Market Focus: New Jersey
New Jersey has a long history of gambling through the presence of the north-eastern hub of Atlantic City, with its boardwalk empires and coastline dominating the US market during the early part of the 20th century. In 1978, state legislators amended the New Jersey constitution to include the first Casino Control Act, which limited land-based gambling to Atlantic City.
Advertising of online gambling is permitted in New Jersey, however as part of regulations, all content be reviewed by the DGE prior to airing. In addition, all TV adverts must display the "Bet With Your Head Not Over It", together with relevant problem gambling messages and helplines. Stephen Schrier, partner at Blank Rome LLP, believes these efforts are making the right impact on responsible gambling issues. "There is always an argument that more money could be spent, or other limitation should be imposed, but what is in place does significantly address responsible gaming."
Online operators are taxed on GGR at a rate of 15% per annum. The 8% tax rate, traditionally imposed with land-based operations in Atlantic City, does not apply to online operators. There is, however, an additional 2.5% investment alternative tax levied on GGR. Addressing this tax framework, Schrier believes that the tax rate is aiding the development of the New Jersey market: "New Jersey's tax rate is one of the lowest rates so far. The market has grown each month, and does not appear to be slowing. The relatively low tax rate has encouraged new games and new online companies to compete in New Jersey," Schrier adds.
To read the full article, please click here.
"Market Focus: New Jersey," by Robert Simmons was published in the January 2018 issue of EGR Compliance.