Gambling
New Jersey Gambling Tax Bill Delayed Until 2025
![New Jersey Gambling Tax Bill For Casinos and Sportsbooks Delayed Until 2025](https://www.sportscasting.com/wp-content/uploads/2024/07/New-Jersey-Gambling-Tax-Bill-Delayed-Until-2025.jpg)
New Jersey Senator John McKeon proposed a bill in March 2024 that would include a tax hike on New Jersey online casinos and sportsbooks to 30%. However, it won’t be part of the 2024 fiscal year budget proposal.
Online casinos in New Jersey are currently taxed 15%, while sportsbooks are taxed at 13%
The proposed bill has been delayed until at least the fall, when the next session begins. Online casinos in New Jersey are taxed at 15%, and sportsbooks are at 13%. An increase to 30% might entice some operators to leave the state.
According to Senate Bill 3064, taxes would be paid into the Casino Revenue Fund and an additional tax of 1.25% would be remitted by the State Treasurer to the Casino Reinvestment Development Authority for marketing and promotion of Atlantic City.
New Jersey launched online casino play in 2013, five years before the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). Taxes will stay the same in 2024, but they could change next year.
Nearby states Massachusetts, New York, Ohio, and Pennsylvania all have higher tax rates. Pennsylvania has a 54% tax on slots and 16% on table games. New York sports betting has a 51% tax rate as well.
Massachusetts nearly increased its tax rate from 20% to 51%
Massachusetts Sen. John F. Keenan (D-Norfolk/Plymouth) proposed an amendment to the Senate’s FY 2025 state budget to increase the online sports betting tax rate from 20% to 51%, a 155% increase.
Nonetheless, Keenan’s amendment was roundly rejected by his Senate colleagues. The proposed tax rate would have put the commonwealth in line with New York.
Additionally, Ohio has doubled its tax rate from 10% to 20% over the last fiscal year. Despite the higher taxes, both New York and Pennsylvania are still two of the highest-earning states in gambling revenue.
New Jersey could join the two aforementioned states next with a 30% tax increase. As of June 2024, the state has generated nearly $1.2 billion in revenue and is set to surpass the $1.9 billion set in 2023.
In March 2024, the Garden State’s sports betting handle reached $1.33 billion. It was the fourth-highest amount since sports betting was legalized. It was also a 29.6% year-over-year increase from the $1.03 billion in total bets placed in March 2023.