New Jersey Governor Phil Murphy has unveiled a proposal to nearly double the state's tax rates on online gambling and sports betting to 25%, up from the current 15% and 13% respectively. This initiative is part of his $58.1 billion budget plan for Fiscal Year 2026, aiming to bolster state revenues by an estimated $402.4 million.
The proposed tax hike is expected to allocate an additional $322.6 million to the Casino Revenue Fund and $80 million to the state's General Fund. Governor Murphy's administration projects that these changes will increase total gaming revenues to approximately $989.9 million, marking a 54.2% rise from the previous fiscal year.
However, the proposal has encountered bipartisan opposition. State Senators John Burzichelli (D) and Michael Testa (R) expressed concerns that the tax increase could jeopardize the success of New Jersey's gaming industry. In a joint statement, they noted, "Doubling the tax on online sports betting and iGaming is putting a New Jersey success story at significant risk."
Industry representatives have also voiced apprehension. Mark Giannantonio, president of Resorts Casino Hotel and the Casino Association of New Jersey, warned that the proposed tax increase "will threaten the stability of Atlantic City’s gaming and tourism industry, as well as the industry’s workforce."
New Jersey won’t see its new gambling tax proposal until 2025.
The governor's proposal is part of a broader trend, with states like Ohio and Maryland also considering increases in gambling tax rates to address budgetary needs. As New Jersey's legislature reviews the budget, debates are expected to intensify over the potential impact of the tax hike on the state's gaming sector and overall economy.
