New Jersey Increased Gambling Tax Proposal Leads to Friction

Garden State Gov. Phil Murphy wants a significant tax increase on internet gambling and online sports betting operators as part of his $58 billion state budget plan.

Ziv Chen - News Editor at Covers.com
Ziv Chen • News Editor
May 13, 2025 • 17:36 ET • 4 min read
Photo By - Imagn Images.

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

  • 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 users to offshore sites.
  • Lawmakers remain divided, with South Jersey representatives hesitant to support 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 administration'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 users, 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

The Murphy administration hasn't publicly addressed the growing pushback or commented on concerns operators raised. The administration 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. 

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Ziv Chen
News Editor

Ziv has been deep in the iGaming trenches for over 20 years, long before most people could spell "geolocation compliance." With a background in marketing and business development at some of the biggest names in gambling tech, Ziv knows the industry from the inside out. Since joining Covers, he's turned his sharp eye (and sharper keyboard) toward everything happening in the fast-moving world of online gambling. Whether it's new state launches, the latest twists in regulation, or what the big operators and game providers are cooking up next, Ziv breaks it all down with clarity, context, and just the right amount of snark. He covers the business side of betting, from affiliate trends and revenue reports to the tech powering your favorite slots. His motto in writing is “let’s make it make sense without putting you to sleep.”

When he’s not tracking gambling legislation or looking for the next breaking story, Ziv is living and dying with every pitch and play from his beloved Pittsburgh Steelers, Pirates, and Penguins. As a Pitt graduate, it’s a city loyalty forged in heartbreak, but one he wouldn’t trade for anything, except maybe a few more playoff wins.

When away from the keyboard, Ziv loves to hit the road and soak up the energy of casinos. Whether strolling the neon jungle called the Vegas Strip, or wandering into a smoky riverboat casino in the Midwest, Ziv’s in his element. He’s the guy chatting with players, blackjack dealers, and asking pit bosses way too many questions, all in the name of “research,” of course. The casino floor isn’t just his workplace, it’s a weird and wonderful ecosystem of flashing lights, wild characters, and pure sensory overload, and he wouldn’t have it any other way.

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