As integrity fees gain traction among sports leagues, New Jersey is looking for a compromise that would allow the state to keep more of its sports betting income for itself.

Leagues like the National Basketball Association (NBA) and Major League Baseball (MLB) would like to receive a 1 percent “integrity fee,” where part of the money would go toward keeping sports betting fair. More importantly, it would help such leagues profit significantly from the proliferation of legal US sports betting.

Now, New Jersey lawmakers have released a new bill that incorporates a proposed integrity fee. According to NJ Online Gambling, the bill’s twist requires operators to pay the league 2.5 percent of gross gaming revenue, with an upper limit not to exceed $7.5 million.

Additionally, the bill has a unique twist that requires leagues to prove that this money really is going toward sports betting regulation to receive their integrity fee. According to the bill:

“[A] sports governing body whose sports events are wagered upon in New Jersey casinos or racetracks may seek reimbursement for expenses incurred relative to ensuring the integrity of its sports events with respect to sports wagering operations in New Jersey by submitting a claim for such compensation to the Attorney General. Such claims shall be paid exclusively from available funds in the Sports Wagering Integrity Fund.”

Leagues like the NBA have been sending lobbyists to state legislatures around the country, including New Jersey’s, to argue that as the organizers of the games people would be betting on, they deserve a cut of the proceeds. They may be unsatisfied by New Jersey’s effort to give them a smaller piece of the pie.

Even though sports leagues are increasingly enthusiastic about the financial implications of an integrity fee, they have historically been the most vocal opponents of legal sports betting. The NFL and MLB are amongst the leagues asking the Supreme Court to uphold the ban against sports betting in the soon-to-be-decided case Murphy v. NCAA. Both the NBA and MLB are opposing a legal sports betting bill in Iowa because it lacks an integrity fee, while at the same time they are sending lobbyists to states like New Jersey. This behavior has caused them to earn some detractors, some of whom have strong influence in the sports betting sector.

Dennis Drazin, CEO of Monmouth Park, New Jersey’s premiere horse-racing track, said sports leagues “have some nerve” to try to influence the way states regulate sports betting.

“The leagues have many self-inflicted integrity concerns, but NJ should not provide them an opportunity to receive revenue in the form of an integrity fee to police their games when they have the same obligation given the enormous illegal market which already exists,” Drazin told Legal Sports Report in an interview.

The Supreme Court has not yet issued its decision regarding the federal prohibition on sports betting, but West Virginia isn’t waiting around. The Mountain State has now become the latest state to legalize sports betting within its borders.

In March, the West Virginia Lottery Sports Wagering Act was passed by the state’s House and Senate. Though Governor Jim Justice did not sign the bill, his signature was not required for the passage, according to a press release from the governor’s office.

The release indicates that the Governor is still awaiting the Supreme Court’s ruling before he moves forward. “After the U.S. Supreme Court issues its decision on sports wagering, to address any provisions of the legislation that might be in conflict, I will ask the legislature to look at the advantages of partnering with the major sports leagues,” he wrote.

However, things may move faster than that. Already, West Virginia has become a battleground between states and sports leagues as the state legislature considers the Major League Baseball and the National Basketball Association’s proposal to receive a 1 percent “integrity fee” on all sports betting transactions.

The MLB and the NBA maintain that a large portion of this proposed fee will go towards overseeing sports betting and keeping it honest and safe. But West Virginia Lottery General Counsel Danielle Boyd indicated in a statement that the state can do this on its own.

“We are committed to ensuring that we maintain the security and integrity of the lottery and that the casinos are committed to doing the same for the games that will be offered on their properties and via their mobile apps,” she said.

If the Supreme Court overturns the prohibition on sports betting, West Virginia’s law will allow legal sports betting within its borders in 90 days. If the legislature reaches a compromise with sports leagues before that time, this state law may present a possible model for moving forward for other states seeking to legalize sports betting.

Is New York getting ready to jump on the bandwagon and bring legalized sports betting to the Empire State? The bill recently introduced by State Senator John Bonacic, a Republican from Orange County, indicates that New York, like some other states, is optimistic about the Supreme Court’s pending decision in Murphy (formerly Christie) v. NCAA.

If, as many expect, the Supreme Court rules that the Professional and Amateur Sports Protection Act (PASPA) is unconstitutional, this could pave the way for states like New York to welcome sports betting to its regulated economy, along with the healthy tax revenue that will surely accompany it.

Bonacic, who chairs the Senate Racing, Wagering and Gaming Committee, envisions the state’s share of the revenue generated by legalized sports betting to bring in between $10 to $30 million a year, a windfall he would direct towards education funding.

The bill proposes to allow four New York casinos to operate Las Vegas-style “betting books” on sports like baseball, football, and basketball. The license would also allow for mobile wagering, but bettors would have to sign up in advance at one of the four casinos. It is unclear if the opportunity would also be extended to New York’s tribal casinos.

If this bill were to become a law, the state would effectively net a new source of income in fees. The bill proposes a tax rate on gross gaming revenue of 10.5 percent, with 8.5 percent of that amount going to the state. Leagues would gain the other percentage under certain conditions, in what the bill calls an “integrity fee.”

However, there will be no forward movement on the bill while the gaming industry awaits the Supreme Court ruling, expected sometime this spring. If PASPA is indeed overturned, New York will have the foundation in place to begin moving forward on this bill in earnest. In a state which worships its mythic sports teams like the Jets, the Yankees, and the Nets, the possibilities are endless.