Over $3Billion is expected to be placed on the upcoming NCAA basketball tournament and a large part of this sum will come through New Jersey – as NJ look to increase online gambling tax.
New Jersey Online Gambling Tax Set For Increase
New Jersey is attempting to tax a larger amount from wagers within the state and has recently pushed for it in the state.
In 2018, New Jersey finally legalized sports betting and this decision was made off the basis that New Jersey lawmakers would increase tax revenue.
Currently, the tax rate in New Jersey sits at 15% for online bets and 13% for online sports wagers, which has seen an increase in popularity.
State Senate John McKeon is keen on rising the tax rate to 30% and the proposal will go alongside the recent increase in sports wagering.
Online gambling has been on a drastic rise in recent years and set new records in 2023, increasing gambling revenue by 15% and sports betting revenue rose by 30% – finishing on a staggering $1bn.
State Sen. John McKeon, believes that $150m of the overall revenue would be a huge positive for those residing in New Jersey and could help a state budget that needs fresh revenue.
When compared to other states, New Jersey has one of the lowest tax rates for online gambling, ranking below all neighboring states.
If New Jersey decided to double its current rate, it would still boast a lower tax rate than both Pennsylvania and New York – who boast a slightly high revenue for sports wagers.
Despite New Jersey’s recent increase in sports betting revenue, the push for new rates is yet to be finalized in the house and may continue for months.
Mckeon has also confirmed in a recent presser that in-house bets wont be impacted when it comes to tax rate, as there is no plan to change the current rate.
Visit Instant Withdrawal Casinos for the best online gaming experience.
