Don’t Tax Away a NJ Success Story
Today, New Jersey is the national gold standard for legal online betting — thanks to a fair tax structure that has driven private investment, created thousands of jobs, and delivered strong tax revenues for the state.
But now, a proposal to nearly double the tax rate threatens to reverse that progress.
WHAT’S AT STAKE:
- Local Jobs & Investment: SBA member companies alone employ nearly 2,000 New Jerseyans in over 70,000 square feet of office space across Jersey City, Hoboken, and Atlantic City. A steep tax hike would force the industry to reevaluate its footprint — putting jobs and future growth at risk.
- Customer Experience: Higher taxes mean fewer promos, worse odds, and limited betting options. Consumers will feel the impact directly, and many will turn back to the illegal market with no required protections, age verifications, or responsible gaming measures.
- Safeguards & State Revenue: The regulated market provides funding, oversight, and accountability. The illegal market doesn’t. Weakening the legal market strengthens the underground one at the expense of both consumer safeguards and state revenue.
New Jerseyans want good odds and fair tax rates. The current structure works — for the state, for workers, and for consumers. A 100% tax increase would jeopardize that balance.
Let’s protect what we’ve built and keep New Jersey at the top of the game.
When BetMGM opened its headquarters in Jersey City earlier this year, it marked another bold move toward establishing New Jersey as the nation’s hub for online betting—and a major economic powerhouse in the industry. Here’s what local leaders had to say:
“The introduction of sports wagering in New Jersey has proven to be an economic juggernaut for our state. Due to its demand, we have witnessed the organic growth of the industry, leading to more jobs for New Jersey residents and more tax revenue to support public services.”
“When a company like BetMGM comes here — along with a proliferation of other gaming companies — it speaks to Jersey City being a diverse place to live and work and having a diverse workforce. I think that’s really important for the city and the state.”
“Hudson County is open for business, and BetMGM’s new headquarters in the county will provide hundreds of employment opportunities to our residents.”
Illegal betting hurts consumers
Legal and regulated online betting offers a safe alternative to the illicit offshore marketplace, which continues to flourish in states that haven’t yet legalized online sports betting or online casinos.
Experts estimate customers spend tens of billions each year on the illegal sports betting market alone, depriving state and local governments of significant tax revenue. These illegal and unregulated offshore websites are unsafe products – offering no consumer protections, age verification, or responsible gaming protections. Illicit market users also routinely fall victim to scams and find themselves unable to remove funds from their accounts.
THE LATEST FROM NEW JERSEY
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 economic impact of BetMGM in Jersey City goes far beyond employees, Exchange Place or tax revenue for the city and state
Former NJ State Senator Ray Lesniak writes, "Recently legislative proposals have been made to increase taxes on online gaming. Big mistake.