Nj Sports Gambling Revenue

Posted on
Nj Sports Gambling Revenue Rating: 3,7/5 8134 reviews

New Jersey sports books are also closing in on Nevada, even though that state has had sports betting since 1949. Total handle at Nevada sports books through the first 11 months of 2019 were $4.74. A syracuse.com review of the four Upstate commercial casino’s revenue reports through Nov. 3 shows $6.1 million in sports betting revenues up to that point. Rivers led the way, with $2.9 million. The New Jersey Division of Gaming Enforcement (DGE) publishes the monthly online gambling & sports betting revenue for each operator in NJ. Some casinos operate more than one website or mobile app brand name. Sports betting is now among the many forms of gambling winnings that are subject to the New Jersey Gross Income Tax, including legalized gambling (sports betting, casino, racetrack, etc.) and illegal gambling. Lottery: New Jersey Lottery winnings from prize amounts exceeding $10,000 became subject to the Gross Income Tax in January 2009.

ATLANTIC CITY, N.J. (AP) — New Jersey’s fast-growing sports betting market blew past its own national record in September, taking in more than $748 million in bets from sports gamblers finally able to wager on football amid the coronavirus outbreak.

Figures released Thursday from the New Jersey Division of Gaming Enforcement show Atlantic City’s nine casinos and the three horse racing tracks that offer sports betting handled over $748 million in bets, easily surpassing the national monthly record they set just a month earlier, when $668 million was wagered on sports in August.

Both figures easily eclipsed what had been the U.S. record of $614 million set in Nevada in Nov. 2019.

So far this year, New Jersey casinos and tracks have taken in nearly $3.3 billion in sports bets alone. That equals or surpasses what Atlantic City used to make in an entire year from casino gambling before sports betting was legalized.

New Jersey won a U.S. Supreme Court case in 2018 allowing all 50 states to offer legal sports betting should they so choose. It quickly dominated the East Coast market and challenged Nevada for the national lead.

The $748 million includes the total amount of bets accepted by the casinos and tracks; after paying off winning bets and expenses, they kept $45 million of that total.

Sports

Including casino games, the gambling industry in New Jersey won $323.2 million in September, an increase of 6.5% over last September, when there was no pandemic and casinos were operating at full capacity. Casinos are currently limited to 25% occupancy as a precaution to prevent the spread of the coronavirus.

The Borgata won $64 million in September, down 2.8% from a year earlier. Golden Nugget won $37.5 million, up 16.3%; Hard Rock won $35.8 million, up 12.5%, and the Ocean Casino Resort won $29.5 million, up nearly 22%.

The Tropicana won $26.1 million, down nearly 10%; Harrah’s won $19.5 million, down 26.6%, and Caesars won $18.9%, down 1.8%.

Resorts won $13.9%, down 7.5%; and Bally’s won $12.9%, down 15.6%.

The Ocean Casino showed the largest percentage increase in September revenue in Atlantic City, and CEO Terry Glebocki said that was due to serval factors.

“The combination of Labor Day weekend and the return of indoor dining, limited to 25%, afforded us the opportunity in September to continue the momentum created here at Ocean,” she said. “Our guests have enjoyed dining again at their favorite restaurants within our casino resort, and our year-over-year gaming revenue growth of nearly 27% is indicative of the successes we have achieved.”

James Plousis, chairman of the New Jersey Casino Control Commission, was heartened by the pace of recovery of casino gambling revenue.

“Casino win was 85 percent of last September’s performance, aided by the reopening of casino restaurants on September 4, and the resumption of food and beverage service on casino floors,” he said. “These results were promising in the midst of continuing travel advisories that decrease visits from out of state, as well as restrictions on capacity, amenities and entertainment that have made 2020 not reasonably comparable to last year.”

Nj Sports Gambling Revenue

Internet gambling revenue was $87.6 million in September, up 113% from the $41.1 million it produced in Sept. 2019.

The Freehold Raceway began taking in-person bets on Sept. 24, making it the third horse racing track in the New Jersey sports betting market. It has not yet been approved for mobile sports betting and reported a loss of almost $45,000 in the final week of the month.

The Meadowlands Racetrack in East Rutherford, near New York City, continued to dominate sports betting in the state, with $28.1 million in revenue in September. Monmouth Park in Oceanport, about 18 miles (29 kilometers) east of Freehold near the Jersey Shore, made nearly $3.5 million.

