Published on: May 12, 2026, 01:09h.
Updated on: May 12, 2026, 01:09h.
- Proposed legislation in New Jersey aims to curb incentives for specific bettors from sportsbooks
- Bettors using responsible gaming tools could lose eligibility for sportsbook promotions
Recent legislation in New Jersey could prohibit online sportsbooks from offering incentives to customers engaged with responsible gaming tools.
New Jersey stands as one of the premier sports betting markets in the United States, with sportsbooks in the state recording over $12.23 billion in bets last year, retaining $1.17 billion from those wagers.
Assembly Bill 4003, introduced in February by Assemblymembers Dan Hutchison (D-Atlantic), Cody Miller (D-Atlantic), and Michael Venezia (D-Essex), seeks to restrict online sportsbooks from marketing to patrons utilizing active responsible gaming protocols. These protocols may include self-exclusion measures, time or wager limits, and deposit restrictions.
Sportsbooks found in violation of AB4003’s guidelines could incur fines starting at $500 per infraction. Responsible gaming protocols may be implemented through the sportsbook or state-run programs.
Legislation Passes Initial Review
The majority of New Jersey’s sports betting operations function online, with physical sportsbooks located within nine casinos in Atlantic City and at Monmouth Park and Meadowlands racetracks. Online platforms accounted for nearly 96% of wagering activity in 2025.
In New Jersey, online sportsbooks may deduct promotional activities from their taxable sports wagering revenue, but only for credits exceeding $12 million per year. This regulation ensures that sports bettors, rather than sportsbooks, directly benefit from promotional offerings. Sportsbooks aiming to utilize this deduction must first distribute $12 million to their customers.
However, AB4003 would limit the number of sports bettors qualified for promotional offers. Recently, the bill passed unanimously with a 5-0 vote during the Assembly Tourism, Gaming, and the Arts Committee meeting.
The proposed measure is now awaiting a full vote in the Assembly. The 2026 legislative session in New Jersey is scheduled to continue until December.
In 2025, New Jersey last modified its sports betting framework following a request from then-Governor Phil Murphy (D), who supported an increase in the state’s take on online sports betting revenue from 13% to 19.75%.
Gaming analyst Barry Jonas from Truist Securities noted that operators would absorb the increased tax burden.
“We were anticipating an operator-friendly compromise and think a rate around 20% is manageable. We believe that improvement can be achieved through reductions in promotional offerings alone, with potential mitigations reaching 50% in 2026, and possibly more thereafter,” Jonas stated.
Understanding Promotional Wagering Terms
Promotional credits offered by sportsbooks aim to enhance user engagement on their platforms.
These promotional bets are frequently structured as “winnings-only” wagers, where the bettor only receives the net win without a return of the original stake. Additionally, credits accrued from these promotional bets cannot typically be withdrawn in cash immediately but must be wagered multiple times or under specific conditions first.
Moreover, promotional credits and bonus bets may come with expiration timelines.
Promotional betting is a vital aspect of a sportsbook’s operations, serving as crucial marketing strategies for customer acquisition, retention, and fostering bettor loyalty.