Online gaming and sports activities betting has been key drivers of on line casino gaming income over the previous couple of years. However, some states need a larger reduce of the revenue.
Lawmakers in New Jersey, Maryland, Ohio and Mississippi are attempting to boost taxes on sure sectors of their state’s gaming trade.
New Jersey Gov. Phil Murphy just lately launched a brand new finances for the 2026 fiscal yr, which features a report $58.1 billion in expenditures. As a consequence, the finances virtually doubled the tax fee on the Garden State’s on-line on line casino and sports activities betting industries.
Murphy desires to bump the speed from from 13% to 25%. Legislators have till June 30 to approve the finances.
Murphy sought to keep away from revenue and gross sales tax will increase whereas additionally introducing taxes on many different actions. Murphy included go-cart racing, laser tag, bowling, inside design providers, horse coaching and automobile trade-ins within the tax improve, however there are numerous others as effectively.
Online gaming tax will increase are part of that package deal as effectively, however the plan general may even see some pushback within the state home and senate.
“The process is just beginning,” State Sen. John Burzichelli advised NJ.com. “There’s not an appetite in my mind — I can’t speak for everyone — for new taxes. There’s just enough stress around everything that new taxes are hard to sell to anybody.”
Other States Get In On the Tax-Raising Act
Some different states are additionally contemplating elevating taxes on on-line gaming and sports activities betting. In Maryland, Gov. Wes Moore’s new finances features a increase to the state’s on-line sports activities betting tax fee.
Moore desires to double the tax fee from 15% to 30% within the hopes of serving to to shore up a $3 billion finances shortfall. Traditional on line casino gaming would even be affected, with the tax on desk recreation income rising from 20% to 25%.
Mississippi lawmakers wish to increase taxes on the on line casino trade. The need comes after on-line sports activities betting laws did not cross the senate.
The House Ways and Means Committee handed a tax improve on the state’s on line casino trade from 12% to 16%. Legislators consider the rise would increase as a lot as $50 million a yr for state coffers.
Lastly, Ohio Gov. Mike DeWine desires to double the tax fee on the Buckeye State’s sports activities betting trade.
His plan would improve the operators’ tax fee from 20% of gross receipts to 40%. Moreover, his proposal comes after the state already raised the speed from 10% to twenty% in 2023.
The new improve is a part of DeWine’s proposed $218 billion finances for 2026 and 2027, which might additionally improve taxes on tobacco and marijuana.
“These sports gaming [groups] are extremely aggressive… they’re in your face all the time,” DeWine advised the Ohio Capital Journal. “They’re getting Ohioans to lose massive amounts of money every year and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.”
