N.J. Admin. Code § 13:69L-1.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:69L-1.6 - Computation of taxes

(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to, cash, slot tokens, prize tokens counted at face value pursuant to 13:69D-1.41, the value of electronic credits withdrawn from patron accounts pursuant to 13:69D-1.37, checks received by a casino operator pursuant to 5:12-101, whether collected or not, gaming vouchers and coupons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.

N.J. Admin. Code § 13:69L-1.6

Amended by 50 N.J.R. 1652(a), effective 7/16/2018

Amended by 51 N.J.R. 1514(b), effective 10/7/2019

Amended by 56 N.J.R. 1182(b), effective 7/1/2024