New Jersey Senate and Assembly members have passed a bill to raise tax rates for sports betting, iGaming, and daily fantasy sports. Lawmakers reportedly agreed to these increases last week, and Gov. Phil Murphy (D) is expected to sign it into law.
As anticipated, New Jersey will up its sports betting and iGaming tax rates, including a surprising rise for daily fantasy sports operators. The new rate for sports betting, iGaming, and daily fantasy sports will be 19.75%.
Unsurprisingly, the increases were expected. Sports Betting Dime reported last week that Senate and Assembly leaders had agreed to raise the rates to 19.75%, reduced from Gov. Phil Murphy’s initial proposal of 25%. The surprise element was the increase for daily fantasy sports, which currently has a 10.5% tax rate, set to rise to 19.75% pending Gov. Murphy’s signature. This represents almost a 100% increase for operators.
The Assembly approved bill A5803 with a 45-33 vote, and it passed the Senate with a 25-14 vote. Current tax rates in New Jersey are 15% for iGaming and 13% for online sports betting. The state has one of the strongest gaming markets in the U.S., and interest in raising gaming tax rates has persisted.
An industry source in New Jersey told Sports Betting Dime that while there was limited support for a 25% rate hike, there was enough interest to expect increases in one or both markets.
New Jersey is set to be the fourth state to increase its sports betting rate in 2025. Maryland Gov. Wes Moore (D) recently signed a law raising the state’s sports betting tax to 20% from 15%, despite initially proposing an increase to 32%. Lawmakers settled on 20%.
Illinois lawmakers included a last-minute plan in the fiscal budget to charge a $0.25 fee on the first 20,000,000 online sports bets each year, increasing to $0.50 for each subsequent bet. Gov. J.B. Pritzker (D) signed this into law, effective July 1, 2025.
Louisiana Gov. Jeff Landry (R) signed Rep. Neil Riser’s (R-20) bill, HB 639, raising the online sports betting tax from 15% to 21.5% and creating a new fund for D-1 universities, effective August 1.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com