Caputo & Murphy Bill Permitting Casinos, Racetracks to Deduct Promotional Gaming Credits from Annual Wagering Revenue on Tax Returns Passes Assembly
(TRENTON) – With many New Jersey casinos and racetracks utilizing promotional gaming credits to attract new sports betting participants, a bill sponsored by Assembly Democrats Ralph Caputo and Carol Murphy would allow these businesses to deduct those credits from their annual wagering revenue on tax returns. The legislation unanimously passed the full Assembly Thursday.
This bill (A-4002) clarifies that sports wagering credits would be deducted from a casino’s sports wagering revenue, which is taxed separately from general gross revenue. In addition, this bill would make the deduction available to racetracks, which are excluded under existing law.
Upon the bill’s passage, Assemblyman Caputo (D-Essex) and Assemblywoman Murphy (D-Burlington) issued the following joint statement:
“Despite an increase in online sports betting in recent months, many of our casinos and racetracks have suffered significant losses due to necessary closures and restrictions during this pandemic. At a time when many of these businesses are struggling to stay afloat and keep their workers employed, we need to help relieve any undue burden on the industry. This bill will allow these businesses to deduct revenue from free wagering credits given out to entice new players. It’s only fair casinos and racetracks be taxed on their actual sports wagering revenue and not a larger, inaccurate number that would increase taxes owed to the state.”