Lawmakers in New Jersey have agreed to an increase in the tax rate, totaling 19.75% for online gaming, which is lower than what was initially proposed.
It was earlier this year when Gov Phil Murphy suggested the state’s tax rate on sports betting should be raised to 25%. At the time, it was reported this would result in an extra $402.4 million in revenue for the state.
Now though, the lower rate has been agreed on, with online sports betting currently at 13% and internet gambling at 15%.
After the initial proposal, the Sports Betting Alliance (SBA) created a ‘say no to the tax hike’ page on its website, which prompted people to ‘stand up’ and tell their ‘state lawmakers to protect legal sports betting and iGaming in New Jersey.’
New Jersey online gaming tax raise faces opposition from industry
The SBA described the proposal as being a situation where “everyone loses – but especially customers!” The coalition continues online to state that “legal operators have invested millions into the state, created thousands of new jobs, and generated hundreds of millions each year in new tax revenue to fund important community initiatives.”
FanDuel also opposed the initial proposal, with a letter stating: “A tax hike will have a major impact on your favorite online games, putting promotional offers and the best odds at risk.”
The northeastern state isn’t the first to raise the rates, as Governor Jeff Landry in Louisiana signed a bill earlier this week suggesting the state’s online sports betting tax rises from 15% to 21.5%.
Gov Wes Moore, in Maryland, also recently signed a budget increasing the rate to 20% from 15%. Over in Illinois, a 25% flat tax will be placed on every online sports bet following a change that was introduced last year.
Other states are considering an increase too, including Ohio and Wyoming.
Featured Image: AI-generated via Ideogram
