{"id":844074,"date":"2025-04-27T21:12:07","date_gmt":"2025-04-28T02:12:07","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/27\/gambling-tax-increases-are-all-the-rage-with-new-jersey-the-latest-to-consider-it\/"},"modified":"2025-04-27T21:12:07","modified_gmt":"2025-04-28T02:12:07","slug":"gambling-tax-increases-are-all-the-rage-with-new-jersey-the-latest-to-consider-it","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/27\/gambling-tax-increases-are-all-the-rage-with-new-jersey-the-latest-to-consider-it\/","title":{"rendered":"Gambling tax increases are all the rage, with New Jersey the latest to consider it"},"content":{"rendered":"<p><strong>New Jersey governor Phil Murphy has plans to spend $58.1 billion this year and he wants to finance some of that by raising sports betting and igaming taxes among other levies. <\/strong><\/p>\n<div id=\"post-357199\">\n<p>The proposal, which Murphy shared on Tuesday (25 February), is the latest gambling and sports betting tax increase proposed in the US in the last year. It feels somewhat ironic, in that Murphy\u2019s name is on the lawsuit that overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018. Since then, 38 states have launched some form of sports betting (Missouri is also set to launch later this year), with two of those hiking their original sports betting tax rates.<\/p>\n<p>Murphy <a href=\"https:\/\/newjerseymonitor.com\/2025\/02\/25\/governor-murphy-proposes-58-1b-budget-that-raises-fees-avoids-broad-tax-hikes\/\" target=\"_blank\" rel=\"noreferrer noopener\">proposes<\/a> hiking both the sports betting and igaming tax rates to 25%, up from 13% and 15%, respectively. <\/p>\n<p>\u201cThis tax increase would be a wrong turn for New Jersey,\u201d industry lobbyist Jeremy Kudon countered in a statement on behalf of the Sports Betting Alliance (SBA). \u201cSince New Jersey first launched regulated sports betting seven years ago, sports betting operators have created thousands of jobs and generated hundreds of millions in revenue for New Jersey. <\/p>\n<p>\u201cRaising sports betting taxes will make sports betting more expensive for customers, slow operator investments in jobs and local business partnerships and put the regulated industry at a disadvantage to unregulated and offshore operators who pay no state taxes.\u201d<\/p>\n<p>BetMGM, DraftKings, Fanatics Sportsbook and FanDuel are SBA members.<\/p>\n<h2 id=\"h-slap-across-the-face\">\u201cSlap across the face\u201d<\/h2>\n<p>The iDevelopment Economic Association (iDEA) echoed Kudon\u2019s thoughts, with co-founder Jeff Ifrah calling on New Jersey and other states to focus their energies on unregulated and illegal markets. <\/p>\n<p>\u201cIt is baffling why the governor would seek to undermine this by imposing even more taxes on an industry that is already exceeding its economic promise,\u201d Ifrah said in a <a href=\"https:\/\/ideagrowth.org\/idea-statement-new-jersey-governor-proposes-tax-increase-on-igaming-and-online-sports-betting\/\" target=\"_blank\" rel=\"noreferrer noopener\">statement<\/a>. <\/p>\n<p>\u201cAt the same time, competition is growing from unregulated alternatives, including CFTC-approved sports contracts that take bets from 18-year-olds, operate outside state laws and pay no state taxes.\u201d<\/p>\n<figure>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Mark Giannantonio, president of Resorts Casino Hotel and the Casino Association of New Jersey, said the gambling tax increase \u201cwill threaten the stability of Atlantic City\u2019s gaming and tourism industry, as well as the industry\u2019s workforce.&quot; &#8211; <br \/>Atlantic City Press<\/p>\n<p>The Proposed\u2026<\/p>\n<p>&mdash; Jim Kennedy (@ACEconPolicy) <a href=\"https:\/\/twitter.com\/ACEconPolicy\/status\/1894717878038925343?ref_src=twsrc%5Etfw\">February 26, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/p>\n<\/figure>\n<p>From an economic standpoint, gambling taxes have become political footballs. Lawmakers pitch the increases as \u201cfaceless\u201d, saying they will bring in more tax dollars but not pinch all consumers. BetMGM is headquartered in New Jersey and has made significant financial investments there, as well as in Maryland and Massachusetts. Lawmakers in those two states have also proposed sharp gambling tax hikes in the last year.