New Jersey Adds Additional 1.25% Tax on Sports Betting Revenue Less than five months after New Jersey won the Supreme Court battle that allowed its casinos to offer sports betting, taxes are going up. New Jersey sports betting handle totaled more than $4.58 billion in 2019, and taxes on revenue won by the mobile and land-based sportsbook operators delivered over $36.5 million to state and local.
Single-game sports betting within the United States was only legal in Nevada until May 14, 2018. On that date, the SCOTUS struck downPASPA, effectively unlocking the legislative key for states that wished to legalize and regulate sports betting within their borders. In the months prior to that date, a handful of states had proactively passed legislation designed to go into effect or further mature if and when the PASPA was eradicated.
Delaware was the first state outside of Nevada to launch single-game sports betting on June 5, taking advantage of its status as an original 'grandfathered' state under PASPA. That allowed it to begin taking single-game wagers without any immediate further legislation. New Jersey soon followed, officially taking its first wager June 14.
A total of seven states had legal sports betting markets by the end of 2018. That number climbed to 15 in 2019. Below we take a look at the monthly sports betting handle and hold for each, along with the key facts to know in each market.
For a more in-depth breakdown of these numbers, visit LegalSportsReport.com.
Where is legal sports betting available in the U.S.?
Nevada
Legalized land-based wagering: 1949
Legalized online/mobile wagering: 2010
Tax Rate: 6.75 percent for land-based sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| January 2018 | $418.6 million | $25.1 million | 6.0% | Legal Sports Report |
| February 2018 | $411.7 million | $10.7 million | 2.6% | Legal Sports Report |
| March 2018 | $522 million | $34.2 million | 6.6% | Legal Sports Report |
| April 2018 | $316 million | $16.3 million | 5.2% | Legal Sports Report |
| May 2018 | $315.5 million | $20.5 million | 6.5% | Legal Sports Report |
| June 2018 | $286.5 million | $20.2 million | 7.1% | Legal Sports Report |
| July 2018 | $244.6 million | $4 million | 1.6% | Legal Sports Report |
| August 2018 | $247.6 million | $12.6 million | 5.1% | Legal Sports Report |
| September 2018 | $571 million | $56.3 million | 9.9% | Legal Sports Report |
| October 2018 | $528 million | $29.5 million | 5.6% | Legal Sports Report |
| November 2018 | $581 million | $27 million | 4.7% | Legal Sports Report |
| December 2018 | $544 million | $44 million | 7.9% | Legal Sports Report |
| January 2019 | $497.5 million | $14.6 million | 2.9% | Legal Sports Report |
| February 2019 | $458.6 million | $35.8 million | 7.8% | Legal Sports Report |
| March 2019 | $596.8 million | $32.5 million | 5.5% | Legal Sports Report |
| April 2019 | $328.1 million | $21.7 million | 6.6% | Legal Sports Report |
| May 2019 | $317.4 million | $11.3 million | 3.6% | Legal Sports Report |
| June 2019 | $322.1 million | $16.6 million | 5.2% | Legal Sports Report |
| July 2019 | $235 million | $10.5 million | 4.5% | Legal Sports Report |
| August 2019 | $287.8 million | $18.7 million | 6.5% | Legal Sports Report |
| September 2019 | $546.4 million | $52.1 million | 7.4% | Legal Sports Report |
| October 2019 | $543.6 million | $47.9 million | 8.8% | Legal Sports Report |
| November 2019 | $614.1 million | $31.0 million | 5.1% | Legal Sports Report |
| December 2019 | $571.2 million | $26.3 million | 4.0% | Legal Sports Report |
| January 2020 | $502.5 million | $20.2 million | 6.1% | Legal Sports Report |
Delaware
Legalized land-based wagering: Effectively May 14, 2018, the day of the SCOTUS decision that struck down PASPA.
Legalized online/mobile wagering: N/A
First wager taken: Tuesday, June 5, 2018 — Dover Downs Racetrack
Tax Rate: Revenue-sharing model
- Scientific Games (central system, terminals, risk management)- Receive 12.5 percent of revenue
- State– Receives 50 percent of revenue
- Casinos– Receive 40 percent of revenue
- Horse Racing Industry – Receives 10 percent of revenue as supplement for purses
| Month* | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| June 2018 | $7 million | $1 million | 14.3% | Legal Sports Report |
| July 2018 | $8.2 million | $527,140 | 6.4% | Legal Sports Report |
| August 2018 | $7.7 million | $706,000 | 9.2% | Legal Sports Report |
| September 2018 | $16.8 million | $3.15 million | 18.8% | Legal Sports Report |
| October 2018 | $14.7 million | $448,578 | 3.5% | |
| November 2018 | $16.3 million | $1.3 million | 8.0% | |
| December 2018 | $13.6 million | $2.2 million | 16.2% | |
| January 2019 | $12.7 million | $1.59 million | 12.5% | |
| February 2019 | $8.5 million | $236,448 | 2.8% | |
| March 2019 | $9.3 million | $1.7 million | 17.9% | |
| April 2019 | $6.5 million | $736,906 | 11.3% | |
| May 2019 | $5.5 million | $431,168 | 7.8% | |
| June 2019 | $5.4 million | $457,180 | 8.4% | |
| July 2019 | $4.4 million | $641,735 | 14.6% | |
| August 2019 | $5.6 million | $938,426 | 15.7% | |
| September 2019 | $10.2 million | $2.1 million | 20.8% | |
| October 2019 | $10.8 million | $2.1 million | 10.9% | |
| November 2019 | $8.8 million | $1.3 million | 15.2% | |
| December 2019 | $11.1 million | $1.7 million | 13.9% |
*The Delaware lottery does not do its accounting on a calendar month basis.
