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New Jersey collected $925.7 million in gaming taxes during fiscal year 2026, up 42.3% from the previous year.
The increase came as the state’s higher online gambling tax rates took effect and online casino revenue continued to grow.
Parking and hotel fees, fines, forfeited winnings, and other sources pushed total Casino Revenue Fund collections to approximately $937.3 million.
Online casino growth also lifted collections
The tax increase was not the only factor behind the record total. Recent Division of Gaming Enforcement results show that New Jersey online casino growth also contributed.
Operators generated $2.91 billion in internet gaming revenue during 2025, up 22% from the previous year. Revenue reached another $1.59 billion during the first half of 2026, representing 15% year-over-year growth.
That growth added to the effect of the higher tax rate. By comparison, Atlantic City casino revenue increased 2.7% in 2025 and 2.3% during the first half of 2026. Sports betting revenue rose 7.5% in 2025 before falling 7.1% through June 2026.
Online gambling taxes rose to 19.75%
New Jersey raised the tax on online casino revenue from 15% to 19.75%, while online sports wagering moved from 13% to the same rate.
Taxes on gambling at physical locations did not change. Atlantic City casino revenue remains taxed at 8%, while retail sportsbooks continue to pay 8.5%.
Then-Gov. Phil Murphy initially proposed a 25% rate for both online verticals as part of the FY2026 budget. Lawmakers ultimately approved a lower figure, although it still represented a substantial increase for operators.
What higher taxes mean for NJ players
The increased rates apply to operators rather than customers. NJ online casinos and sportsbooks pay tax on the revenue they retain after settling wagers, so players don’t see a separate charge on deposits, withdrawals, or bets.
The change also has no effect on the taxes customers may owe on their gambling winnings.
For every $1 million in taxable revenue, an online casino now pays $197,500 to the state instead of $150,000. An online sportsbook’s tax bill on the same amount rose from $130,000 to $197,500.
BetMGM and FanDuel encouraged players to oppose the increase before it was approved. Operators and industry organizations warned that the added cost could lead to smaller promotions, less favorable odds, or reduced investment in their New Jersey platforms.
Any response from operators is most likely to show up through changes to bonuses, loyalty rewards, or sportsbook pricing.
Gaming taxes support state programs
Gaming taxes paid by Atlantic City casinos and their online partners are deposited into the Casino Revenue Fund.
Created after voters approved casino gambling in Atlantic City, the fund supports programs for eligible seniors and residents with disabilities. These include pharmaceutical and hearing-aid assistance, community-based senior services, and local transportation.
It also helps pay for employment support and in-home assistance for residents with disabilities. State lawmakers determine how the money is divided among those programs through the annual budget.
