New Jersey Legislature Weighs Tax Rate Increases on Sports Betting and iGaming
Trenton, NJ — As New Jersey lawmakers finalize the state budget ahead of the June 30 deadline, discussions are underway regarding proposed tax rate increases for sports betting and iGaming. Governor Phil Murphy’s February budget proposal suggested elevating these rates to 25% of adjusted revenues, which would substantially boost state revenue by an estimated $402.4 million for fiscal year 2026.
However, bipartisan support for such significant increases appears unlikely, according to industry sources. Currently, New Jersey taxes iGaming at 15% and online sports betting at 13%, positioning the state as a leader in the national gaming market. Legislative conversations indicate some willingness to raise taxes, albeit not to the full 25% proposed by Murphy.
The backdrop of this fiscal debate is New Jersey’s recent primary results, where Democrat Mikie Sherrill secured the party’s nomination, adding a layer of momentum to potential tax changes. With Sherrill’s victory, two tax increase scenarios have emerged: an increase to 18% for both sectors or a revision maintaining the current sports betting rate while pushing iGaming to 20%.
Across the U.S., states are adjusting their gaming tax structures as well. Illinois has implemented new fees that could push effective tax rates for major operators between 57% and 60%, while Maryland passed a new law raising its sports betting rate to 20%. Meanwhile, Louisiana has moved to enhance its online betting tax from 15% to 21.5%.
As New Jersey lawmakers present various budget proposals in upcoming weeks, Governor Murphy has reiterated his commitment to align with legislative leadership on final decisions. The outcome will undoubtedly shape the future of gaming in the Garden State.
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