New Jersey
Legalized land-based wagering: Gov. Phil Murphy signed A 4111 on June 11, 2018
Legalized online/mobile wagering: Mobile betting was legalized on July 18, 2018. DraftKings Sportsbook was the first to accept a legal online bet on Aug. 3.
First legal wager taken: Thursday, June 14, 2018 — Monmouth Park Racetrack
Tax Rate:
- 8.5 percent for land-based sports betting revenue
- 13.0 percent for casino-based online sports betting revenue
- 14.25 percent for racetrack-based online sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| June 2018 | $16.4 million | $3.5 million | 21.3% | Legal Sports Report |
| July 2018 | $40.7 million | $3.8 million | 9.3% | Legal Sports Report |
| August 2018 | $95.6 million | $9.2 million | 9.6% | Legal Sports Report |
| September 2018 | $184 million | $23.9 million | 13.0% | Legal Sports Report |
| October 2018 | $260.7 million | $11.7 million | 4.5% | Legal Sports Report |
| November 2018 | $330 million | $21.2 million | 7.4% | Legal Sports Report |
| December 2018 | $319 million | $20.8 million | 6.5% | Legal Sports Report |
| January 2019 | $385 million | $18.8 million | 4.9% | Legal Sports Report |
| February 2019 | $320.4 million | $12.8 million | 4.0% | Legal Sports Report |
| March 2019 | $372.5 million | $31.7 million | 8.5% | Legal Sports Report |
| April 2019 | $313.8 million | $21.2 million | 6.8% | Legal Sports Report |
| May 2019 | $318.9 million | $15.5 million | 4.9% | Legal Sports Report |
| June 2019 | $273.2 million | $9.7 million | 3.6% | Legal Sports Report |
| July 2019 | $251.4 million | $17.9 million | 7.1% | Legal Sports Report |
| August 2019 | $293.6 million | $25.2 million | 8.6% | Legal Sports Report |
| September 2019 | $445.6 million | $37.9 million | 8.5% | Legal Sports Report |
| October 2019 | $487.9 million | $46.4 million | 9.5% | Legal Sports Report |
| November 2019 | $562.7 million | $32.9 million | 5.9% | Legal Sports Report |
| December 2019 | $557.8 million | $29.4 million | 5.3% | Legal Sports Report |
| January 2020 | $540.1 million | $53.6 million | 9.9% | Legal Sports Report |
| February 2020 | $494.8 million | $17.0 million | 3.4% | Legal Sports Report |
Mississippi
Legalized land-based wagering: March 13, 2017 — Governor Phil Bryant signs Fantasy Contests Act, which included a provision to decriminalize sports betting. Official regulations approved June 21, 2018
Legalized online/mobile wagering: Same date, although online wagering will only be allowed on casino grounds.
Tax Rate: 12.0 percent of all sports betting revenue (8.0 percent to state, 4.0 percent to local municipalities)
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| August 2018 | $6.3 million | $644,000 | 10.2% | Legal Sports Report |
| September 2018 | $31.7 million | $5.5 million | 17.3% | Legal Sports Report |
| October 2018 | $32.8 million | $1.18 million | 3.6% | |
| November 2018 | $44.5 million | $1.67 million | 3.8% | Legal Sports Report |
| December 2018 | $41.7 million | $6.1 million | 14.6% | Legal Sports Report |
| January 2019 | $35.2 million | $2.8 million | $7.9% | |
| February 2019 | $25.1 million | $2.8 million | 11.0% | |
| March 2019 | $32.4 million | $4.9 million | 15.1% | |
| April 2019 | $19.2 million | $2.1 million | 10.7% | |
| May 2019 | $17.4 million | $1.2 million | 6.8% | |
| June 2019 | $15.2 million | $1.6 million | 10.7% | |
| July 2019 | $13.4 million | $1.1 million | 7.9% | |
| August 2019 | $19.9 million | $2.9 million | 14.5% | |
| September 2019 | $37.8 million | $5.6 million | 14.9% | |
| October 2019 | $48.0 million | $12.2 million | 25.6% | |
| November 2019 | $56.4 million | $3.8 million | 6.7% | |
| December 2019 | $49.1 million | $3.5 million | 7.1% | |
| January 2020 | $45.2 million | $4.6 million | 10.3% | |
| February 2020 | $34.5 million | $2.1 million | 6.1% |
West Virginia
Legalized land-based wagering: March 9, 2018
Legalized online/mobile wagering: December 2018
License Fee: $100,000
Tax Rate: 10.0 percent of all sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| September 2018 | $7.44 million | $1.99 million | 26.8% | |
