Zona de Azar USA – New Jersey Mulls 30% Increase in Online Gambling Tax

USA.- April 15, 2024 www.zonadeazar.com Senate Bill 3064, which was submitted by Senator John F. McKeon (pictured), would see the annual tax on internet gaming rise for both sports betting and iGaming.
At present, online sports betting is taxed at 13% of revenue, while iGaming operations are taxed at 15% alongside an additional 2.5% Casino Redevelopment Authority charge.

Senator McKeon officially submitted the bill on Monday (8 April) after filing it last week.

The bill has been referred to the senate’s State Government, Wagering, Tourism & Historic Preservation Committee.

If successful, the law is expected to take effect from 1 January 2025.

Unlike some other states, New Jersey’s legislative session is not near close, with the current annual session set to expire in December.

This means that for the moment, the bill will not have the element of time pressure that has dogged proposed legislation in other states.

Tightening regulatory enviroment
A 30% online gambling tax would bring the Garden State in line with its neighbours, which all feature relatively high tax rates.
New York and Delaware have some of the highest revenue tax rates in the union, at 51% and 50% respectively.

Delaware operates through a monopoly model, with Rush Street Interactive holding the contract.

Pennsylvania, which like New Jersey offers regulated iGaming, has a 34% sports betting tax and 54% online slots tax. Meanwhile, online table games face a 16% rate.

The bill is just the latest tax rise for online gaming across the US.

Illinois Governor J. B. Pritzker’s March budget proposed increasing the state’s sports betting revenue tax from 15% to 35%.

However, the budget has not yet been confirmed by the Illinois General Assembly.

Last June, Ohio Governor Mike DeWine signed into law a bill doubling the state’s sports betting tax from 10% to 20%.

With no successful gaming bill passed so far this year, signs point to a tighter regulatory environment going forward.

Edited by @pererarte   www.zonadeazar.com