New Jersey Online Casinos, Mobile Sportsbooks Push Back on Tax Increases
- 27 Feb 2025
- Gambling News
New Jersey's online casinos and mobile sportsbook operators are resisting Gov. Phil Murphy’s (D) proposal for the state to receive a larger share of their earnings.
In his fiscal year 2026 budget speech on Tuesday, Murphy suggested increasing the state tax on iGaming earnings from 15% to 25% and raising the online sports betting tax from 13% to 25%. Murphy requires additional tax income to finance his $58.1 billion budget, marking a historic peak in New Jersey's history.
Soon after Murphy disclosed his desire for increased online gaming funds for the state, Assemblywoman Rosy Bagolie (D-Essex) and Senators John McKeon (D-Essex), Shirley Turner (D-Mercer), and Joseph Vitale (D-Middlesex) introduced matching bills in their chambers to satisfy the governor.
Assembly Bill 5349 and Senate Bill 5349 would both increase the state's tax on gross gaming revenue earned through iGaming and online sports betting. Nonetheless, the law extends further with a suggested uniform tax of 30%.
Gaming Companies React
The Casino Association of New Jersey, along with the iGaming and online sportsbooks it represents, has expressed opposition to Murphy and the Democratic lawmakers' introduction of bills aimed at increasing taxes on iGaming and internet sports revenue.
Certain operators, such as FanDuel, directly contact their customers in the Garden State urging them to “Take Action” against tax initiatives.
“We need your help,” FanDuel messaged its New Jersey players. “New Jersey just announced a tax hike on online betting — both sports and iGaming. If approved, it would result in a nearly 100% tax increase! With massive, unfair hikes like this, everyone loses.”
FanDuel and BetMGM, with a comparable message, provided links to a Sports Betting Alliance website where users can enter their details and quickly send a message against New Jersey legislators.
"A 100% tax hike means fewer promos, worse odds, and a less enjoyable market for consumers like me,” the prewritten letter reads. “If legal operators can’t compete, more bettors will turn back to illegal sites that offer better deals but lack protections. This tax hike doesn’t just hurt businesses — it directly impacts me and other responsible bettors.”
The Sports Betting Alliance advocates for lawful, controlled iGaming and sports wagering throughout the US. The four participants consist of BetMGM, DraftKings, FanDuel, and Fanatics.
New Jersey’s existing tax framework for iGaming and online sports wagering is deemed appealing to operators, as the rates are more favorable compared to other legal iGaming states like Delaware, Michigan, Pennsylvania, and Rhode Island.
iGaming Surpasses Atlantic City in January 2025
The nine casinos located in Atlantic City experienced a decline in face-to-face gaming last year. Gross gaming revenue from the physical gaming floors fell by more than 1% to reach $2.81 billion.
At the same time, iGaming platforms experienced a GGR increase exceeding 24% to reach $2.38 billion. Oddsmakers gained over $1 billion from gamblers, primarily through online transactions.
The year 2025 commenced with iGaming gross gaming revenue surpassing the winnings of Atlantic City casinos. Certain analysts anticipate that iGaming operators will surpass traditional brick-and-mortar establishments by 2025, though there may be exceptions during the warmer summer months.