| October 2018 | $10.2 million | $594,000 | 5.8% | |
| November 2018 | $13.3 million | $1.33 million | 10% | |
| December 2018 | $42.6 million | $5.5 million | 12.9% | PlayWV |
| January 2019 | $19.7 million | $1.4 million | 7.1% | |
| February 2019 | $16.8 million | $228,285 | 1.4% | |
| March 2019 | $15.3 million | $1.8 million | 11.8% | |
| April 2019 | $11.0 million | $699,184 | 6.4% | |
| May 2019 | $9.4 million | $719,097 | 7.6% | |
| June 2019 | $7.9 million | $425,215 | 5.4% | |
| July 2019 | $6.9 million | $694,934 | 10% | |
| August 2019 | $11.6 million | $1.5 million | 13.3% | |
| September 2019 | $27.5 million | $4.1 million | 15.0% | |
| October 2019 | $32.8 million | $3.2 million | 9.7% | |
| November 2019 | $35.3 million | $1.9 million | 5.3% | |
| December 2019 | $34.2 million | $2.7 million | 7.9% | |
| January 2020 | $39.2 million | $3.1 million | 7.8% | |
| February 2020 | $40.8 million | -$419,691 | -0.1% |
Pennsylvania
Legalized land-based wagering: Oct. 30, 2017, when Governor Tom Wolf signed omnibus gaming bill
Legalized online/mobile wagering: Oct. 30, 2017 (launched May 28, 2019)
License Fee: $10 million
Tax Rate: 36.0 percent for land-based and online sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| November 2018 | $1.41 million | $508,996 | 36% | PlayPennsylvania |
| December 2018 | $16.17 million | $2.0 million | 12.4% | PlayPennsylvania |
| January 2019 | $32.0 million | $2.6 million | 8.1% | PlayPennsylvania |
| February 2019 | $31.5 million | $1.9 million | 6.2% | PlayPennsylvania |
| March 2019 | $44.5 million | $5.5 million | 12.4% | PlayPennsylvania |
| April 2019 | $36.9 million | $4.2 million | 11.5% | Legal Sports Report |
| May 2019 | $35.9 million | $2.8 million | 8.0% | PlayPennsylvania |
| June 2019 | $46.3 million | $3.1 million | 6.8% | PlayPennsylvania |
| July 2019 | $59.3 million | $5.1 million | 8.6% | Legal Sports Report |
| August 2019 | $109 million | $9.9 million | 9.1% | Legal Sports Report |
| September 2019 | $194.5 million | $19.3 million | 9.9% | Legal Sports Report |
| October 2019 | $241.2 million | $19.1 million | 7.9% | Legal Sports Report |
| November 2019 | $316.5 million | $20.1 million | 6.5% | Legal Sports Report |
| December 2019 | $342.6 million | $17.5 million | 5.1% | Legal Sports Report |
| January 2020 | $348.4 million | $31.6 million | 9.1% | Legal Sports Report |
| February 2020 | $329.8 million | $11.4 million | 3.5% | Legal Sports Report |
Rhode Island
Legalized land-based wagering: June 22, 2018 — Gov. Gina Raimondo signed into law as part of $9.6 billion budget plan
Legalized online/mobile wagering: N/A
Tax Rate: Revenue-sharing model
- State– Receives 51 percent of revenue
- Vendors– Receive 32 percent of revenue
- Casinos – Receive 17 percent of revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| November 2018 | $682,714 | $72,997 | $10.7% | Legal Sports Report |
| December 2018 | $13.1 million | $957,913 | 7.3% | |
| January 2019 | $19.0 million | $159,978 | 0.8% | |
| February 2019 | $20.7 million | -$890,623 | -4.3% | |
| March 2019 | $23.6 million | $1.5 million | 6.6% | |
| April 2019 | $16.9 million | $2.0 million | 11.7% | |
| May 2019 | $18.9 million | $899,165 | 4.8% | |
| June 2019 | $14.7 million | $2.1 million | 14.6% | |
| August 2019 | $10.0 million | $851,788 | 8.5% | |
| September 2019 | $22.2 million | $2.5 million | 11.3% | |
| October 2019 | $28.3 million | $2.5 million | 8.7% | |
| November 2019 | $31.5 million | $2.8 million | 8.7% | |
| December 2019 | $31.6 million | $2.6 million | 8.1% | |
| January 2020 | $26.9 million | $3.3 million | 12.2% |
New York
Legalized land-based wagering: Sports betting at commercial casinos became legal in 2013. The first retail sportsbooks in NY launched in July 2019.
Legalized online/mobile wagering: N/A
Tax Rate: 8.5% for land-based wagering. 12.5% for online wagering.
Arkansas
Legalized land-based wagering: November 2018 (voter referendum). Launched July 1, 2019.
Legalized online/mobile wagering: Mobile betting is only permitted on casino property as of July 1, 2019.
Tax Rate: 12.5% for retail sports betting revenue.
