New Jersey Sportsbooks Urge Players to Fight Gambling Tax Increase
Governor Phil Murphy’s proposal to raise taxes on New Jersey’s online gambling industry has sparked immediate resistance from major sportsbook and casino operators.
LISTEN TO THIS ARTICLE:Companies such as BetMGM and FanDuel are rallying customers to oppose the plan and warning that the increase could negatively impact players. Under the proposal, tax rates for New Jersey online casinos and bookmakers would jump to 25%, up from 13% and 15%, respectively. The move is part of Murphy’s broader $1 billion tax hike across multiple industries, including alcohol, cannabis, and cigarettes.
BetMGM and FanDuel Mobilize Customers
Sportsbooks and online casinos aren’t staying silent. BetMGM and FanDuel have launched an aggressive PR campaign and sent out emails calling on players to contact their state representatives and voice their opposition.
In its message, BetMGM warned that the tax increase could have a major impact on players, putting promotional offers and competitive odds at risk. FanDuel echoed similar concerns, suggesting that higher taxes could lead to an inferior betting experience for customers. There have also been suggestions that customers could face a surcharge on their winnings if the taxes are raised.
New Jersey’s sports betting industry set a record in 2024, with $12.77 billion wagered, which makes it one of the most active markets in the U.S. The proposed tax hike is expected to generate an additional $402.4 million annually for the state.
In 2024, New Jersey’s total gambling revenue hit $6.3 billion, a 9% increase from the previous year. Online casinos alone contributed $2.39 billion, marking a 24% year-over-year growth.
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Several Industries and Services Target in Budget
Murphy’s $58 billion budget relies heavily on new tax revenue. In addition to online gambling, he’s proposing increased taxes on gas, tolls, public transit, and other services.
New Jersey’s online gambling tax rate would still be lower than New York’s 51% tax on online sportsbooks, which is the highest in the country. However, sportsbooks warn that a tax hike could suppress the market and make it harder for NJ operators to compete.
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