New Jersey Gov. Phil Murphy proposed a significant tax increase on internet gambling and online sports betting operators as part of his $58.1 billion state budget plan.
The proposed increases nearly double current tax rates on these industries, raising the internet gaming tax from 15% to 25%, and increasing the online sports betting tax from 13% to 25%.
Key takeaways 462y2l
- New Jersey Gov. Murphy proposes raising online gambling and sports betting taxes to address budget deficit.
- The industry warns higher taxes may reduce odds and promos, driving s to offshore sites.
- Lawmakers remain divided, with South Jersey representatives hesitant to new gambling tax increases.
The plan intends to address a projected $1.2 billion budget deficit and bolster the state's Casino Revenue Fund, which finances programs for senior citizens and individuals with disabilities. According to the Murphy istration's budget projections, the proposed tax hikes could generate an additional $402 million annually for the fund.
The move, however, sparked resistance in the online gambling industry. New Jersey sports betting operators responded by reaching out directly to their customer bases, warning the increased tax burden could negatively affect the value gamblers receive. In emails to s, BetMGM cautioned the new tax rates might lead to fewer promotional offers and less favorable betting odds, which could, in turn, drive customers to offshore platforms with more competitive pricing.
Industry leaders argue the proposed increases would harm a sector that significantly contributes to the state's gaming revenues. Mark Giannantonio, CEO of Resorts Casino and president of the Casino Association of New Jersey, expressed concern in comments a trade outlet published.
He argued raising taxes would be counterproductive and could shift consumer activity away from regulated platforms to unregulated offshore alternatives.
The Casino Association of New Jersey, which represents major Atlantic City casinos, is reportedly opposed to the measure. Despite the organization's silence, internal opposition appears to be growing among casino executives.
Governor silent on new tax criticism 281c4b
The Murphy istration hasn't publicly addressed the growing pushback or commented on concerns operators raised. The istration remains focused on closing the state's budget gap, and officials haven't provided specific responses to questions about the potential consequences of the proposed tax hikes on the state's legal gambling market.
Some lawmakers, particularly those representing South Jersey districts including Atlantic City, are also cautious in their public remarks. Sen. John Burzichelli, a member of the Senate Budget and Appropriations Committee, expressed skepticism about introducing new taxes. He noted while budget negotiations are still in the early stages, there appears to be little enthusiasm among some legislators for further taxation.
The state's Department of the Treasury acknowledged the rising role of online wagering revenues in the state's fiscal landscape. A recent budget report pointed out that while traditional sports betting profits showed some softness, the increase in online casino and poker activity helped offset those declines.
Gov. Murphy and the state legislature have until the end of June to finalize the state budget. By law, a new budget must be enacted before the start of the next fiscal year on July 1.