<\/p>\n<p>\u201cThe irony is in a state (New Jersey) that has made economic development of the igaming industry a priority, the governor literally slapped them across the face with the proposed tax increase,\u201d B Global principal Brendan Bussmann told iGB. \u201cIt is counterintuitive to say \u2018I want to have an industry that focuses on economic development\u2019 and then saddle them with a more than 60 per cent tax increase.\u201d<\/p>\n<h2 id=\"h-taxes-already-hiked-in-illinois-ohio\">Taxes already hiked in Illinois, Ohio<\/h2>\n<p>In the last six months, gambling tax increases have been proposed in at least six other states. The most <a href=\"https:\/\/www.clarionledger.com\/story\/news\/politics\/2025\/02\/26\/ms-house-casino-tax-increase-mississippi\/80465597007\/\" target=\"_blank\" rel=\"noreferrer noopener\">recent is Mississippi<\/a>, where a legislative committee this week advanced a bill that would hike the state\u2019s land-based casino tax from 8% to 12%. That state has no digital gambling.<\/p>\n<p>And, in the last 18 months, governors in Ohio and Illinois pushed through major sports wagering tax increases. In 2023, Ohio\u2019s Mike DeWine spearheaded doubling that state\u2019s rate from 10% to 20%. <a href=\"https:\/\/igamingbusiness.com\/sports-betting\/online-sports-betting\/ohio-dewine-double-betting-tax-again\/\" target=\"_blank\" rel=\"noreferrer noopener\">The new budget<\/a> introduced by DeWine this month proposes another doubling \u2013 from 20% to 40%. <\/p>\n<figure>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Ohio Gov. DeWine wants to double sports betting taxes again in the span of two years &#8211; now to 40% &#8211; to raise $180m for pro stadiums. <\/p>\n<p>Maybe he should look to things with higher revenue &amp; radically lower tax rates: <\/p>\n<p>Beer &#8211; $0.18\/gal tax<br \/>Wine &#8211; $0.32\/gal tax<br \/>Cannabis &#8211; 10% tax <a href=\"https:\/\/t.co\/E2jUr9or2h\">pic.twitter.com\/E2jUr9or2h<\/a><\/p>\n<p>&mdash; Joe Brennan Jr (@joebrennanjr) <a href=\"https:\/\/twitter.com\/joebrennanjr\/status\/1887308140351312336?ref_src=twsrc%5Etfw\">February 6, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/p>\n<\/figure>\n<p>In Illinois last year, the <a href=\"https:\/\/igamingbusiness.com\/legal-compliance\/illinois-approves-gambling-tax-hike\/\" target=\"_blank\" rel=\"noreferrer noopener\">legislature modified and increased<\/a> Governor JB Pritzker\u2019s proposed sports betting tax hike. In July, a tiered system went into effect with the lowest-grossing sportsbooks paying a 20% tax and the highest paying 40%. Those numbers are up from 15%. <\/p>\n<p>\u201cThe problem is the industry can\u2019t be the boy who cried wolf anymore,\u201d Bussmann said. \u201cIt has to stand up and fight these tax increases and not just take them and figure it out later. We\u2019re in this mess because we have failed to properly educate stakeholders on a business model for years.\u201d<\/p>\n<h2 id=\"h-lawmakers-push-back\">Lawmakers push back<\/h2>\n<p>In other states, there are proposals to raise rates to as much as 51%. New York is currently the only open, competitive market with a tax that high. <\/p>\n<p>And while Murphy\u2019s proposal would keep the rate well below 51%, New Jersey lawmakers have already pushed back. <\/p>\n<p>\u201cSimply put, doubling the tax on online sports betting and igaming is putting a New Jersey success story at significant risk,\u201d a group of south New Jersey senators told <a href=\"https:\/\/www.politico.com\/news\/2025\/02\/25\/new-jersey-phil-murphy-budget-speech-00206026\" target=\"_blank\" rel=\"noreferrer noopener\">Politico<\/a>. <\/p>\n<p>In Ohio, DeWine has been met with <a href=\"https:\/\/igamingbusiness.com\/sports-betting\/online-sports-betting\/super-bowl-coin-flip-massachuetts\/\" target=\"_blank\" rel=\"noreferrer noopener\">similar disagreement<\/a>. In both cases, it could mean that the legislature won\u2019t get behind the increases. <\/p>\n<p>But Deutsche Bank analysts on Tuesday wrote \u201cwe strongly expect the New Jersey icasino tax increase passes, although potentially undergoes some tweaks along the way, likely resulting in a slightly lower rate.