NJ Tax Hike On Internet Gambling Industry Expected To Raise Big Bucks

ESSEX COUNTY, NJ — A new state law that hikes taxes on the internet gambling industry is expected to raise nearly $250 million for New Jersey, its sponsors say.

Under the previous law, online casino gaming was taxed at 15 percent in New Jersey. Meanwhile, online sports betting was taxed at 13 percent, and fantasy sports at 10.5 percent. The new formula raises the tax to 19.75 percent for each.

The New Jersey Senate and Assembly voted to approve the law on June 30. Gov. Phil Murphy announced his signature of the bill on July 1.

Supporters of the law pointed out that online sports betting is taxed at 51 percent in New York and 36 percent in Pennsylvania.

“The online gambling and sports betting industries are two of the fastest growing in our state, but these online wagering companies have not paid their fair share in taxes—companies in neighboring New York and Pennsylvania pay over double those in New Jersey,” said Sen. John McKeon (NJ-27), one of several Democratic sponsors of the bill.

“By raising these tax rates, we will be able to provide greater services to New Jersey residents and strengthen our overall financial stability,” McKeon said.

“As one of the largest betting markets in the country, it is in the public’s best interest to raise these gaming taxes to be more in line with our neighbors with comparable markets,” said Sen. Shirley Turner (NJ-15), the bill’s other primary sponsor in the Senate.

“This legislation represents a responsible and balanced compromise in the best interest of our residents and the industry,” Turner said.

According to a joint statement from McKeon and Turner, the new tax rate is expected to generate an additional $250 million in revenue for the state.

Assemblywoman Rosy Bagolie (NJ-27) – who sponsored the Assembly version of the bill – also said it will be a win for New Jersey.

“This bill ensures that the online gaming and wagering industries contribute their fair share to fund essential services, like transportation, and strengthen New Jersey’s budget,” Bagolie said.

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