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