New Jersey Holds Joint Committee Meeting on Sports Betting Impact
On October 24, the NJ Senate Committee on State Government, Wagering, Tourism, and Historic Preservation held a joint committee hearing with the NJ Assembly Committee on Tourism, Gaming and the Arts.
Committee members heard testimony from invited guests on online sports betting and its impact on NJ. It was an educational/informational hearing for committee members and an opportunity to take a comprehensive look at economic and social impacts.
Among the topics discussed were:
- Economic impact of online sports betting
- Advertising
- Responsible Gaming
- Cannibalization of brick-and-mortar casinos
- The illegal black market
- Discussion of harassment of college athletes and prohibiting prop bets on college athletes
The tax rate was also discussed. Sen McKeon, Vice Chair of the Senate Committee held the hearing and is the lawmaker who introduced legislation to raise the sports betting and iGaming tax rate to 30%. In the hearing, Sen McKeon talked about the disparity in tax rates across the country and mentioned other states with higher tax rates.
While the New Jersey legislature is still technically in session, a tax bill like this is unlikely to proceed as they have already completed work on the 2025 budget. But we should expect to see this bill re-emerge next year in New Jersey, especially since Sen. McKeon mentioned in the hearing today that projections for the upcoming budget year aren’t great.
iDEA will continue to monitor the activity of the New Jersey Legislature.