No revenue reports for Arkansas sports betting have been released.
Iowa
Legalized land-based and online/mobile wagering: May 2019. Launched August 2019
Tax Rate: 6.75% of revenue
Indiana
Legalized land-based wagering: Launched September 2019.
Legalized online/mobile wagering: Launched October 2019.
Tax Rate: 9.5% of revenue
Oregon
Legalized online/mobile wagering: August 2019. Launched October 2019.
Tax Rate: 2.3% of revenue.
Colorado
Legalized land-based wagering: November 2019. Launch TBD.
Legalized online/mobile wagering: November 2019. Launched May 2, 2020.
Tax Rate: 10% of revenue
States with potential in 2020
A number of states made progress during their respective 2019 legislative sessions on sports betting laws, but not enough to actually enact them. The next opportunity for those jurisdictions will come in 2020. A look at which states seem to be on track to have legalized sports betting within the next 12 months.
- Maryland
Lottery and Gambling Winnings
Winning the Lottery or scoring on a sports wager can change your life in profound ways. Congratulations on your lucky break!
Just remember that your good fortune includes a responsibility to pay taxes and fees on those winnings.
Gambling Winnings:
In 2018, Governor Phil Murphy signed a law that authorized legal sports betting in New Jersey. The law (A4111) allows people, age 21 and over, to place sports bets over the internet or in person at New Jersey's casinos, racetracks, and former racetracks. Sports betting is now among the many forms of gambling winnings that are subject to the New Jersey Gross Income Tax, including legalized gambling (sports betting, casino, racetrack, etc.) and illegal gambling.
Lottery:
New Jersey Lottery winnings from prize amounts exceeding $10,000 became subject to the Gross Income Tax in January 2009.
New Jersey Income Tax is withheld at an amount equal to three percent (3%) of the payout for both New Jersey residents and nonresidents (N.J.S.A. 54A:5.1(g)).
Withholding Rate from Lottery Winnings
The rate is determined by the amount of the payout. If a prize is taxable (i.e., over $10,000), the entire amount of the payout is subject to withholding, not just the amount in excess of $10,000. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows:
- 5% for Lottery payouts between $10,001 and $500,000;
- 8% for Lottery payouts over $500,000; and
- 8% for Lottery payouts over $10,000, if the claimant does not provide a valid Taxpayer Identification Number.
Companies that obtain the right to Lottery payments from the winner and receive Lottery payments are also subject to New Jersey withholdings. Each company is required to file for a refund of the tax withheld, if applicable.
LotteryNew Jersey Lottery winnings from prize amounts exceeding $10,000 are taxable. The individual prize amount is the determining factor of taxability, not the total amount of Lottery winnings during the year.
Nj Sports Gambling Tax Revenues
- For example, if a person won the New Jersey Lottery twice in the same year, and the winning prize amounts were $5,000 and $6,000, these winnings would not be subject to New Jersey Gross Income Tax. However, if that person won the Lottery once and received a prize of $11,000, the winnings would be taxable.
- This standard for taxability applies to both residents and nonresidents.
- The New Jersey Lottery permits donating, splitting, and assigning Lottery proceeds to someone else or to a charity. If you choose to donate, split, or assign your Lottery winnings, in whole or in part, the value is taxable to the recipient in the same way as it is for federal income tax purposes.
Nj Sports Betting Tax Revenue
Making Estimated Payments
If you will not have enough withholdings to cover your New Jersey Income Tax liability, you must make estimated payments to avoid interest and penalties. For more information on estimated payments, see GIT-8, Estimating Income Taxes.
Out-of-State Sales:
Out-of-state lottery winnings are taxable for New Jersey Gross Income Tax purposes regardless of the amount.
Slots, or limits on the planned aircraft operations, are a tool used in the United States and around the world to manage air traffic at extremely busy airports, and to prevent repeated delays that result from too many flights trying to take off or land at the same time. A ‘slot' is simply the permission of the airport operator for an airline to land a plane (and then take off – each slot is effectively a landing/take off pair). This gives not just the right to land the aircraft, but also to use all necessary airport services and infrastructure. A landing slot, takeoff slot, or airport slot is a permission granted by the owner of an airport designated as Level 3 (Coordinated Airport), which allows the grantee to schedule a landing or departure at that airport during a specific time period. Normally, the aircraft should take-off within 15 minutes of the time stated in its flight plan but, if a slot is necessary, then this window is shrunk – to within five minutes before the CTOT or within ten minutes after the CTOT. If the aircraft can't achieve this take-off time, then it has to reapply for a slot. Slot take off license plate. An airport slot, landing slot, or takeoff slot can be described as permission granted to a specific airline by the operator of the airport. This critical period guarantees the airline in question the permission to take off and land at the airport during a specified time.
Gambling winnings from a New Jersey location are taxable to nonresidents. Gambling includes the activities of sports betting and placing bets at casinos and racetracks.
Calculating Taxable Income
You may use your gambling losses to offset gambling winnings from the same year as long as they do not exceed your total winnings. If your losses were greater than your winnings, you cannot report the negative figure on your New Jersey tax return. You must claim zero income for net gambling winnings. For more information, see TB-20(R), Gambling Winnings or Losses.
