Delay in Implementation of New Jersey Senator John McKeon's 30% Online Casino Legislation
Pennsylvania is poised to surpass the $1.9 billion revenue mark set in 2023, thanks to its higher tax rates on slots (54%) and table games (16%). As neighbouring New Jersey contemplates a potential tax hike on its online casinos and sportsbooks, let's take a closer look at the current tax rates and the proposed changes.
Currently, online casinos in New Jersey are taxed at 15%, while sportsbooks carry a 13% tax rate. However, a proposed bill by Senator John McKeon aims to increase these rates to 30%. This proposed bill is currently on hold until the fall, when the next session begins.
In contrast, New York sports betting carries a 51% tax rate, and Ohio has recently doubled its tax rate from 10% to 20% over the last fiscal year.
The American Gaming Association (AGA), which represents the interests of both land-based and online casinos and sports betting operators, is likely to lobby for a change in the tax rate for online casinos and sports betting providers in New Jersey if Senator John McKeon does not propose a 30% tax rate in the 2025 state budget.
Richard Janvrin, a sports writer specialising in informative reviews for sportsbooks and casinos, has collaborated with some of the most renowned names in sports. His insights suggest that the proposed tax increase may have been encouraged by Pennsylvania's continued success despite its higher tax rates. As of June 2024, Pennsylvania has generated nearly $1.2 billion in revenue.
It's important to note that the proposed tax increase on New Jersey online casinos and sportsbooks is not part of the 2024 fiscal year budget proposal. The bill is still under consideration and will be discussed further in the fall.
New Jersey launched online casino play in 2013, making it one of the early adopters in the US. If the tax rate does change, it could have significant implications for the state's online gambling industry.
In conclusion, the tax rates on online gambling in both New Jersey and Pennsylvania are under review, with potential changes on the horizon. As the situation unfolds, it will be interesting to see how these changes, if any, impact the revenue and the industry as a whole.
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