Jersey Jack's Online Gambling Taxes Crank Up, But Not as Much as Murphy Had Suggested 🤔
Reducing Internet and Sports Betting Taxes: New Jersey's Decision to Lower Rates from Governor's Proposed 25% to 19.75%
Yo, New Jersey's jackin' up the taxes on online gambling and sports betting, but they ain't goin' as high as Gov. Phil Murphy's initial proposal.
In a late-night deal on Monday, lawmakers agreed to ratchet up the tax rate on both of those activities to 19.75%. The tax rate for internet gambling was previously at 15%, while online sports betting was taxed at 13%.
Some lawmakers and industry bigwigs, who wished to remain anonymous because they said they weren't allowed to discuss budget negotiations in public, confirmed the deal.
The legislature needs to pass a budget by July 1, so this deal's gotta be done sooner rather than later.
Last week, in a chat with The Press of Atlantic City, Murphy said the state was aiming for a balance between boosting revenue and fairness to the gambling industry and its clients. The new tax rate is lower than the 25% he proposed earlier in the year[2][4].
Insights
In essence, New Jersey just hiked up the tax rates on online sports betting and internet gambling to 19.75%. This change is part of the state's budget plan for fiscal year 2026, and it's expected to bring in more cash from the online gambling sector in New Jersey[2][4]. Still, the agreed 19.75% is a compromise- it's lower than the 25% rate Murphy initially put forward.
Sports-betting and internet gambling in New Jersey are now subject to a tax rate of 19.75%, as lawmakers agreed to this increase in a late-night deal, aiming to generate more revenue for the state's budget. Despite the hike, the rate is lower than the 25% initially proposed by Governor Phil Murphy.
