Sports betting tax boost for NJ casino authority
New Jersey Governor Phil Murphy has signed off on a bill that will funnel more funds from legalised sports betting into public and private projects across the state.
From December, 1.25% of sports wagering revenue in the state will go into the Casino Reinvestment Development Authority (CRDA), which oversees the distribution of casino reinvestment into initiatives state-wide.
New Jersey moved to legalise sports betting in June shortly after the Supreme Court voted to withdraw PASPA, which had previously blocked the state from regulating such activities.
Legalised sports betting has so far produced around $16.5m (£12.5m/€14.3m) in New Jersey. This includes almost $3m in online wagering in August.
New Jersey is due to announce results for September on Friday, with NJDGE director David Rebuck telling delegates at an event in Las Vegas this week that the numbers will be “stunning” for the month that saw the start of the NFL season.
Receiving a portion of revenue from this growing market will come as a major boost to the CRDA, which has spent more than $2bn on projects across the state since its foundation in 1984. Casinos also contribute 1.25% of gross revenue to the CRDA.
However, the governmental agency suffered a blow in 2016 when lawmakers opted to use the casino investment alternative tax to help pay debt in Atlantic City.
The CRDA said that the authority lost nearly $22m in revenue as a result, according to the Associated Press.