New Jersey Lawmaker Calls for Tax Hikes on Online Gambling and Sports Betting

New Jersey. Nearly a year ago, McKeon introduced legislation aimed at increasing the tax burden on these rapidly growing sectors, an effort that has yet to gain traction. Now, the state’s Democratic governor, Phil Murphy, has taken up a similar cause, advocating for a tax increase that McKeon s.

In his recent budget address, Governor Murphy proposed raising taxes on both online sports betting and internet gambling to 25%. Currently, online sports betting is taxed at 13%, while internet gambling faces a tax rate of 15%. This proposed increase is seen by McKeon as a necessary step to ensure that these industries contribute more to the state’s finances.

McKeon’s Continued Push for Tax Increases

McKeon’s efforts to raise taxes on the gambling sectors are not new. His bill, introduced in April of the previous year, sought to elevate the tax rate to 30%. While his proposal gained little momentum in the legislature, McKeon remains steadfast in his position. He expressed for Murphy’s proposal, acknowledging the potential for significant revenue generation from online gambling and sports betting, which have grown rapidly in the state.

“The issue of raising these tax rates has been something I have championed for over a year now, so I commend the governor for recognizing the revenue-generating potential of these rapidly growing industries for our state,” McKeon stated. He emphasized that the current tax rates are not in line with what other states impose. “Online gambling and sports betting companies have not paid their fair share in taxes,” McKeon continued. “The current rates in New Jersey are comparatively low when looking at competitors in nearby states, like Pennsylvania and New York, which have rates double and triple those of our state, respectively.”

Opposition from Atlantic City Casinos and Industry Stakeholders

Despite McKeon’s for the tax increases, the proposal has sparked fierce opposition, particularly from Atlantic City’s casinos and their political ers. The Casino Association of New Jersey has been vocal in its criticism of the governor’s plan, arguing that it would harm the state’s gambling market, which has seen significant growth in recent years. Casino representatives warn that the proposed tax hikes could undermine the stability of Atlantic City’s gaming and tourism industries and put jobs at risk.

The association’s stance was made clear during a press conference on Tuesday, where they expressed concern about the potential long-term consequences of the tax increases. A lobbyist for the casino industry indicated that they would mount a campaign to block the proposed hikes, though some lawmakers have privately speculated that the final tax increase might be less severe than what Murphy has proposed.

Impact on New Jersey’s Budget

Governor Murphy’s istration has stated that the tax hikes could generate substantial revenue to help cover the state’s $58 billion budget. According to estimates, the increase could raise approximately $402.4 million, a significant contribution to the state’s finances. While the proposed tax increase may be met with resistance from industry stakeholders, it remains a key component of Murphy’s budgetary plan for the fiscal year.

As debates continue over the proposal, it remains unclear whether the tax hikes will be fully implemented or if a compromise will be reached. For now, the conversation surrounding internet gambling and sports betting taxes in New Jersey continues to evolve, with strong opinions on both sides of the issue.

Source:

‘’New Jersey senator: Online gambling and sports betting don’t pay ‘their fair share’ of taxes’’, cdcgaming.com, March 01, 2025.