A total of seven states had legal sports betting markets by the end of 2018. That number climbed to 15 in 2019. Below we take a look at the monthly sports betting handle and hold for each, along with the key facts to know in each market.
For a more in-depth breakdown of these numbers, visit LegalSportsReport.com.
Where is legal sports betting available in the U.S.?
Nevada
Legalized land-based wagering: 1949
Legalized online/mobile wagering: 2010
Tax Rate: 6.75 percent for land-based sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| January 2018 | $418.6 million | $25.1 million | 6.0% | Legal Sports Report |
| February 2018 | $411.7 million | $10.7 million | 2.6% | Legal Sports Report |
| March 2018 | $522 million | $34.2 million | 6.6% | Legal Sports Report |
| April 2018 | $316 million | $16.3 million | 5.2% | Legal Sports Report |
| May 2018 | $315.5 million | $20.5 million | 6.5% | Legal Sports Report |
| June 2018 | $286.5 million | $20.2 million | 7.1% | Legal Sports Report |
| July 2018 | $244.6 million | $4 million | 1.6% | Legal Sports Report |
| August 2018 | $247.6 million | $12.6 million | 5.1% | Legal Sports Report |
| September 2018 | $571 million | $56.3 million | 9.9% | Legal Sports Report |
| October 2018 | $528 million | $29.5 million | 5.6% | Legal Sports Report |
| November 2018 | $581 million | $27 million | 4.7% | Legal Sports Report |
| December 2018 | $544 million | $44 million | 7.9% | Legal Sports Report |
| January 2019 | $497.5 million | $14.6 million | 2.9% | Legal Sports Report |
| February 2019 | $458.6 million | $35.8 million | 7.8% | Legal Sports Report |
| March 2019 | $596.8 million | $32.5 million | 5.5% | Legal Sports Report |
| April 2019 | $328.1 million | $21.7 million | 6.6% | Legal Sports Report |
| May 2019 | $317.4 million | $11.3 million | 3.6% | Legal Sports Report |
| June 2019 | $322.1 million | $16.6 million | 5.2% | Legal Sports Report |
| July 2019 | $235 million | $10.5 million | 4.5% | Legal Sports Report |
| August 2019 | $287.8 million | $18.7 million | 6.5% | Legal Sports Report |
| September 2019 | $546.4 million | $52.1 million | 7.4% | Legal Sports Report |
| October 2019 | $543.6 million | $47.9 million | 8.8% | Legal Sports Report |
| November 2019 | $614.1 million | $31.0 million | 5.1% | Legal Sports Report |
| December 2019 | $571.2 million | $26.3 million | 4.0% | Legal Sports Report |
| January 2020 | $502.5 million | $20.2 million | 6.1% | Legal Sports Report |
Delaware
Legalized land-based wagering: Effectively May 14, 2018, the day of the SCOTUS decision that struck down PASPA.
Legalized online/mobile wagering: N/A
First wager taken: Tuesday, June 5, 2018 — Dover Downs Racetrack
Tax Rate: Revenue-sharing model
- Scientific Games (central system, terminals, risk management)- Receive 12.5 percent of revenue
- State– Receives 50 percent of revenue
- Casinos– Receive 40 percent of revenue
- Horse Racing Industry – Receives 10 percent of revenue as supplement for purses
| Month* | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| June 2018 | $7 million | $1 million | 14.3% | Legal Sports Report |
| July 2018 | $8.2 million | $527,140 | 6.4% | Legal Sports Report |
| August 2018 | $7.7 million | $706,000 | 9.2% | Legal Sports Report |
| September 2018 | $16.8 million | $3.15 million | 18.8% | Legal Sports Report |
| October 2018 | $14.7 million | $448,578 | 3.5% | |
| November 2018 | $16.3 million | $1.3 million | 8.0% | |
| December 2018 | $13.6 million | $2.2 million | 16.2% | |
| January 2019 | $12.7 million | $1.59 million | 12.5% | |
| February 2019 | $8.5 million | $236,448 | 2.8% | |
| March 2019 | $9.3 million | $1.7 million | 17.9% | |
| April 2019 | $6.5 million | $736,906 | 11.3% | |
| May 2019 | $5.5 million | $431,168 | 7.8% | |
| June 2019 | $5.4 million | $457,180 | 8.4% | |
| July 2019 | $4.4 million | $641,735 | 14.6% | |
| August 2019 | $5.6 million | $938,426 | 15.7% | |
| September 2019 | $10.2 million | $2.1 million | 20.8% | |
| October 2019 | $10.8 million | $2.1 million | 10.9% | |
| November 2019 | $8.8 million | $1.3 million | 15.2% | |
| December 2019 | $11.1 million | $1.7 million | 13.9% |
*The Delaware lottery does not do its accounting on a calendar month basis.
New Jersey
Legalized land-based wagering: Gov. Phil Murphy signed A 4111 on June 11, 2018
Legalized online/mobile wagering: Mobile betting was legalized on July 18, 2018. DraftKings Sportsbook was the first to accept a legal online bet on Aug. 3.
