NJ State Senator Introduces Bill to Increase Online Casino, Sports Betting Taxes to 30%

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NJ State Senator Introduces Bill to Increase Online Casino, Sports Betting Taxes to 30%

New Jersey State Senator John McKeon, a Democrat from Essex/Passaic, has introduced a new bill that would raise taxes on online gambling operators. 

With this bill, NJ online casinos and sportsbooks in New Jersey would see their tax rate increase to 30%, which is nearly double what it is now. 

Right now, the bill, S3064, doesn’t have any reasoning for why McKeon, the vice chair of the Senate Government, Wagering, Tourism & Historic Preservaton Committee, proposed this. 

As mentioned, the bill would almost double the tax. Right now, the taxes include a 15% flat rate and 2.5% extra that goes toward the Casino Reinvestment Development Authority. As for online sports betting, it’s 13% and an additional 1.25%. 

Since November 2013, the state has generated about $1.36 billion in taxes from online casinos and another $438 million since 2018 from online sportsbooks. 

If this bill were to pass, New Jersey would have tax rates similar to those of neighboring states, Pennsylvania and New York.

  • Pennsylvania Tax Rates: Online table games (16%), online slots at 54%, and 36% on sports betting. 
  • New York Tax Rates: Sports betting (51% of gross revenue). 

New York doesn’t have online casinos, though a recent bill that would introduce them had a tax rate of 30.5%. 

We’ll see what comes of this bill from McKeon, who spent 21 years with the General Assembly. He’s in his first term as a State Senator.

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Richard Janvrin

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