New Jersey bill proposes doubling online gambling taxes
Proposed legislation suggests hiking the tax rate to 30 per cent.
US.- New Jersey senator John McKeon has proposed Bill S3064, which seeks to raise the tax rate for online sports betting and casino gaming to 30 per cent. The move would more than double the current tax rates of 14.25 per cent for online sports betting and 17.5 per cent on casino gaming (15 per cent plus 2.5 per cent directed to the Casino Reinvestment Development Authority).
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The senator pointed out that New Jersey’s rate is lower than that of nearby states. New York imposes a rate of 51 per cent and Pennsylvania’s operators pay 36 per cent, although New York’s allowance for promotional deductions reduces the effective tax rate to 24 per cent. Since launch in January 2022, New York has generated $1.73bn in online sports betting tax revenue from a handle of $39.2bn, while New Jersey has collected $286.7m from $26.1bn.
