pay taxes on winnings come April (or October for extended filings).  This is how the internationally-licensed long established online betting firms will look to compete, as they do not collect or report tax information to the IRS (nor do they require you to provide your social security number). 


Bets for you: Jets -3 WkK 2, Giants -3 WK 2, Jets to Win Super Bowl 53 75/1 odds (updated September 12)

In New Jersey there will be an 8.5 percent tax to winning sports bets placed at brick-and-mortar locations, along with a 13 percent levy from winning bets made online.

West Virginia, next up to start launching sports books, they will be imposing a 10 percent tax.

"We think 8 percent is fair, we would have loved to collect 30 percent but we always have to keep in the back of our minds that there's a lot of competition out there," said New Jersey assemblyman Eric Houghtaling (D, Monmouth), a sponsor of the bill, in an interview with Forbes. 

William Hill CEO Joe Asher told ESPN.com that the state could eventually handle approximately $10 billion in sports wagers.  His company runs the sports book at Monmouth Racetrack.

Next store neighbor Pennsylvania will have a tough time competing with New Jersey's sports betting sector due to its substantial proposed taxing and licensing fees.  Already they are having a difficult time attracting operators.  They will be attaching a 34 percent tax on revenue, on top of a 2 percent local share. Initial licensing fees for sports book operators in the state could cost as much as $10 million.

- Gilbert Horowitz, Gambling911.com

Gambling News

Odds Released on Meghan Markle Attending Prince Philip's Funeral

Odds Released on Meghan Markle Attending Prince Philip's Funeral

It's a sad day for the world as it was revealed Friday that Prince Edward, husband of Queen Elizabeth II, had passed away.  He was 99 and lived an otherwise amazing life.

New York's Path to Mobile Sports Betting Questionable

New York is expected to allow for two mobile sports betting master licensees with a minimum of four skins, a model many view as least competitive.

Florida Gambling Bills Don't Include Sports Betting

Florida Gambling Bills Don't Include Sports Betting

One of three bills introduced would allow for gambling at former US President Donald Trump's golf resort in Doral just outside Miami

Maryland Sports Betting Would Have No Cap

Maryland Sports Betting Would Have No Cap

Maryland is on its way to becoming the first state with an unlimited (uncapped) number of online sports betting operators, both online and retail.  This means, in theory at least, that the Old Line State could host just about any current legal operator. Wyoming and Tennessee allow unlimited sports betting licensees online.

New York Approves Online Sports Betting: But What Model?

New York Governor Andrew Cuomo has given his blessing to legalized online sports betting in the state as part of the 2022 fiscal year budget.

Syndicate