First legal wager taken: Thursday, June 14, 2018 — Monmouth Park Racetrack
Tax Rate:
- 8.5 percent for land-based sports betting revenue
- 13.0 percent for casino-based online sports betting revenue
- 14.25 percent for racetrack-based online sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| June 2018 | $16.4 million | $3.5 million | 21.3% | Legal Sports Report |
| July 2018 | $40.7 million | $3.8 million | 9.3% | Legal Sports Report |
| August 2018 | $95.6 million | $9.2 million | 9.6% | Legal Sports Report |
| September 2018 | $184 million | $23.9 million | 13.0% | Legal Sports Report |
| October 2018 | $260.7 million | $11.7 million | 4.5% | Legal Sports Report |
| November 2018 | $330 million | $21.2 million | 7.4% | Legal Sports Report |
| December 2018 | $319 million | $20.8 million | 6.5% | Legal Sports Report |
| January 2019 | $385 million | $18.8 million | 4.9% | Legal Sports Report |
| February 2019 | $320.4 million | $12.8 million | 4.0% | Legal Sports Report |
| March 2019 | $372.5 million | $31.7 million | 8.5% | Legal Sports Report |
| April 2019 | $313.8 million | $21.2 million | 6.8% | Legal Sports Report |
| May 2019 | $318.9 million | $15.5 million | 4.9% | Legal Sports Report |
| June 2019 | $273.2 million | $9.7 million | 3.6% | Legal Sports Report |
| July 2019 | $251.4 million | $17.9 million | 7.1% | Legal Sports Report |
| August 2019 | $293.6 million | $25.2 million | 8.6% | Legal Sports Report |
| September 2019 | $445.6 million | $37.9 million | 8.5% | Legal Sports Report |
| October 2019 | $487.9 million | $46.4 million | 9.5% | Legal Sports Report |
| November 2019 | $562.7 million | $32.9 million | 5.9% | Legal Sports Report |
| December 2019 | $557.8 million | $29.4 million | 5.3% | Legal Sports Report |
| January 2020 | $540.1 million | $53.6 million | 9.9% | Legal Sports Report |
| February 2020 | $494.8 million | $17.0 million | 3.4% | Legal Sports Report |
Mississippi
Legalized land-based wagering: March 13, 2017 — Governor Phil Bryant signs Fantasy Contests Act, which included a provision to decriminalize sports betting. Official regulations approved June 21, 2018
Legalized online/mobile wagering: Same date, although online wagering will only be allowed on casino grounds.
Tax Rate: 12.0 percent of all sports betting revenue (8.0 percent to state, 4.0 percent to local municipalities)
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| August 2018 | $6.3 million | $644,000 | 10.2% | Legal Sports Report |
| September 2018 | $31.7 million | $5.5 million | 17.3% | Legal Sports Report |
| October 2018 | $32.8 million | $1.18 million | 3.6% | |
| November 2018 | $44.5 million | $1.67 million | 3.8% | Legal Sports Report |
| December 2018 | $41.7 million | $6.1 million | 14.6% | Legal Sports Report |
| January 2019 | $35.2 million | $2.8 million | $7.9% | |
| February 2019 | $25.1 million | $2.8 million | 11.0% | |
| March 2019 | $32.4 million | $4.9 million | 15.1% | |
| April 2019 | $19.2 million | $2.1 million | 10.7% | |
| May 2019 | $17.4 million | $1.2 million | 6.8% | |
| June 2019 | $15.2 million | $1.6 million | 10.7% | |
| July 2019 | $13.4 million | $1.1 million | 7.9% | |
| August 2019 | $19.9 million | $2.9 million | 14.5% | |
| September 2019 | $37.8 million | $5.6 million | 14.9% | |
| October 2019 | $48.0 million | $12.2 million | 25.6% | |
| November 2019 | $56.4 million | $3.8 million | 6.7% | |
| December 2019 | $49.1 million | $3.5 million | 7.1% | |
| January 2020 | $45.2 million | $4.6 million | 10.3% | |
| February 2020 | $34.5 million | $2.1 million | 6.1% |
West Virginia
Legalized land-based wagering: March 9, 2018
Legalized online/mobile wagering: December 2018
License Fee: $100,000
Tax Rate: 10.0 percent of all sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| September 2018 | $7.44 million | $1.99 million | 26.8% | |
| October 2018 | $10.2 million | $594,000 | 5.8% | |
| November 2018 | $13.3 million | $1.33 million | 10% | |
| December 2018 | $42.6 million | $5.5 million | 12.9% | PlayWV |
| January 2019 | $19.7 million | $1.4 million | 7.1% | |
| February 2019 | $16.8 million | $228,285 | 1.4% | |
| March 2019 | $15.3 million | $1.8 million | 11.8% | |
| April 2019 | $11.0 million | $699,184 | 6.4% | |
| May 2019 | $9.4 million | $719,097 | 7.6% | |
