New Jersey Lawmakers Propose Sports Betting Fee For Leagues



Two New Jersey lawmakers are proposing a fee on sports betting that would go to the professional sports leagues. Atlantic County State Sen. Jim Whelan and Assemblyman Vincent Mazzeo released a letter addressed to NBA commissioner Adam Silver thanking him for his comments that sports betting is inevitable.

Two New Jersey lawmakers are proposing a fee on sports betting that would go to the professional sports leagues. Atlantic County State Sen. Jim Whelan and Assemblyman Vincent Mazzeo released a letter addressed to NBA commissioner Adam Silver thanking him for his comments that sports betting is inevitable.

In the letter, the two state lawmakers proposed a solution to the issue that legalized sports betting may jeopardize the "integrity of the game," one of the main sports betting concerns expressed by the NCAA and professional leagues. "While we strongly support the legalization of sports betting in New Jersey and the economic benefits it will bring to Atlantic City, we are cognizant that sports leagues like the NBA need the necessary resources to protect the integrity and fairness of games," the letter dated September 15 states.

The proposal includes a 0.25% fee on the amount wagered, known as the handle, at New Jersey sportsbooks. These funds would go towards creating a "Game Integrity Department" at league offices, according to the letter. Said department will be tasked with investigating suspicious betting patterns and opponents involved in those contests.

The problem may come with enforcing the regulation. How exactly would the State of New Jersey be able to enforce these proposed fees? Sportsbook operators would have to work on the honor system with sports leagues due to the unusual situation of the repeal of the law prohibiting sports gambling without the concurrent implementation of any broad-based state regulations or licensing. It may be a game of catch-up for some time.

It also may not be the only fee paid on New Jersey sports handles. The Internal Revenue Service has a sports betting excise tax of 0.25% on "any wager authorized under the law of the state in which accepted." The tax may actually be 2% of all sports wagers in New Jersey as state law does not expressly permit the activity.

This is a reprint from forbes.com. to view the original, click here.


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