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While New Jersey Senator John McKeon proposed a bill in March 2024 that would include a tax hike on New Jersey online casinos and sportsbooks to 30%, it won’t be part of the 2024 fiscal year budget proposal.
The proposed bill is on the back burner until the fall when the next session begins.
To put the 30% in perspective, online casinos in New Jersey are taxed at 15%, and sportsbooks are at 13%.
While this bill has been tabled, McKeon believes this will change in the near future.
“I’m disappointed that we didn’t get it done in time to be helpful this budget cycle,” McKeon said.
“But there’s no doubt with the forecast for economic times in front of us that, ultimately, we will make some changes to the online gaming tax rate in our state,” he continued.
New Jersey launched online casino play in 2013, providing a blueprint for all other states to follow.
In 2013, Senator Ray Lesniak and Assemblyman Ralph Caputo were responsible for passing legislation surrounding online casinos, and they believe taxes should’ve been higher.
“Knowing what we know now, we probably didn’t go high enough,” Caputo said.
That said, Caputo doesn’t know what the number should be.
Tax Figures in Other States
Taxes will stay where they are in 2024, but they could change next year. Nearby states Pennsylvania, Ohio, and New York have higher tax rates. Pennsylvania has a 54% tax on slots and 16% on table games. New York sports betting has a 51% tax rate. Ohio has doubled its tax rate from 10% to 20% over the last fiscal year.
Despite the tax situation, Pennsylvania has still had massive success, which could’ve encouraged New Jersey to change it. As of June 2024, the state has generated nearly $1.2 billion in revenue and is set to topple the $1.9 billion set in 2023.
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