| June 2019 | $7.9 million | $425,215 | 5.4% | |
| July 2019 | $6.9 million | $694,934 | 10% | |
| August 2019 | $11.6 million | $1.5 million | 13.3% | |
| September 2019 | $27.5 million | $4.1 million | 15.0% | |
| October 2019 | $32.8 million | $3.2 million | 9.7% | |
| November 2019 | $35.3 million | $1.9 million | 5.3% | |
| December 2019 | $34.2 million | $2.7 million | 7.9% | |
| January 2020 | $39.2 million | $3.1 million | 7.8% | |
| February 2020 | $40.8 million | -$419,691 | -0.1% |
Pennsylvania
Legalized land-based wagering: Oct. 30, 2017, when Governor Tom Wolf signed omnibus gaming bill
Legalized online/mobile wagering: Oct. 30, 2017 (launched May 28, 2019)
License Fee: $10 million
Tax Rate: 36.0 percent for land-based and online sports betting revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| November 2018 | $1.41 million | $508,996 | 36% | PlayPennsylvania |
| December 2018 | $16.17 million | $2.0 million | 12.4% | PlayPennsylvania |
| January 2019 | $32.0 million | $2.6 million | 8.1% | PlayPennsylvania |
| February 2019 | $31.5 million | $1.9 million | 6.2% | PlayPennsylvania |
| March 2019 | $44.5 million | $5.5 million | 12.4% | PlayPennsylvania |
| April 2019 | $36.9 million | $4.2 million | 11.5% | Legal Sports Report |
| May 2019 | $35.9 million | $2.8 million | 8.0% | PlayPennsylvania |
| June 2019 | $46.3 million | $3.1 million | 6.8% | PlayPennsylvania |
| July 2019 | $59.3 million | $5.1 million | 8.6% | Legal Sports Report |
| August 2019 | $109 million | $9.9 million | 9.1% | Legal Sports Report |
| September 2019 | $194.5 million | $19.3 million | 9.9% | Legal Sports Report |
| October 2019 | $241.2 million | $19.1 million | 7.9% | Legal Sports Report |
| November 2019 | $316.5 million | $20.1 million | 6.5% | Legal Sports Report |
| December 2019 | $342.6 million | $17.5 million | 5.1% | Legal Sports Report |
| January 2020 | $348.4 million | $31.6 million | 9.1% | Legal Sports Report |
| February 2020 | $329.8 million | $11.4 million | 3.5% | Legal Sports Report |
Rhode Island
Legalized land-based wagering: June 22, 2018 — Gov. Gina Raimondo signed into law as part of $9.6 billion budget plan
Legalized online/mobile wagering: N/A
Tax Rate: Revenue-sharing model
- State– Receives 51 percent of revenue
- Vendors– Receive 32 percent of revenue
- Casinos – Receive 17 percent of revenue
| Month | Total Handle | Total Revenue/Hold | Hold % | Story |
|---|---|---|---|---|
| November 2018 | $682,714 | $72,997 | $10.7% | Legal Sports Report |
| December 2018 | $13.1 million | $957,913 | 7.3% | |
| January 2019 | $19.0 million | $159,978 | 0.8% | |
| February 2019 | $20.7 million | -$890,623 | -4.3% | |
| March 2019 | $23.6 million | $1.5 million | 6.6% | |
| April 2019 | $16.9 million | $2.0 million | 11.7% | |
| May 2019 | $18.9 million | $899,165 | 4.8% | |
| June 2019 | $14.7 million | $2.1 million | 14.6% | |
| August 2019 | $10.0 million | $851,788 | 8.5% | |
| September 2019 | $22.2 million | $2.5 million | 11.3% | |
| October 2019 | $28.3 million | $2.5 million | 8.7% | |
| November 2019 | $31.5 million | $2.8 million | 8.7% | |
| December 2019 | $31.6 million | $2.6 million | 8.1% | |
| January 2020 | $26.9 million | $3.3 million | 12.2% |
New York
Legalized land-based wagering: Sports betting at commercial casinos became legal in 2013. The first retail sportsbooks in NY launched in July 2019.
Legalized online/mobile wagering: N/A
Tax Rate: 8.5% for land-based wagering. 12.5% for online wagering.
Arkansas
Legalized land-based wagering: November 2018 (voter referendum). Launched July 1, 2019.
Legalized online/mobile wagering: Mobile betting is only permitted on casino property as of July 1, 2019.
Tax Rate: 12.5% for retail sports betting revenue.
No revenue reports for Arkansas sports betting have been released.
Iowa
Legalized land-based and online/mobile wagering: May 2019. Launched August 2019
Tax Rate: 6.75% of revenue
Indiana
Legalized land-based wagering: Launched September 2019.
Legalized online/mobile wagering: Launched October 2019.
Tax Rate: 9.5% of revenue
Oregon
Legalized online/mobile wagering: August 2019. Launched October 2019.
Tax Rate: 2.3% of revenue.
Colorado
Legalized land-based wagering: November 2019. Launch TBD.
Legalized online/mobile wagering: November 2019. Launched May 2, 2020.
