New Jersey § 5:12a-16

§ 5:12a-16.

The sums received by the casino from sports wagering or from a joint sports wagering

operation, less only the total of all sums actually paid out as winnings to patrons,

shall not be taxed as gross revenue as specified under section 24 of P.L.1977, c.

110 ( C.5:12-24 ) but shall be subject to an 8.5 percent tax, except that sums received from Internet

wagering on sports events, less only the total of all sums actually paid out as winnings

to patrons, shall be subject to a 13 percent tax, which shall be paid to the Casino

Revenue Fund, and to an additional tax of 1.25 percent which shall be remitted by

the State Treasurer to the Casino Reinvestment Development Authority for marketing

and promotion of the City of Atlantic City, provided, however, that the cash equivalent

value of any merchandise or thing of value included in a jackpot or payout shall not

be included in the total of all sums paid out as winnings to patrons for purposes

of determining revenue under this paragraph. The net revenues actually received by the horse racing permit holder from any sports

wagering operation at the Meadowlands Racetrack, including Internet wagering on sports

events, either jointly established with a casino or established independently or with

non-casino partners, less the total of all sums actually paid out for any operating

expenses and as winnings to patrons, shall be paid by the Meadowlands Racetrack to

the Standardbred Breeders and Owners' Association of New Jersey and the New Jersey

Thoroughbred Horsemen's Association pursuant to the terms of a written agreement between

the Meadowlands Racetrack and each association. A written agreement shall be in effect for as long as a sports wagering operation

is conducted at the Meadowlands Racetrack. The net revenues actually received by the horse racing permit holder from any sports

wagering operation at the Monmouth Park Racetrack, including Internet wagering on

sports events, either jointly established with a casino or established independently

or with non-casino partners, less the total of all sums actually paid out for any

operating expenses and as winnings to patrons, shall be paid by Monmouth Park Racetrack

to the New Jersey Thoroughbred Horsemen's Association pursuant to the terms of a written

agreement between Monmouth Park Racetrack and that association. A written agreement shall be in effect for as long as a sports wagering operation

is conducted at Monmouth Park Racetrack. The net revenues actually received by the horse racing permit holder from any sports

wagering operation at the Freehold Raceway, including Internet wagering on sports

events, either jointly established with a casino or established independently or with

non-casino partners, less the total of all sums actually paid out for any operating

expenses and as winnings to patrons, shall be paid by Freehold Raceway to the Standardbred

Breeders and Owners' Association of New Jersey pursuant to the terms of a written

agreement between Freehold Raceway and that association. A written agreement shall be in effect for as long as a sports wagering operation

is conducted at Freehold Raceway. The sums actually received by the horse racing permit holder from any sports wagering

operation, either jointly established with a casino or established independently or

with non-casino partners, less only the total of all sums actually paid out as winnings

to patrons, shall be subject to an 8.5 percent tax, except that sums received from

Internet wagering on sports events, less only the total of all sums actually paid

out as winnings to patrons, shall be subject to a 13 percent tax, to be collected

by the division and paid to the State General Fund and to an additional tax of 1.25

percent on amounts actually received from a sports wagering operation, less only the

total of all sums actually paid out as winnings to patrons, to be paid, except as

provided below with respect to amounts generated by the Meadowlands racetrack, to

the Department of the Treasury for distribution, upon application by a municipality

or county, to the municipality in which the majority of the racetrack is located and

to the county in which the racetrack is located or to an economic development authority

of that municipality and county with those amounts used for economic development purposes,

which shall include, but not be limited to, improvements to: transportation and infrastructure,

tourism, public safety, and properties located on or near the racetrack, provided,

however, that the cash equivalent value of any merchandise or thing of value included

in a jackpot or payout shall not be included in the total of all sums paid out as

winnings to patrons for purposes of determining revenue under this paragraph. The Department of the Treasury shall establish an account for each eligible municipality

and county and shall ensure that the amounts generated from the racetrack shall only

be distributed to the municipality in which the majority of the racetrack is located

and county in which the racetrack is located with 0.75 percent paid to the municipality

and 0.5 percent paid to the county, except that amounts generated from the Meadowlands

racetrack shall be paid into the intermunicipal account, established pursuant to section

53 of P.L.2015, c. 19 ( C.5:10A-53 ), and used to pay Meadowlands adjustment payments to municipalities in the Meadowlands

district. A percentage of the fee paid for a license to operate a sports pool shall be deposited

into the State General Fund for appropriation by the Legislature to the Department

of Health to provide funds for evidence-based prevention, education, and treatment

programs for compulsive gambling that meet the criteria developed pursuant to section

2 of P.L.1993, c. 229 ( C.26:2-169 ), such as those provided by the Council on Compulsive Gambling of New Jersey, and

including the development and implementation of programs that identify and assist

problem gamblers. The percentage shall be determined by the division.