Office of Legislative Services
State House Annex
P.O. Box 068
Trenton, New Jersey 08625
Legislative Budget and Finance Office
Phone (609) 847-3105
Fax (609) 777-2442
www.njleg.state.nj.us
LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2172
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: FEBRUARY 28, 2025
SUMMARY
Synopsis: Includes electronic sports event as sports wagering; authorizes
electronic sports wagering at certain locations.
Type of Impact: Annual State and local revenue increases; annual revenue increase for
Casino Reinvestment Development Authority.
Agencies Affected: Division of Gaming Enforcement in the Department of Law and Public
Safety; Department of the Treasury; Casino Reinvestment
Development Authority; certain local government units.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Revenue Increase Indeterminate
Authority Revenue Increase Indeterminate
Local Revenue Increase Indeterminate
The Office of Legislative Services (OLS) estimates that this bill will increase annual sports
wagering revenues to the State, to the Casino Reinvestment Development Authority, and to
certain units of local government by an indeterminate amount following the bill’s enactment.
The OLS does not have the data to know how many on-site or Internet electronic sports events
sports wagering licensees intend to offer, the number of in-person and Internet wagers that
would be placed at such events, or the total amount of revenue that would be generated from
such events.
BILL DESCRIPTION
This bill would enable the Department of Law and Public Safety’s Division of Gaming
Enforcement to permit sports wagering licensees to host electronic sports events in sports wagering
lounges or online in conjunction with Internet sports wagering operators, given certain conditions.
The division may also permit competitors to place wagers on themselves and their teams, given FE to A2172
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certain conditions. Under the bill, licensees may offer up to two websites and corresponding
mobile applications exclusively dedicated to wagering on electronic sports events. With division
approval and satisfaction of certain criteria, licensees may also act as the exclusive operators for
wagering, accepting wagers and providing payouts to competitors.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will increase annual sports wagering revenues to the State, to
the Casino Reinvestment Development Authority, and to certain units of local government by an
indeterminate amount following the bill’s enactment. The OLS does not have the data to know
how many on-site or Internet electronic sports events sports wagering licensees intend to offer, the
number of in-person and Internet wagers that would be placed at such events, or the total amount
of revenue that would be generated from such events.
Under current law, various tax rates apply to gross revenues generated by casinos and
racetracks in this State from all sports wagering, gross revenues from on-site sports wagering, and
gross revenues from online sports wagering. The Department of the Treasury distributes tax
revenues generated from casinos to the State’s Casino Revenue Fund (8.5 percent tax for in-person
sports wagering and 13 percent tax for Internet sports wagering) and to the fund for the Casino
Reinvestment Development Authority (1.25 percent tax). The Department of the Treasury
distributes tax revenues generated from racetracks to the State General Fund (8.5 percent tax for
in-person sports wagering and 13 percent tax for Internet sports wagering) and to funds for certain
units of local government that host racetrack facilities (1.25 percent tax).
For informational purposes, the OLS notes that according to the Division of Gaming
Enforcement’s December 2024 Gaming Revenue Results press release, sports wagering gross
revenue reported by casinos and racetracks totaled $1.095 billion for calendar year 2024, resulting
in tax revenues of $141.2 million to the State, $6.2 million to the Casino Reinvestment
Development Authority, and $7.5 million to certain local governments.
As noted above, the OLS does not have the information to provide an exact estimate of the
increase in sports wagering revenues that will result from the bill’s provisions. However, as
illustrated in the table below, if wagering on electronic sports events increased annualized tax
revenues by one percent, five percent, or 10 percent above current levels, the following increases
in annualized tax revenues would be realized, holding other factors constant.
FE to A2172
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Hypothetical Impact of Electronic Sports Event Wagering Using Calendar Year 2024 Tax Revenues from Sports Wagering
Entity Sports Wagering
Revenue Stream
Annualized Tax
Revenues for 2024
Hypothetical Revenue Increases
1% Increase 5% Increase 10% Increase
Casino
Reinvestment
Development
Authority
Gross Sports Wagering
Revenue from Casinos
(1.25% tax)
$6,162,271 $61,623 $308,114 $616,227
Certain Local
Governments
Gross Sports Wagering
Revenue from
Racetracks (1.25% tax)
$7,520,608 $75,206 $376,030 $752,061
Subtotal $13,682,879 $136,829 $684,144 $1,368,288
State Revenue On-Site Sports
Wagering Revenue
(8.5% tax)
$2,872,689 $28,727 $143,634 $287,269
Internet Sports
Wagering Revenue
(13% tax)
$138,345,790 $1,383,458 $6,917,290 $13,834,579
Subtotal $141,218,479 $1,412,185 $7,060,924 $14,121,848
Section: State Government
Analyst: Anna Harris
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).