(©Copyright 2020 by The Associated Press. All Rights Reserved.)

Nj Sports Gambling RevenueNj Sports Gambling Revenue

Lottery and Gambling Winnings

Winning the Lottery or scoring on a sports wager can change your life in profound ways. Congratulations on your lucky break!

Just remember that your good fortune includes a responsibility to pay taxes and fees on those winnings.

Gambling Winnings:
In 2018, Governor Phil Murphy signed a law that authorized legal sports betting in New Jersey. The law (A4111) allows people, age 21 and over, to place sports bets over the internet or in person at New Jersey's casinos, racetracks, and former racetracks. Sports betting is now among the many forms of gambling winnings that are subject to the New Jersey Gross Income Tax, including legalized gambling (sports betting, casino, racetrack, etc.) and illegal gambling.

Lottery:
New Jersey Lottery winnings from prize amounts exceeding $10,000 became subject to the Gross Income Tax in January 2009.

Withholding Rate from Gambling Winnings
New Jersey Income Tax is withheld at an amount equal to three percent (3%) of the payout for both New Jersey residents and nonresidents (N.J.S.A. 54A:5.1(g)).

Withholding Rate from Lottery Winnings
The rate is determined by the amount of the payout. If a prize is taxable (i.e., over $10,000), the entire amount of the payout is subject to withholding, not just the amount in excess of $10,000. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows:

  • 5% for Lottery payouts between $10,001 and $500,000;
  • 8% for Lottery payouts over $500,000; and
  • 8% for Lottery payouts over $10,000, if the claimant does not provide a valid Taxpayer Identification Number.
New Jersey Income Tax withholding is based on the total amount of the prize won. For example, if two people win a New Jersey Lottery prize of $14,000 and split the proceeds equally, $7,000 of income is taxable to each person and is subject to the 5% withholding rate. Both taxpayers would be subject to the 5% withholding because the total amount of the prize exceeded $10,000.

Companies that obtain the right to Lottery payments from the winner and receive Lottery payments are also subject to New Jersey withholdings. Each company is required to file for a refund of the tax withheld, if applicable.

Lottery

New Jersey Lottery winnings from prize amounts exceeding $10,000 are taxable. The individual prize amount is the determining factor of taxability, not the total amount of Lottery winnings during the year.

  • For example, if a person won the New Jersey Lottery twice in the same year, and the winning prize amounts were $5,000 and $6,000, these winnings would not be subject to New Jersey Gross Income Tax. However, if that person won the Lottery once and received a prize of $11,000, the winnings would be taxable.
  • This standard for taxability applies to both residents and nonresidents.
  • The New Jersey Lottery permits donating, splitting, and assigning Lottery proceeds to someone else or to a charity. If you choose to donate, split, or assign your Lottery winnings, in whole or in part, the value is taxable to the recipient in the same way as it is for federal income tax purposes.
Gambling and Lottery

Making Estimated Payments
If you will not have enough withholdings to cover your New Jersey Income Tax liability, you must make estimated payments to avoid interest and penalties. For more information on estimated payments, see GIT-8, Estimating Income Taxes.

Gambling

Out-of-State Sales:
Out-of-state lottery winnings are taxable for New Jersey Gross Income Tax purposes regardless of the amount.

Nj Sports Gambling Tax Revenue

Gambling winnings from a New Jersey location are taxable to nonresidents. Gambling includes the activities of sports betting and placing bets at casinos and racetracks.

Calculating Taxable Income
You may use your gambling losses to offset gambling winnings from the same year as long as they do not exceed your total winnings. If your losses were greater than your winnings, you cannot report the negative figure on your New Jersey tax return. You must claim zero income for net gambling winnings. For more information, see TB-20(R), Gambling Winnings or Losses.

Nj Sports Gambling Revenue

You may be required to substantiate gambling losses used to offset winnings reported on your New Jersey tax return. Evidence of losses can include your losing tickets, a daily log or journal of wins and losses, canceled checks, notes, etc. You are not required to provide a detailed rider of gambling winnings and losses with your New Jersey tax return. However, if you report gambling winnings (net of losses) on your New Jersey return, you must attach a supporting statement indicating your total winnings and losses.

Nj Sports Gambling Revenues

Reporting Taxable Winnings
Include taxable New Jersey Lottery and gambling winnings in the category of “net gambling winnings” on your New Jersey Gross Income Tax return.