A New Jersey state senator has introduced a bill that would double the tax rate for online gaming revenue, from the current 15 percent to 30 percent.
State Senator John McKeon’s bill, S 3064, would increase the tax to 30 percent on both internet casino and sports betting revenue in New Jersey, which has led U.S. markets in both categories.
McKeon serves as the vice chair of the Senate State Government, Wagering, Tourism & Historic Preservation Committee. The bill does not give any justification for the proposed tax increase, and will likely face fierce opposition in lobbying efforts from Atlantic City’s casinos.
Currently, online casino revenue in New Jersey faces a base tax rate of 15 percent, with an additional 2.5 percent directed towards the Casino Reinvestment Development Authority, resulting in an effective total rate of 17.5 percent Meanwhile, online sports betting is subjected to a 13 percent base tax rate, with an additional 1.25 percent for an effective rate of 14.25 percent.
Since the launch of online casinos in New Jersey in November 2013, the state has accumulated over $1.36 billion in taxes. Since the introduction of mobile sports betting in the summer of 2018, New Jersey has collected over $438 million in taxes, excluding the additional rates.
