Gambling giants sound alarm over New Jersey's proposed 25% tax
The proposed significant increase in taxes for online gambling operations in New Jersey has drawn flak from the industry. In February, Governor Phil Murphy proposed the tax as part of his executive budget proposal, which calls for a 25 percent tax rate on both mobile sports betting and online gaming. This would up the current tax rates of 13 percent and 15 percent on mobile sports betting and online gaming, respectively.
The suggested increases, while still well below New York’s steep 51 percent tax, mark a substantial departure from the current framework that has fueled rapid growth in New Jersey’s digital gambling sector. March 2025 was a historic month for the gaming sector in New Jersey. Data from New Jersey’s Division of Gaming Enforcement (NJDGE) revealed that total gambling revenue in March 2025 hit $546.1 million, up 3.7 percent from the same month last year. For the fourth time, iGaming led the state’s revenue, surpassing sports betting and physical casinos. iGaming revenue reached the figure of $243.9 million; a growth of 23.7 percent compared to the same month of the previous year.
FanDuel, BetMGM urge users to speak out
FanDuel and BetMGM have urged their users in New Jersey to speak out against the proposal. “A tax hike will have a major impact on your favorite online games, putting promotional offers and the best odds at risk,” FanDuel wrote in a statement as quoted by media.
The proposed tax changes have sparked bipartisan pushback in the New Jersey State Legislature. Senators John Burzichelli (D) and Mike Testa (R) released a joint statement which said, “Simply put, doubling the tax on online sports betting and iGaming is putting a New Jersey success story at significant risk.” The senators explained that the tax increase “would negatively impact jobs, industry investment,” as well as New Jersey customers. They also said it will possibly affect “future revenue growth for the state.”
58 percent of NJ’s residents support proposed tax
A recent poll conducted by Stockton University found that 58 percent of New Jersey residents support the proposed tax increase. However, the same survey revealed that 85 percent of those supporters do not gamble online, raising questions about the depth of understanding behind the public backing.
Despite the backlash, Governor Murphy’s office is standing by the proposal, citing significant fiscal benefits. The administration estimates that the higher tax rates would generate an additional $402 million in annual revenue for the state. This comes on the back of a groundbreaking year for New Jersey’s gambling industry, with the state pulling in a in 2024. That marks a 9 percent increase on the previous year, demonstrating the increased popularity of gambling activities in the state.
