The bill doubles what many online gaming operators now pay
The New Jersey Senate has received a bill to increase the tax rates for online sports betting and online casino operators in New Jersey. Senator John McKeon sponsored the legislation, Bill S3064, which would increase the tax rate for online casino and sports betting operators to 30%.
This bill was initially reported in March. It is now being considered by the Senate, which has referred it to the Committee on State Government, Wagering, Tourism and Historic Preservation for further review. Sports betting operators are currently taxed at 14.25%, while iGaming operators are taxed at 15%, with an additional 2.5% paid to the Casino Reinvestment Development Authority.
Neighboring states, such as New York and Pennsylvania, have some of the highest tax rates for online gaming operators in the US, resulting in significantly more revenue than the Garden State. New York has the highest tax rate in the country at 51%, while Pennsylvania gaming sites pay a 36% tax.
Since launching in January 2022, New York has reported $1.73 billion in revenue from online sports betting taxes, while New Jersey has collected just $286.7 million in tax revenue. Had New Jersey imposed a 30% tax during that same period, the revenue collected would have been $609.7 million.
Illinois lawmakers are also pushing for a tax increase for sports betting operators. Governor JB Pritzker has proposed a change in tax rates in his executive budget for the fiscal year 2025. According to his plan, the tax rate would more than double from 15% to 35%, which he predicts would generate another $100 million in revenue in the upcoming fiscal year.
Ohio Governor Mike DeWine endorsed a tax rate increase from 10% to 20% for sports betting operators in 2023.
