Sports Betting In New Jersey
Let's take a trip back to the year 2018. This was the year that across the US, states were given the power to legalize sports betting both online and in bookmakers or casinos. Huzzah! This was a boon for the economy of the states and in New Jersey sports betting skyrocketed in popularity. Recent accounts show that in December of 2020 alone, the state spent a staggering $996.3 million in bets, with the main basis of these being sports-related betting.
So, as you can see, New Jersey sports betting is popular and the state is big on football betting in particular. But, the New Jersey sports betting trend follows many states, with baseball, basketball, and college-based football not falling far behind in the popularity of bets and wagers.
Bookmakers and Sportsbooks: The importance of them when placing bets
As a result, there are many bookmakers and online casinos that can be used for bettors to have a flutter in New Jersey. Some of the most well-known of all of these bookmakers include 888 sport, Fanduel, William Hill, and Bet 365. If you are new to the world of betting and gambling, these sites are firm fan favorites due to their security when you are making deposits and withdrawing money. Not only that, but they are also very generous when it comes to welcome bonuses! They are also legally monitored, so should anything go awry when you are placing a bet, you will be protected by their overseers.
Alternatively, if you aren’t a fan of the larger names in betting, you can use a sportsbook to take part in New Jersey sports betting. All legally registered sportsbooks are registered with the New Jersey Division of Gaming Enforcement (or NIDGE). This also guarantees that the odds you are offered by the sportsbook or the games you engage in with online gambling in New Jersey are not rigged against you, but this will vary between sportsbook in New Jersey. And if you suspect foul play, you can contact the NIDGE to conduct a review.
Security and online betting
When it comes to placing bets or wagers online, it is pivotal to know that your information is safe and secure. Once again, this is the reason we mentioned websites such as William Hill and Bet 365, which use encryption software to keep your information safe and secure when you use them.
When placing a deposit with your online betting site or sportsbook, you will need to have a cursory glance over the types of payments accepted with each site. Certain credit cards are not accepted for New Jersey gambling, or in the US, so it may be worth setting up an e-wallet to make your deposits with your chosen betting site. This offers you additional security, as you can link your credit or debit card via a third party, offering you more security protections from online hacking and scammers. Good to know!
Top bookies for New Jersey
Right now there are no suggested sportsbooks for New Jersey
Betting Tax in New Jersey
One of the things that are unavoidable in life is taxes and, as is the way with gambling and placing bets, there are a few you need to know about when betting in New Jersey.
As the world has inevitably moved to the online world to do most of its bidding thanks to COVID-19, many bettors want to know more about the tax levied on virtual betting and gambling. The good news is that it is less than you think! At the time of writing in 2021, online games are taxed at 15%- New Jersey sports betting is taxed at 8.5 % if it is done in a casino and 13% if placed online. When the casinos do reopen, there is something to be said about visiting them in person!
Should you strike it lucky with either a casino win or via an online platform, you can expect your winnings to be taxed at around 3%. Casino or gambling winnings are taxable in New Jersey, irrespective of the game that they were won on, and are taxed yearly next to your annual income. If you are a bit of a dab hand when it comes to playing the slots, you will need to consider that your regular winnings may push you into the higher tax bracket for the state, so (as uncool as it seems), it is wise to keep a record of your gambling or betting winnings in preparation for the taxman!
Most Popular Bets In New Jersey
So, you want to start sports betting in New Jersey but don’t know where to start?
Which types of bets are legal in this state and how can you access them? To help you out, let's take a look at the most popular bets which are placed in the state, to give you a flavor of the area, its laws, and New Jersey betting overall.
As betting was legalized in 2012, it followed suit that New Jersey sports betting became popular when it was legalized in 2018, making it the most popular type of bet that the residents of New Jersey place. Legal both on and offline, New Jersey sports betting in the state is led by football, followed by basketball and baseball.
There are other sports-based betting that you can wager on in the state. This includes college football and basketball, along with golf, soccer, and tennis, but you may find these are not as common in many online betting platforms. If New Jersey sports betting isn’t really your thing but you are a bit of a film buff, the state offers Academy Awards and Oscar betting but once again, this is in a limited capacity.
