A4002 —

2021, c.450 (A4002 2R) §1CHAPTER C.5:12A-16.1450   P.L.An Act concerning promotional gaming credits for sports wagering and supplementing P.L.2018, c.33 (C.5:12A-10 et seq.).

2021, CHAPTER 450, approved January 18, 2022 Assembly, No.

4002 (Second Reprint)     An Act concerning promotional gaming credits for sports wagering and supplementing P.L.2018, c.33 (C.5:12A-10 et seq.).

       C.5:12A-16.1  1. Deduction a.  A casino or racetrack that holds a sports wagering license shall receive an annual deduction from the gross revenue 2fromfrom non-Internet sports wagering2wagering; taxed pursuant to section 7 of P.L.2018, c.33 (C.5:12A-16) in an amount equal to the promotional gaming credits2[, whether or not such amounts include a play-through requirement or other restriction,]2 actually wagered by patrons, that are reported by that licensee in its annual tax return.

     procedure b.to ensure against loss to Casino Revenue Fund.

2[(1)       A1. casino or racetrack that holds a sports wagering license shall be allowed the deduction, pursuant to subsection a.

of a. this section, from gross revenues from Internet sports wagering for a tax year for the total value of promotional gaming credits actually wagered by patrons for that tax year in excess of $12,000,000.

For A thecasino firstor taxracetrack yearthat inholds whicha thissports actwagering takeslicense effect,shall thereceive divisionan shallannual reducededuction from the $12,000,000gross deductionrevenue thresholdfrom fornon-Internet thatsports taxwagering yeartaxed pursuant to section 7 of P.L.2018, c.33 (C.5:12A-16) in proportionan amount equal to the partpromotional ofgaming thecredits taxactually yearwagered by patrons, that hasare elapsedreported priorby tothat thelicensee effectivein dateits ofannual thistax act.return.

      (2)]2 b.   A casino or racetrack that holds a sports wagering license shall be allowed the deduction, pursuant to subsection a.

For For the first tax year in which this act takes effect, the division shall reduce the $8,000,000 deduction threshold for that tax year in proportion to the part of the tax year that has elapsed prior to the effective date of this act.

      c. c. (1)  The division shall establish, by regulation, procedures to ensure that the promotional gaming credit deduction established pursuant to this section does not result in a negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate under section 7 of P.L.2018, c.33 (C.5:12A-16).

If (1) necessary, The the division mayshall reduceestablish, theby valueregulation, ofprocedures the available deduction to eliminateensure anythat negative fiscal impact to the Casinopromotional Revenuegaming Fund,credit ordeduction theestablished Generalpursuant Fund as appropriate, attributable solely to thethis deductionsection anddoes not toresult otherin economic or other factors that cause a negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate.appropriate under section 7 of P.L.2018, c.33 (C.5:12A-16).

 If necessary, the division may reduce the value of the available deduction to eliminate any negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate, attributable solely to the deduction and not to other economic or other factors that cause a negative fiscal impact to the Casino Revenue Fund, or the General Fund as appropriate.

      1d. d.   No deduction shall be allowed pursuant to this section for any promotional gaming credits included in the calculation of any other deduction for promotional gaming credits, including, but not limited to, the deduction allowed pursuant to section 2 of P.L.2008, c.12 (C.5:12-144.2).1(C.5:12-144.2).       2e.  As used in this section, ‘promotional gaming credit’ means a sports wagering credit or other item approved by the division that is issued by a casino or racetrack that holds a sports wagering license to a patron for the purpose of enabling the placement of a wager in a sports pool in the licensee’s casino or racetrack.  No such credit shall be reported as a promotional gaming credit unless the licensee can establish that the credit was issued by the licensee and received from a patron as a wager in a sports pool in the licensee’s casino or racetrack.2        2.    This act shall take effect immediately.

        e.                                   As  used     in Allowsthis deductionsection, “promotional gaming credit” means a sports wagering credit or other item approved by the division that is issued by a casino or racetrack that holds a sports wagering license to a patron for the purpose of enabling the placement of a wager in a sports pool in the licensee’s casino or racetrack.  No such credit shall be reported as a promotional gaming credit unless the licensee can establish that the credit was issued by the licensee and received from grossa revenuepatron onas a wager in a sports wagering.pool in the licensee’s casino or racetrack.

       2.    This act shall take effect immediately.

       Approved January 18, 2022.