New Jersey governor proposes online gambling tax hikes
Governor Phil Murphy has proposed hiking the state’s online wagering tax rate to 25 per cent.
US.- New Jersey governor Phil Murphy‘s Summary of Budget Recommendations for 2026 include a proposal to increase the tax rate on online gambling revenue. The budget would raise the tax rate on online sports betting and igaming to 25 per cent. New Jersey currently levies a 13 per cent tax rate on sports betting and 15 per cent on igaming.
Murphy said: “Our budget proposal for the next fiscal year reflects our ongoing — and unrelenting — commitment to building a New Jersey that is stronger, fairer, and more prepared for the future.
“Over the past seven-plus years, we have made historic progress in advancing this mission, but we’re not done yet. And over the next year, our absolute top priority — as it has been since day one — is delivering economic security and opportunity to every New Jerseyan.”
The state anticipates that the change would generate an additional $402.4m in revenue, with $322.6m to be directed to the Casino Revenue Fund and $80m to the General Fund from sports betting.
New Jersey lawmakers have a June 30 deadline to finalise the budget plan. The Casino Association of New Jersey (CANJ) has opposed the proposal, warning that it could have serious consequences for Atlantic City’s casino industry and tourism sector.
CANJ president Mark Giannantonio said: “The Casino Association of New Jersey strongly opposes the proposed tax increase for online gaming, which will threaten the stability of Atlantic City’s gaming and tourism industry, as well as the industry’s workforce.”
He argued that partnerships between online gaming operators and Atlantic City casinos have provided financial benefits, allowing reinvestment in brick-and-mortar properties and helping to attract visitors through promotional offerings such as complimentary hotel stays and gaming credits. Giannantonio warned that a higher tax rate would limit these reinvestment opportunities, weaken Atlantic City’s competitiveness and drive consumers toward unregulated offshore betting sites, which do not contribute to state revenue or provide the same consumer protections as licensed operators.