Betting Restrictions in New Jersey
With all the betting options available in New Jersey, are there any types of gambling or betting which are not supported or legal? And why is this the case at all? Firstly, New Jersey sports betting allows certain types of betting and gambling to take place if it is the result of a voter referendum. Therefore, the people of New Jersey have voted to make all the aforementioned gambling and betting legal. Thanks, guys!
But yes, there are certain types of bets you cannot place legally in this state. For instance, at the time of writing, dog racing betting is not legalized in New Jersey.
Also, we discovered during this summary that Tribal Gaming is not legal in New Jersey either, so the stereotypical Native American casinos are not open or operating legally in this state.
We did discover a couple of grey areas; in relation to daily fantasy sports and social gaming, it seems there is no legislation anywhere in New Jersey law that specifies the legality of these sports. So, if you want to place a bet on either of these, check with your online casino or betting platform beforehand.
Are Betting Losses in New Jersey Tax Deductible?
Even the most adept of bettors make a loss here and there and, as your betting winnings count towards your annual income in New Jersey, are they also tax-deductible?
Yes, they are, but it can get a bit complicated. We will try to simplify it as much as we can so you can make sense of it. As always, if you are unsure about anything written here, seek legal advice.
You can deduct betting losses under New Jersey law, but only if you itemize on your tax return. But it doesn’t end there- while you can itemize, your gambling or betting losses cannot exceed your winnings for them to be deductible. For example, if you had $4,000 in winnings and $12,000 in losses, your deduction would be limited to the initial $4,000. That means that the additional $8,000 could not be carried across.
If you gamble or place bets regularly, it is vital to keep good records of your wins and losses to ensure you do not pay any penalties or interest to the IRS. And when it comes to paying taxes, honesty is the best policy!
FAQs About Betting In New Jersey
How do I report winnings for taxation in New Jersey?
Depending on the amount you have won, you may receive a W-2G form from the betting site, casino, or sportsbook to send along to the IRS at the end of the financial year.
While the majority of betting platforms will offer this, it is not legally mandated and according to the laws set in New Jersey, you are responsible for declaring your winnings to the IRS.
You will receive this if you have won more than $1,200 on slot machines or bingo, $1,500 or more on a keno game, more than $5,000 from poker tournaments, and $600 or more from New Jersey sports betting.
Should your winnings from any betting or casino be a non-cash prize, such as a holiday, car, or voucher, the IRS expects you to report the fair market value price for each prize you won.
If I don’t report my gambling winnings, what happens?
In short, you could end up paying more via penalties and interest via tax at the end of the year! Yikes!
When partaking in New Jersey sports betting, if you have accumulated a net win over a certain threshold (regardless of the casino or platform), you may receive a W-2G form, which you should send along with your end-of-year tax return to the IRS.
While the IRS will also receive a copy of the W-2G form when you do (regardless of whether you or your casino requests it), if your end-of-year income is lower than what they anticipated, you may be requested to pay more. And so, it is important for all people who are engaging in regular gambling or betting to keep accurate recordings of their winnings.
Similarly, it is important to keep an accurate record of losses sustained while engaging in gambling or betting.
What are the thresholds for gambling winnings and taxes?
While we could run off a set of numbers or a boring statistics table for you to look through, here we will keep this bit as simple as we can.
In New Jersey and across the US, gambling winnings over a certain amount need to be included in your tax return; that amount is $600 at the time of writing.
Whether you are an avid bettor or you struck it lucky, if you have made over this amount, you will need to declare it via a W-2G form.
If your winnings are over this $600, they will be taxed at a 24% rate. You can pay this at the time of your winning, via the casino or sportsbook withholding an amount of your prize to pay the tax or you can declare it with your end-of-year tax returns. Very simple really!
Conclusion- is it worth betting in New Jersey?
If you want to partake in New Jersey sports betting, the world is your metaphorical oyster.
With New Jersey sports betting, there are few sports that are restricted, and with the tax rates so easy to follow, it is exceedingly straightforward to pay the taxman their due. If you are a bit of a pro when it comes to choosing the most likely college football team for an upcoming season, it seems a shame to let that talent go to waste!
So stay safe and have fun!