New Jersey Gov redirects sports betting taxes

The governor signed a bill that directs sports betting taxes to the CRDA.

US.- New Jersey Governor Phil Murphy signed a legislation that sends 1.25% of sports betting revenue to the Casino Reinvestment Development Authority (CRDA). This additional tax is added to the 8.5% of revenue generated at land-based venues and the 13% that is currently taxed on mobile and online sports betting. The new tax takes effect in December.

The government said that the sports betting tax from casinos will be used for marketing and promotion of Atlantic City, the state’s gambling hub. Revenue tax from sports betting activities at the two state racetracks will be distributed directly to the facility’s host municipality.

Mayor Frank Gilliam, who has a seat on the CRDA Board of Directors, said he wasn’t excited about the authority receiving money from businesses in the city. “As mayor, I’m never going to be happy with revenue generated in Atlantic City going to a state agency when it could have been used to help the city. History has shown that marketing money has not been spent wisely.”

Larry Sieg, CRDA director of communications and marketing, said: “After a three-year hiatus, we are looking forward to filling the void with much needed promotion of Atlantic City as a world-class vacation destination. Our team looks forward to having the opportunity to once again get the DO AC brand into the consumer market to increase visitation and economic impact.”