New Jersey finalizes igaming and sports betting tax rate
New Jersey lawmakers have agreed to raise taxes on igaming and sports betting to 19.75%, less than the original 25% Gov. Phil Murphy proposed in February.
Legislators made a decision on June 23 after rejecting Murphy’s 25% tax rate proposal in his FY2026 budget. Talking to The Press of Atlantic City, Murphy explained that they were seeking a way to increase revenue output and create fairness in the gambling industry.
“We want to be competitive,” Murphy said. “We want to be fair to our taxpayers, and we want to be fair to those who participate in the industry.”
In New Jersey, online sports betting is taxed at 13% and igaming at 15%.
The tax hike still faces opposition from various industry stakeholders, including the Casino Association of New Jersey. The Association hasn’t made public its thoughts on the tax rise yet, but it was an outspoken opponent of Murphy’s 25% proposal.
“As evidenced in other jurisdictions, this type of tax hike will not yield such expected tax dollars to the state treasury because it will result in diminishing returns through a consumer shift away from the licensed and regulated providers,” President Mark Giannantonio said.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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