By Lia Opperman | NJ.com
nj.com
(TNS)
New Jersey lawmakers are advancing a bill that would impose an additional 9 percent tax on income earned by companies and individuals that operate prediction markets, online platforms where users can speculate on the outcomes of elections, sports games, award shows and other future events.
The tax would apply to operators, not users.
It would take effect July 1, 2025, for businesses. Individuals would be taxed starting in 2026.
The proposal comes as prediction markets have drawn growing attention nationwide, particularly platforms offering contracts tied to elections and sports outcomes.
Earlier versions of the legislation included broader provisions that would have regulated the industry before lawmakers narrowed the bills to focus on the tax proposal.
The Senate Budget and Appropriations Committee on June 28 approved a substitute version of S4447, sponsored by Senate President Nicholas Scutari, D-Union, and Sen. Paul Sarlo, D-Bergen.
An identical measure, A5336, was sponsored by Assembly Speaker Craig Coughlin, D-Middlesex, along with Assembly members Linda Carter, D-Somerset; William Moen Jr., D-Camden; and Eliana Pintor Marin, D-Essex. That bill cleared the Assembly Budget Committee the same day.
The Senate and Assembly versions of the bill have both cleared committee and are now awaiting votes by the full Legislature. The measure would require approval from both chambers and Gov. Mikie Sherrill before becoming law.
Photo credit: Famartin/Wikimedia Commons
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