- A New Jersey prediction market bill would require operators to pay a 29.75% tax.
- NJ S4447 seeks to regulate prediction markets in the state and limit insider trading and market manipulation.
- The bill would also ban markets involving elections, death, and “catastrophic events” like war, natural disasters, acts of terrorism, and more examples.
TRENTON, N.J. – The New Jersey Senate Budget and Appropriations Committee will discuss a bill to regulate prediction markets in the Garden State. Senator Nicholas Scutari’s S4447 bill aims to implement prediction market regulations that would limit sports event contracts to licensed operators, ban election and disaster markets, and prevent insider trading.
The all-inclusive prediction market regulation bill looks to treat these operators similar to legal sports betting operators in the state, rather than trying to ban them like some other states have. New Jersey would require prediction market operators to implement responsible gaming measures and also apply the state’s 19.75% sportsbook tax, plus a 10% surcharge for a near 30% total taxation.
Prediction Markets In New Jersey Need A License
If prediction markets want to offer sports event contracts in New Jersey, they’ll need a sports betting license under S4447. Bill details in NJ S4447 show that prediction market operators offering sports contracts without a license are subject to fines.
“Any person who allows participants to open a speculative position on an athletic event market without approval of the division is guilty of a crime of the fourth degree and, notwithstanding the provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than $25,000 and, in the case of a person other than a natural person, to a fine of not more than $100,000…”
The bill also requires prediction market users to be 21 years or older. New Jersey’s Division of Gaming Enforcement would regulate these markets if the bill is to pass, but it currently resides in the Senate Budget and Appropriations Committee without a scheduled hearing.
