3-Minute Read
New Jersey has long been known as a **pioneering state**, pushing the envelope in various industries. From the creation of the **light bulb** by Thomas Edison to the establishment of the **first college football game**, NJ has consistently been at the forefront of innovation. In recent years, it emerged as a national leader in **legal, regulated online gambling**, setting the gold standard for licensing, consumer protections, and tax policies. However, this momentum is now in jeopardy.
The Economic Powerhouse of iGaming and Sports Betting
As reported by the New Jersey Division of Gaming Enforcement, 2024 marked a historic milestone, with total gaming revenue reaching **$6.3 billion**, of which over **55%** stemmed from online platforms. This growth isn’t merely a statistic; it’s a **lifeline** for many communities. The partnership between online casinos and Atlantic City’s brick-and-mortar establishments has been a **game-changer**, revitalizing a city that faced economic challenges.
Statistics Speak Volumes
Consider the impact:
- The **gaming industry generated** over **$570 billion** in state tax revenue, significantly benefiting New Jersey’s seniors and disabled citizens.
- Over **$600 million** was spent on or generated by local businesses throughout the state.
- **23,000+ jobs** have been created, fueling economic growth and attracting **18 million visitors** to Atlantic City annually.
A Looming Tax Increase: A Grave Concern
Unfortunately, the state’s economic prosperity is threatened by a proposed **tax increase** from Trenton. The recent **FY2026 state budget** outlined plans to nearly **double the tax rates** on both iGaming and sports betting, a move that risks jobs and complicates the financial landscape for many NJ residents.
Breaking Down the Money Matters
The proposed tax structure would jump from **13%** for sports betting and **15%** for iGaming to a staggering **25%** for both. This initiative is part of a broader **$1 billion tax hike plan**, which critics from both sides of the aisle have dubbed a **”fun tax.”** As upcoming elections loom, voters may not find this “funny” one bit.
Worried About the Future?
Our members, ranging from nascent startups to established titans, have made a commitment to New Jersey, creating jobs and generating revenue in part due to its **competitive tax structure**. Any negative changes could persuade these companies to seek more favorable conditions elsewhere.
The Hidden Costs of Higher Taxes
Raising taxes risks not only the state’s revenues but also drives patrons back to **unregulated offshore betting sites**. Here, consumers lack protections, and New Jersey suffers from lost economic benefits. Such a shift would be particularly detrimental for Atlantic City, whose survival increasingly depends on the success of both iGaming and sports betting.
A Call for Action
On behalf of nearly **3,000 New Jersey taxpayers**, we urge the governor and legislators to reconsider this tax proposal. **New Jersey has set a national benchmark** for iGaming and sports betting—**why jeopardize it** with detrimental tax policies? Expanding these burdens only hands other states the advantage, making it easier for them to lure away our business and economic viability.
In conclusion, it’s imperative for New Jersey to remain a **trailblazer** in the arena of online gambling. To ensure continued growth and prosperity, state leaders must champion policies that protect and nurture this thriving industry.
Jeff Ifrah is the co-founder and general counsel of the iDevelopment and Economic Association (iDEA), advocating for legal, regulated, and responsible online gaming.
