Gov. Murphy’s Proposed Tax Increase Sparks Controversy in New Jersey’s Online Gambling Sector
New Jersey Governor Phil Murphy has unveiled a proposed tax increase targeting the internet gaming and online sports wagering industries as part of a $58.1 billion state budget designed to address a $1.2 billion deficit. The plan suggests raising taxes on online casinos from 15% to 25% and on online sports betting from 13% to 25%.
Industry insiders warn that such significant tax hikes could adversely affect gamblers, leading to lower odds and diminished promotional offers. BetMGM and FanDuel have already reached out to their customers, encouraging them to oppose the proposed tax increases. They argue that these hikes will directly impact the quality of online gaming experiences.
Resorts CEO Mark Giannantonio, who heads the Casino Association of New Jersey, highlighted concerns that the tax increases could push some gaming operations offshore, exacerbating existing challenges. Despite this, the administration has remained largely silent on the industry backlash.
The proposed tax changes aim to generate an additional $402 million for the state’s casino revenue fund, which predominantly supports programs for seniors and the disabled. However, local lawmakers, particularly Democrats in South Jersey, have expressed skepticism about the feasibility of the tax increases. State Senator John Burzichelli indicated that there appears to be little appetite for new taxes in the current climate.
As discussions continue, legislators have until the end of June to finalize the budget, with July 1 being the deadline for implementation. The outcome of these tax proposals will be closely watched, as it has the potential to reshape the landscape of New Jersey’s thriving online gambling industry.
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