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Gaming taxes in New Jersey hit a record $925.7 million in the 2026 fiscal year. This new record marks a 42.3% increase from the previous year. The rise stemmed mainly from higher online gambling taxes and sustained growth in New Jersey online casinos over the past year.
Additional contributions from parking, hotel revenue, and forfeited winnings pushed the state’s Casino Revenue Fund (CRF) to a fiscal-year total of $937.3 million.
Online casinos drive record revenue
Higher state tax rates were not the only factor driving this record revenue collection. The New Jersey online casino industry also experienced robust revenue growth in 2025 and 2026. Internet gaming revenue in 2025 was $2.91 billion, a 22% increase from the previous year.
This performance marked a significant increase over growth rates recorded in earlier years.
First-half revenue for 2026 reached $1.59 billion across state-licensed digital platforms. During this fiscal year, online casino revenue grew by 15% compared to the previous year.
Traditional physical casinos in Atlantic City experienced much slower revenue growth over this timeframe. Sports betting revenue grew by 7.5% in 2025, falling to 7.1% by June 2026.
Overall, digital casino platforms consistently outpaced every other gambling sector monitored by state gaming regulators.
Higher tax rates for New Jersey operators
New Jersey raised its online casino and sports betting tax rates to 19.75% on July 1, 2025, up from 15% and 13%, respectively. Tax rates for physical casinos and retail sportsbooks remained unchanged during this budget period. Land-based Atlantic City casinos continue paying 8% on their taxable gaming revenues.
Retail sportsbook operators still pay an 8.5% tax rate on earnings. Former NJ Gov. Phil Murphy originally proposed a higher 25% rate in early 2025. Final state budget negotiations resulted in the current lower tax figure.
Despite that compromise, operators face substantially higher operating costs under these new tax rates. Casinos now pay $197,500 in taxes for every million dollars in digital gaming revenue. That amount represents a clear increase from $150,000 under the previous tax system.
What the tax hike means for NJ players
The new tax rates are imposed on operators, not directly on customers. Online casinos and sportsbooks pay tax on profits after wagering. There’s no deposit or withdrawal charges to players. The change also doesn’t impact taxes consumers pay on personal winnings.
Prior to final legislative approval, BetMGM Casino and FanDuel Casino actively lobbied state lawmakers to grant exemptions. Industry representatives warned that higher taxes would force platforms to reduce customer promotional rewards.
Players can expect smaller promotional bonuses and slightly less favorable betting odds over time. Operators may adjust pricing structure gradually without adding explicit fees on player account transactions.
Where the money goes
All casino gambling taxes paid by Atlantic City casinos and their online partners in New Jersey go into the CRF. Established when voters approved casino gambling in Atlantic City, the fund supports programs for qualifying senior citizens and people with disabilities.
As originally reported by PlayNJ, the fund supports programs such as hearing aid assistance, community-based senior services, and pharmaceutical aid.
Every year, state lawmakers determine which programs receive funds.
