Nj Sports Betting Tax Revenue
Nj Sports Gambling Tax Revenues

Tax: Gross Income Tax Under the provisions of N.J.S.A. 54A:5.1(g), all gambling winnings, whether they are the result of legalized gambling (casino, racetrack, etc.) or illegal gambling, are subject to the New Jersey Gross Income Tax. New Jersey Lottery winnings were not taxable for New Jersey Gross Income Tax purposes prior to 2009. Sports betting winnings are subject to the same 24% federal tax rate as other gambling winnings. The winners are also responsible for paying the applicable local taxes. The current NJ tax rate is 8.5% for retail sportsbook wins and 13% for wins at online sportsbooks or on mobile apps. Total gaming taxes reflect 8% of taxable casino gross revenue, 15% of Internet gaming gross revenue, 8.5% tax on casino and racetrack sports wagering gross revenue and 13% tax on casino and racetrack sports wagering Internet gross revenue.

New Jersey bettors wagered $16.4 million through the first 17 days of legal NJ sports betting. Sportsbooks recorded just less than $3.5 million in total revenue.

Poker gratis texas holdem 2. Reported revenue includes futures bets which have not yet been paid out, such as those on the World Cup. It also includes any winning tickets not redeemed by June 30. Those bets total about $2.25 million.

Removing those bets, books cleared about $1.2 million in clean revenue for the period, holding 7.8 percent of settled wagers.

Those figures come from the Division of Gaming Enforcement, which released its monthly report on Thursday afternoon. The sports betting data covers the period between the June 14 launch and the end of the month.

NJ sports betting data

Quick reminder on handle vs. revenue: The term “handle” represents the total sum of all wagers placed. “Revenue” is what’s left over after sportsbooks pay out the winning tickets — the gross profit.

NJ data is separated by operator, of which there are currently three. The revenue numbers break down like this, bearing in mind that the Ocean Resort Casino just opened on June 28:

Monmouth Park: $2,279,166
Borgata: $986,831
Ocean Resort Casino: $192,671

Betting handle is also itemized by sport and type:

MLB: $10.1 million total, $130,177 futures
Soccer: $2.2 million total, $500,247 futures
NFL: $280,611 futures

Land-based sports betting revenue is taxed at a rate of 8.5 percent, so the state of New Jersey earned just less than $300,000 across the reporting period. Projections vary, but some lawmakers expect to realize annual tax revenue approaching $100 million.

If we extrapolated the NJ sports betting numbers across a 30-day month, they’d look like this:

Handle: $28,958,151
Revenue: $6,103,532
Taxes: $518,801

The reporting method makes direct comparison a little tricky, but you can see the recent data from other states here:

Monmouth Park setting the pace

Monmouth Park took in close to $2.3 million, pretty much doubling the total from the other two properties combined. The track accounted for almost a third of all NJ sports betting revenue for the period.

Betting handle is not broken down by operator, but the Asbury Park Press reports $8,176,212 in total wagers at Monmouth Park.

That seems strong, especially when you consider geography. This is no knock to the venue, but Monmouth Park’s location in Oceanport keeps it a bit isolated. It’s a horse racing venue — not a casino — so it’s not open around the clock, and traffic tends to comes in spurts.

William Hill US operates the sportsbook at Monmouth Park, and CEO Joe Asher is pleased with the numbers.

While it’s still early, we’re obviously off to a great start. We always knew there was a big appetite for legal sports betting during the years of litigation, and now it is being proven. We are proud to be creating new jobs in New Jersey and bringing excitement to our customers. We can’t wait until football season.

Borgata, on the other hand, is one of the jewels in the Atlantic City casino empire. The Marina District property was the freshest in town until Hard Rock and the ORC opened. Historically, it is by far the highest-earning casino in the state, so you’d expect a strong performance from its sportsbook.

A million bucks in sports betting revenue is nothing to laugh at, but Borgata should be a little concerned about the competition it’s about to face.

Growth in the short-term forecast

Each of the nine NJ casinos can apply for a sports betting license, as can the state’s three horse racing tracks. Only the properties listed have rolled out so far, but at least one more will be taking bets shortly.

FanDuel, the transitioning daily fantasy sports site now owned by Paddy Power Betfair, will use Meadowlands Racetrack as its springboard into the new vertical. The first-ever FanDuel Sportsbook opens this Saturday.

Hard Rock, Resorts and the Golden Nugget have also divulged plans to open books, and at least one of the three Caesars properties will likely do the same at some point.

What’s more, operators are now permitted to start accepting bets through online and mobile channels. Remote betting should drive the majority of revenue once the market matures, and bookmakers are lining up to participate.

Count DraftKings among them. The other DFS heavyweight recently entered into a partnership with Resorts to launch an online/mobile version of its DraftKings Sportsbook. Unlike FanDuel, it likely won’t have its branding on the brick-and-mortar location.

Nj Sports Betting Tax Revenue

Read about the other partnerships here.

This is all very good news for the state’s bank account. Once online/mobile betting begins, New Jersey will tax those wagers at an increased rate of 14.25 percent.

Any sliver of doubt about whether mobile New Jersey sports betting is the future faded emphatically in December 2019.

The Garden Statereported its sports betting revenue numbers for the month Tuesday and wagering via NJ sports betting apps reached a new apex: nearly nine out of every 10 bets. The hard total of roughly 88% exceeds even the lofty 85% watermark set for most of 2019 in NJ.

The report shows handle of more than $557 million and revenue of $29.4 million for December. That’s a hold of about 5.3%, right on Nevada’s historical average.

NJ sports betting generated more than $4.58 billion in handle in 2019. Revenue of nearly $300 million equated to better than $36 million going into New Jersey state tax coffers. Combined with local assessments dedicated to Atlantic City, that figure rises to more than $40 million.

FanDuel cements 2019 NJ sports betting surge

Six months of trailing its primary rival faded into the swamps last year as FanDuel Sportsbook overtook DraftKings Sportsbook.

FanDuel finished the year as the early market leader in New Jersey, posting more than $14 million in December revenue. DraftKings took the silver with more than $9 million in hold for the final month of the year.

For 2019, FanDuel accounted for nearly half of NJ sports betting revenue with better than $149 million through its Meadowlands Racetrack license. DraftKings posted more than $79 million via its Resorts Digital license. (Both licenses include other operators as well.)

DraftKings ascended in 2018 in part because of its first-mover advantage in mobile, launching weeks ahead of competitors. FanDuel steadily eroded that edge heading into 2019, using its retail presence at Meadowlands Racetrack to help build its mobile business.

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Nj Sports Gambling Tax Revenue