New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 69L - TAXES › Subchapter 1 - GROSS REVENUE TAX; INTERNET GAMING GROSS REVENUE TAX; TAXES ON SPORTS WAGERING › Section 13:69L-1.6 - Computation of taxes

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The gross
				revenue tax shall be eight percent of gross revenue. The gross revenue for the
				tax year, or portion thereof, shall be the amount obtained from the following
				calculation: the total of all sums for the tax year, or portion thereof, that
				are actually received by a casino operator from its gaming operations, which
				sums include, but are not limited to, cash, slot tokens, prize tokens counted
				at face value pursuant to
				13:69D-1.41, the value of
				electronic credits withdrawn from patron accounts pursuant to
				13:69D-1.37, checks received by a
				casino operator pursuant to
				5:12-101, whether collected or not,
				gaming vouchers and coupons counted pursuant to
				13:69D-1.33 and documents
				evidencing credit and debit card chip transactions processed pursuant to
				13:69D-1.18A regardless of
				validity, less only the total of all sums paid out as winnings to
				patrons.
(b) Nothing in this
				section shall be construed to limit the authority of the Division of Taxation
				to re-determine the amount of gross revenue tax liability or to require
				adjustments or corrections to the accounts of the casino operator.
(c) For each tax year, the amount recorded on
				each document evidencing a section 100k credit or debit card transaction and
				counted pursuant to
				13:69D-1.33 shall be included in
				the totals "actually received by a casino operator from its gaming operations"
				referred to in (a)1 above, and no adjustment thereof shall be allowed in the
				event the taxpayer does not receive full and final payment of the amount
				charged to a credit card account.
(d) For purposes of calculating the tax on
				gross revenue pursuant to (a) above, a casino operator shall be entitled to a
				deduction from gross revenue for the value of eligible promotional gaming
				credits allocable to the casino operator in accordance with
				13:69L-1.11.
(e) The Internet gaming gross revenue tax
				shall be 15 percent. The Internet gaming gross revenue for the tax year, or
				portion thereof, shall be the amount obtained from the total of all sums
				received by a casino licensee from Internet gaming operations, less only the
				total of all sums actually paid out as winnings to patrons.
(f) The casino and racetrack online internet
				sports wagering gross revenue tax shall be 13 percent. The casino and racetrack
				online sports wagering gross revenue for the tax year, or portion thereof,
				shall be the amount obtained from the total of all sums received by a casino or
				racetrack licensee from online sports pool operations, less only the total of
				all sums actually paid out as winnings to patrons.
(g) The racetrack sports wagering gross
				revenue tax shall be 8.5 percent. The racetrack sports wagering gross revenue
				for the tax year, or portion thereof, shall be the amount obtained from the
				total of all sums received by a racetrack licensee from sports pool operations,
				less only the total of all sums actually paid out as winnings to
				patrons.
(h) Nothing in this
				section shall be construed to limit the authority of the Division to
				re-determine the amount of Internet gaming gross revenue tax liability or any
				sports pool-related tax liability or to require adjustments or corrections to
				the accounts of the casino operator or racetrack licensee.
(i) A casino or racetrack licensee shall
				include gross gaming revenue from tournaments in the total revenue reported on
				either its casino, internet gaming, or sports wagering tax returns, as follows:
1. For all tournaments, including, but not
				limited to, slot tournaments, blackjack tournaments, poker tournaments, and
				sports wagering tournaments, gross gaming revenue shall consist of the rake or
				entry fees that are retained by the casino licensee or authorized
				operator;
2. No deduction from
				gross revenue shall be permitted for any payouts from the tournament prize
				pool, so long as the operator is not acting as the bank or house, that is, the
				operator has no risk in the tournament's outcome and the source of all prizes
				is the entry fees from the tournament. No deduction from gross revenue shall be
				permitted for any tournament payouts in which there is no rake or entry
				fee;
3. When there are insufficient
				buy-ins to cover the full amount of a guaranteed tournament, a casino licensee
				may utilize its entry fees to offset the amount it contributes to the prize
				pool. For example, if the licensee collected $ 49,900 in buy-ins and $ 490.00
				in entry fees for a $ 50,000 guaranteed tournament, entry fees of $ 100.00 may
				be used to fund the guarantee. This would reduce the taxable tournament revenue
				to $ 390.00. However, no deduction from gross revenue shall be permitted if the
				entry fees are insufficient to cover the prize guarantee; and
4. Crossover tournaments between casino,
				internet gaming, or sports wagering shall be taxed at the rate applicable to
				where the entry fee or rake was collected.