If you can’t beat ’em… tax ’em.
That’s pretty much the message one New Jersey legislator is sending to the “sweepstakes” gaming world. A bill dropped on 16 January that would turn the unregulated sweepstakes industry in New Jersey into nothing more – or less – than the regulated sports betting and icasino market.
Assemblyman Clinton Calabrese introduced A5196, which seeks to take the grey area that is gambling with sweepstakes prizing and turn into solid black (for the state). Calabrese is a third generation New Jersey politician and is vice chair of the Touring, Gaming and the Arts committee.
Under the legislation, would-be sweepstakes operators would be governed and licensed – and taxed. This would make them just like every other online sportsbook and casino in the state.
Sweepstakes would have to partner with casinos
Should the bill pass, operators would be required to obtain a casino service industry enterprise license and an internet gaming permit. They would also be required to partner with an existing licensed casino.
They would be under direct oversight of the New Jersey Division of Gaming Enforcement. In addition, sweepstakes would have to have bi-annual audits to retain licensing. They would also be required to have an initial third-party audit to verify operational integrity and financial standing.
Licensed sweepstakes operators would be subject to the same requirements as other internet gaming operators. These include employee background checks, age verification (minimum age 21), licensing and permit fees and, most importantly for the state, standard gaming taxes on gross revenue. Current tax rates are 13% on online sports betting and 15% on online casino.
Read the full story here.
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Original article: https://igamingbusiness.com/gaming/online-casino/new-jersey-sweepstakes-legal-bill/
