New Jersey Considers Doubling Sports Betting Tax Rate

Watch New Jersey Considers Doubling Sports Betting Tax Rate - SportsGrid on Dailymotion

Transcript

00:00And finally, let's get to the latest in sports betting taxes, which we've seen some significant

00:05pullback or at least attempt to pull back in a lot of different places. But is it the opposite here,

00:10Sam, in New Jersey? It feels like New York and New Jersey are going in two different directions

00:14here with this. Yeah, well, it's you can figure out why they're going in two different directions

00:20when you look at their tax rates. New Jersey is about 13 percent. New York is a nation high 51

00:25percent. So it's a lot easier to drum up support to reduce a tax that is essentially taking half

00:31your money, more than half your money than it is to drum up support for getting rid of a smaller

00:37tax. So but New Jersey is considering doubling their tax rate from 13 percent to 25 percent.

00:44Governor Phil Murphy has been talking about it as part of his budget plan. Kind of ironic,

00:49considering he was he might be one of the most instrumental people in legalizing sports betting,

00:54not just in New Jersey, but around the country. When New Jersey sought to legalize sports betting

00:59a few years back, the NCAA sued him and sued the state to stop it, which essentially led to

01:05the Supreme Court over repealing the ban. So ironic here now that he's talking about kind

01:09of doubling the tax. And I think that gives him some credibility here. He can't be seen as this

01:14guy who is anti gaming industry, anti sports betting. He's pretty much the reason that we

01:19have it. So it's garnering support in the New Jersey legislature. One senator came out this week,

01:25said he supports the change. It would add about 400 million dollars to the 58 billion dollar

01:31budget, which, again, is a drop in the bucket, considering the budget projects to be a six point

01:36three billion dollar surplus. So there's not this huge need to raise it. There is some opposition

01:41that's been drummed up in support in I'm sorry, to oppose the tax. In the meanwhile, tied to

01:48Atlantic City, they want New Jersey to be a gaming hub, you know, as we continue to have online

01:53sports betting proliferate. But New Jersey, anything they'll do here is very important,

01:58because, again, they're a leader. So if they do manage to get this over the hill, you never know

02:03what can happen from now until the end of the budget process, which is in the end of June,

02:08could be a bargaining chip. If they do manage to get this, it would probably encourage other states

02:13where there's a lower tax rate to do the same. Maybe not a state like New York again, where it's

02:1651% already, but other states around the country where you know, they're seeing New Jersey double

02:21theirs and figuring it's an easy way to make revenue without many changes.