..

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

Feds Raid Home of Offshore Sportsbook Owner, Husband of Costa Rica Super Model

Gary Austin ran tout services, sportsbooks in Costa Rica, before that, Vegas.

Sports Betting Beat - July 24, 2021: Sports Betting Could Soon Be Allowed in Chicago

Sports Betting Beat - July 24, 2021: Sports Betting Could Soon Be Allowed in Chicago

While it's true that Illinois has legalized sports betting, the state's largest city (3nd biggest in the US), Chicago, has forbidden firms from taking bets there.  That could all change....though probably not until after the 2021 NFL season.

Early Bettors Flip Silva to Favorite Against Jake Paul

Early Bettors Flip Silva to Favorite Against Jake Paul

On Thursday, SportsBetting.ag released a line for the potential boxing bout between Anderson Silva and Jake Paul. Silva was positioned as a +160 underdog while Paul was a -200 favorite.

Boston Red Sox Betting Trends, Series Previews, Starting Pitcher Analyses

Boston Red Sox Betting Trends, Series Previews, Starting Pitcher Analyses

Gambling911.com has your updated betting analysis for the Boston Red Sox updated July 23, 2021.

House OKs Sports Betting Bill But Fate in Senate Uncertain

House OKs Sports Betting Bill But Fate in Senate Uncertain

Massachusetts House lawmakers have overwhelming approved a bill to legalize sports betting in the state, but it’s fate in the state Senate remains uncertain.

Syndicate