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US – New Jersey casinos to get tax break on promotional gaming credits

By - 21 September 2020

With many New Jersey casinos and racetracks using promotional gaming credits to attract new sports betting customers, a bill sponsored by Assemblyman Ralph Caputo will allow these amounts to be deducted from tax returns.

The New Jersey Assembly Appropriations Committee has now approved these new laws allowing casinos to deduct promotional gaming credits from gross sports betting revenue above certain thresholds from being taxed. It will see operators take off gross revenue above $12m for online/mobile betting and $8m for in-person/retail betting generated from either free or promotional bets.

Assemblyman Ralph Caputo, D-Essex, the bill’s primary sponsor and a former Atlantic City casino executive, outlined that the venues ‘have suffered significant losses due to necessary closures and restrictions during this pandemic.’

He said: “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.”

Steve Callender, Regional President of Caesars Entertainment and president of the Casino Association of New Jersey, said this year was a ‘critical’ time and that the tax incentives would help.

He said: “We need it because we want to get back to the numbers that we were achieving before and would like to be at. We’d like to bring more team members back to work, which is important to us.”

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