ASSEMBLY SENIOR ISSUES, TOURISM AND GAMING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2213

STATE OF NEW JERSEY

DATED: SEPTEMBER 16, 1996

      The Assembly Senior Issues, Tourism and Gaming Committee reports favorably Assembly, No. 2213.

      This bill removes professional wrestling from the regulation and control of the State Athletic Control Board since the primary purpose of professional wrestling is to provide entertainment rather than a bona fide athletic contest. It distinguishes professional wrestling from wrestling, provides that the board shall not regulate or control professional wrestling or participants in professional wrestling, and stipulates that a board license shall not be required of any person in order to conduct or participate in professional wrestling.

      The bill establishes a tax on the total gross receipts from the sale of tickets to a professional wrestling event and on the face value of all tickets issued as complimentary tickets. There shall be paid to the board: 3% of the first $25,000 derived from those tickets; 4% of the next $50,000 derived from those tickets; 5% of the next $125,000 derived from those tickets; and 6% of any amount derived from those tickets exceeding $200,000. In no event shall any tax assessed under the provisions of this act exceed $100,000 for each event.

      As a result of the removal of professional wrestling from the provisions of P.L.1985, c.83 (C.5:2A-1 et seq.), which established the State Athletic Control Board and provided for the regulation of boxing, wrestling and certain other activities, the tax on television rights associated with professional wrestling is eliminated, and this bill does not reestablish such a tax.

      A promoter of professional wrestling is required to be licensed as a casino service industry if an event is held in a casino hotel. The bill also prohibits board members and employees from holding an office or position in any organization which sanctions professional wrestling.