Tax Rate: 10% of revenue
States with potential in 2020
A number of states made progress during their respective 2019 legislative sessions on sports betting laws, but not enough to actually enact them. The next opportunity for those jurisdictions will come in 2020. A look at which states seem to be on track to have legalized sports betting within the next 12 months.
- Maryland
Lottery and Gambling Winnings
Winning the Lottery or scoring on a sports wager can change your life in profound ways. Congratulations on your lucky break!
Just remember that your good fortune includes a responsibility to pay taxes and fees on those winnings.
Gambling Winnings:
In 2018, Governor Phil Murphy signed a law that authorized legal sports betting in New Jersey. The law (A4111) allows people, age 21 and over, to place sports bets over the internet or in person at New Jersey's casinos, racetracks, and former racetracks. Sports betting is now among the many forms of gambling winnings that are subject to the New Jersey Gross Income Tax, including legalized gambling (sports betting, casino, racetrack, etc.) and illegal gambling.
Lottery:
New Jersey Lottery winnings from prize amounts exceeding $10,000 became subject to the Gross Income Tax in January 2009.
New Jersey Income Tax is withheld at an amount equal to three percent (3%) of the payout for both New Jersey residents and nonresidents (N.J.S.A. 54A:5.1(g)).
Withholding Rate from Lottery Winnings
The rate is determined by the amount of the payout. If a prize is taxable (i.e., over $10,000), the entire amount of the payout is subject to withholding, not just the amount in excess of $10,000. The withholding rates for gambling winnings paid by the New Jersey Lottery are as follows:
- 5% for Lottery payouts between $10,001 and $500,000;
- 8% for Lottery payouts over $500,000; and
- 8% for Lottery payouts over $10,000, if the claimant does not provide a valid Taxpayer Identification Number.
Companies that obtain the right to Lottery payments from the winner and receive Lottery payments are also subject to New Jersey withholdings. Each company is required to file for a refund of the tax withheld, if applicable.
LotteryNew Jersey Lottery winnings from prize amounts exceeding $10,000 are taxable. The individual prize amount is the determining factor of taxability, not the total amount of Lottery winnings during the year.
Nj Sports Gambling Tax Revenues
- For example, if a person won the New Jersey Lottery twice in the same year, and the winning prize amounts were $5,000 and $6,000, these winnings would not be subject to New Jersey Gross Income Tax. However, if that person won the Lottery once and received a prize of $11,000, the winnings would be taxable.
- This standard for taxability applies to both residents and nonresidents.
- The New Jersey Lottery permits donating, splitting, and assigning Lottery proceeds to someone else or to a charity. If you choose to donate, split, or assign your Lottery winnings, in whole or in part, the value is taxable to the recipient in the same way as it is for federal income tax purposes.
Nj Sports Betting Tax Revenue
Making Estimated Payments
If you will not have enough withholdings to cover your New Jersey Income Tax liability, you must make estimated payments to avoid interest and penalties. For more information on estimated payments, see GIT-8, Estimating Income Taxes.
Out-of-State Sales:
Out-of-state lottery winnings are taxable for New Jersey Gross Income Tax purposes regardless of the amount.
Slots, or limits on the planned aircraft operations, are a tool used in the United States and around the world to manage air traffic at extremely busy airports, and to prevent repeated delays that result from too many flights trying to take off or land at the same time. A ‘slot' is simply the permission of the airport operator for an airline to land a plane (and then take off – each slot is effectively a landing/take off pair). This gives not just the right to land the aircraft, but also to use all necessary airport services and infrastructure. A landing slot, takeoff slot, or airport slot is a permission granted by the owner of an airport designated as Level 3 (Coordinated Airport), which allows the grantee to schedule a landing or departure at that airport during a specific time period. Normally, the aircraft should take-off within 15 minutes of the time stated in its flight plan but, if a slot is necessary, then this window is shrunk – to within five minutes before the CTOT or within ten minutes after the CTOT. If the aircraft can't achieve this take-off time, then it has to reapply for a slot. Slot take off license plate. An airport slot, landing slot, or takeoff slot can be described as permission granted to a specific airline by the operator of the airport. This critical period guarantees the airline in question the permission to take off and land at the airport during a specified time.
Gambling winnings from a New Jersey location are taxable to nonresidents. Gambling includes the activities of sports betting and placing bets at casinos and racetracks.
Calculating Taxable Income
You may use your gambling losses to offset gambling winnings from the same year as long as they do not exceed your total winnings. If your losses were greater than your winnings, you cannot report the negative figure on your New Jersey tax return. You must claim zero income for net gambling winnings. For more information, see TB-20(R), Gambling Winnings or Losses.
You may be required to substantiate gambling losses used to offset winnings reported on your New Jersey tax return. Evidence of losses can include your losing tickets, a daily log or journal of wins and losses, canceled checks, notes, etc. You are not required to provide a detailed rider of gambling winnings and losses with your New Jersey tax return. However, if you report gambling winnings (net of losses) on your New Jersey return, you must attach a supporting statement indicating your total winnings and losses.
Reporting Taxable Winnings
Include taxable New Jersey Lottery and gambling winnings in the category of 'net gambling winnings' on your New Jersey Gross Income Tax return.
