New Jersey § 5:12a-16

§ 5:12a-16.

a. A casino or racetrack that holds a sports wagering license shall receive an annual

deduction from the gross revenue from non-Internet sports wagering taxed pursuant

to section 7 of P.L.2018, c. 33 ( C.5:12A-16 ) in an amount equal to the promotional gaming credits actually wagered by patrons,

that are reported by that licensee in its annual tax return. b. A casino or racetrack that holds a sports wagering license shall be allowed the

deduction, pursuant to subsection a. of this section, from gross revenues from non-Internet

sports wagering for a tax year for the total value of promotional gaming credits actually

wagered by patrons at all licensed casinos and racetracks for that tax year in excess

of $8,000,000. For the first tax year in which this act takes effect, the division shall reduce

the $8,000,000 deduction threshold for that tax year in proportion to the part of

the tax year that has elapsed prior to the effective date of this act. 1 c. (1) The division shall establish, by regulation, procedures to ensure that the

promotional gaming credit deduction established pursuant to this section does not

result in a negative fiscal impact to the Casino Revenue Fund, or the General Fund

as appropriate under section 7 of P.L.2018, c. 33 ( C.5:12A-16 ). If necessary, the division may reduce the value of the available deduction to eliminate

any negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate,

attributable solely to the deduction and not to other economic or other factors that

cause a negative fiscal impact to the Casino Revenue Fund, or the General Fund as

appropriate. (2) For the purposes of this subsection, “ negative fiscal impact to the Casino Revenue Fund or the General Fund ” shall mean that the amount generated from taxation of promotional gaming credits

falls below the level generated in calendar year 2017. d. No deduction shall be allowed pursuant to this section for any promotional gaming

credits included in the calculation of any other deduction for promotional gaming

credits, including, but not limited to, the deduction allowed pursuant to section

2 of P.L.2008, c. 12 ( C.5:12-144.2 ). e. As used in this section, “ promotional gaming credit ” means a sports wagering credit or other item approved by the division that is issued

by a casino or racetrack that holds a sports wagering license to a patron for the

purpose of enabling the placement of a wager in a sports pool in the licensee's casino

or racetrack. No such credit shall be reported as a promotional gaming credit unless the licensee

can establish that the credit was issued by the licensee and received from a patron

as a wager in a sports pool in the licensee's casino or racetrack. 1

L.2021, c. 450, eff. Jan. 18, 2022.