\u201d They also wrote that the online sports betting tax increase is \u201clikely\u201d to pass. <\/p>\n<h2 id=\"h-other-proposals\">Other proposals<\/h2>\n<p>Here\u2019s a look at other states that have been entertaining gambling tax increases: <\/p>\n<p><strong>Louisiana<\/strong>: Last November, a bill that failed to receive approval in Louisiana would have <a href=\"https:\/\/www.casinoreports.com\/louisiana-ohio-sports-betting-tax-measures\/\" target=\"_blank\" rel=\"noreferrer noopener\">raised the digital sports betting tax<\/a> from 15% to 51%. <\/p>\n<p><strong>Maryland<\/strong>: Lawmakers are considering another expansion of gambling. In his <a href=\"https:\/\/dbm.maryland.gov\/budget\/Documents\/operbudget\/2026\/proposed\/FY2026BudgetPresentation.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">budget address<\/a> on 15 January, Governor Wes Moore proposed doubling the sports betting tax from 15% to 30% and boosting the table games tax from 20% to 25%.<\/p>\n<p><strong>Massachusetts:<\/strong> For the second session in a row, a lawmaker has <a href=\"https:\/\/www.masslive.com\/betting\/2025\/01\/new-massachusetts-sports-betting-bill-includes-massive-tax-hike-and-ban-on-live-betting.html#:~:text=Dubbed%20%E2%80%9CAn%20Act%20Addressing%20Economic,game%20wagering)%20and%20prop%20bets.\" target=\"_blank\" rel=\"noreferrer noopener\">proposed raising<\/a> the current 20% rate to 51%. In 2024, the bill did not get out of committee. <\/p>\n<p><strong>Michigan:<\/strong> In December, Michigan lawmakers <a href=\"https:\/\/igamingbusiness.com\/gaming\/michigan-tax-hike-online-gambling\/\" target=\"_blank\" rel=\"noreferrer noopener\">proposed a 0.1% tax increase<\/a> on sports betting and 1% increase on igaming. <\/p>\n<p><strong>Pennsylvania<\/strong>: In this month\u2019s new <a href=\"https:\/\/www.pa.gov\/governor\/newsroom\/2025-press-releases\/governor-shapiro-2025-26-budget-address-as-prepared.html\" target=\"_blank\" rel=\"noreferrer noopener\">budget proposal<\/a>, Pennsylvania governor Josh Shapiro included a 52% tax on skill games, which are currently unregulated. The legal casino industry, meanwhile, is<a href=\"https:\/\/igamingbusiness.com\/casino\/pennsylvania-casinos-skill-games\/\" target=\"_blank\" rel=\"noreferrer noopener\"> suing the state<\/a> to try to force it to tax existing games at 54%, the same amount levied on casino slot machines.<\/p>\n<\/p><\/div>\n<p> Jill R. Dorson <br \/><a href=\"https:\/\/igamingbusiness.com\/sports-betting\/online-sports-betting\/new-jersey-proposed-gaming-tax-hike\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Jersey governor Phil Murphy has plans to spend $58.1 billion this year and he wants to finance some of that by raising sports betting and igaming taxes among other levies. The proposal, which Murphy shared on Tuesday (25 February), is the latest gambling and sports betting tax increase proposed in the US in the<\/p>\n","protected":false},"author":1,"featured_media":844075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31800,22650],"tags":[11082,11701],"class_list":{"0":"post-844074","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gambling","8":"category-increases","9":"tag-gambling","10":"tag-increases"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=844074"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/844075"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=844074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=844074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=844074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}