Another worrying news for the gambling world in NJ! New Jersey lawmakers have approved a new 19.75% tax rate on online casinos, sports betting, and daily fantasy sports, with Governor Murphy expected to sign it.
With New Jersey’s legal gambling market already under strain, the state’s recent decision to raise taxes on licensed online gambling operators both NJ online casinos and sports betting sites from 15% to 19.75% risks distorting the competitive landscape even further.
Despite being one of the most mature regulated markets in the U.S., New Jersey still sees a significant portion of gambling activity taking place outside the law. According to Yield Sec, unlicensed operators accounted for more than 40% of the state’s estimated $6 billion in gambling revenue. (Bloomberg, April 2025)
This tax increase could signal the beginning of a broader trend. Should New Jersey attempt to match New York’s 51% tax rate, the implications would be clear: fewer licensed operators, diminished welcome offers, and a sharp reduction in promotional activity.
New Jersey’s New Tax: ‘Punishes Legal Operators, Empowers Offshore,’ NJ.bet Says
“Disappointing decision from politicians, who instead of focusing on protecting players and controlling operators — so they don’t advertise their games to self-excluded players or appear on offshore booking sites — are putting pressure on already compliant operators who are working legally and paying taxes. And employing people in the state, no less.
This greedy move will lead to lower bonuses and worse odds, which will push players toward offshore operators that offer bigger bonuses. It will also affect marketing budgets, meaning advertisers and affiliate marketers will earn less — putting jobs at risk.”
