Two New Jersey politicians that represent Atlantic City have proposed that the state implement a small fee on sports wagers to help sports leagues police their games.
The fee—which would be negotiated with the leagues and not done through legislation—would be about .25 percent of wagers and be used to “protect the integrity” of games.
In a letter dated Monday to NBA commissioner Adam Silver, state Sen. Jim Whelan and Assemblyman Vincent Mazzeo made the proposal in a letter to NBA commissioner Adam Silver.
Silver was recently quoted as saying sports betting in the U.S. is inevitable and sports leagues could find ways to benefit from the practice.
“We appreciate your recent comments recognizing the expansion of sports betting in other jurisdictions as ‘inevitable,’” Whelan and Mazzeo wrote. “While we strongly support the legalization of sports betting in New Jersey and the economic benefits it will bring to Atlantic City, we are cognizant that sports leagues like the NBA need the necessary resources to protect the integrity and fairness of games.”
Whelan and Mazzeo said the fee would go to the sports leagues “for the purposes of enforcing the integrity of games and preventing any games from ‘being fixed.’”
Governor Chris Christie’s administration recently ruled that casinos and horseracing tracks in the state could legally offer sports betting as long as it is not regulated by the state.
Federal law currently only allows sports betting in four states—though Nevada has the only true sports book—and New Jersey unsuccessfully challenged that ban. During court procedures, however, the state said legal arguments showed that the state could allow betting if it was not controlled or regulated by the state.
The state had a previous law allowing sports betting at tracks and casinos. Monmouth Racetrack is seen as the first venue planning to offer live sports betting. Track officials had hoped to open betting quickly, but now say they hope to begin betting by late October.
The extension by the track—which is seen as a test case for sports betting in the state—should allow a judge time to rule on the state’s interpretation. The state has asked for a judicial clarification and a federal judge is expected to rule on the matter Oct. 6.
If approved, Whelan and Mazzeo say the fee could be used by the league’s to hire independent investigators and monitors.
“This could be a national model for sports betting,” they wrote. “When sports wagering is eventually legalized nationwide, this surcharge would generate millions of dollars a year for the leagues. Given your openness to sports betting, we hope that the NBA and other sports leagues can come to an agreement with casino and racetrack operators on the collection and distribution of this surcharge.”
