NJ Senator Wants To Double Taxes For Internet Gambling, Casinos

ESSEX COUNTY, NJ — A senator in New Jersey says it’s time to double taxes on online casinos and sports wagering as gambling profits continue to “explode” across the state.

Sen. John McKeon (NJ-27) recently introduced a package of bills that would mean some changes for the state’s burgeoning gaming industry if they cross the finish line.

The state’s 27th Legislative District includes the towns of Livingston, Millburn, Montclair, Roseland and West Orange in Essex County, and Clifton in Passaic County.

TAX HIKE

The first proposed law, S-3064, would increase the internet casino gaming tax and the internet sports wagering tax, which is currently set at 13 percent for sports wagering and 15 percent for casino gaming.

The new tax rate would be 30 percent for both.

Can casinos and other gaming providers afford the tax hike? You can bet on it, McKeon says: New Jersey casinos generated nearly $2 billion in online gambling revenue alone in 2023 – a 15 percent increase from the previous year.

Other nearby states are taxing online gambling at much higher rates, McKeon pointed out. In New York, internet casino gaming is taxed at 30 to 37 percent, depending on a casino’s location. Online sports betting is taxed at a rate of 51 percent.

In Pennsylvania, internet casino gaming is taxed at 54 percent, and taxes on sports wagering is taxed at 36 percent.

“Revenue from online gaming is exploding, and New Jersey is currently taxing this money at a much lower rate than nearby states,” McKeon said.

“Raising the tax on online gambling revenue will put us on par with our neighbors,” he added.

According to McKeon – who serves as vice-chair on the State Government, Wagering, Tourism & Historic Preservation – part of the extra tax revenue would be dedicated to prevention, education, and treatment programs for compulsive gamblers.

FUTURE GAMBLERS

Another proposed law sponsored by McKeon, S-3062, would prohibit casinos from using non-wagering casino games to “encourage future gambling.”

According to McKeon, it has become increasingly common for casinos to conduct games on mobile apps that provide non-monetary prizes – but simulate the act of betting.

The danger? Children may get hooked on the experiencing of playing casino games and develop an early gambling habit, the senator says.

“The National Council on Problem Gambling reports that children and teens are at a higher risk for gambling addiction than adults, and those who start gambling at a young age are more likely to develop a problem,” McKeon said.

“We must protect our kids from these predatory practices and hold casinos accountable to prevent the next generation from falling victim to the devastating consequences of compulsive gambling,” he added.

GAMING ADDICTIONS

McKeon said that his third bill, S-3063, would protect people struggling with gambling addiction by permitting a civil liability against casinos and simulcast facilities guilty of “reckless indifference” or “intentional misconduct for failing to withhold gaming privileges” from participants in the New Jersey Casino Self-Exclusion Program.

That program allows people to voluntarily exclude themselves from gambling in all Atlantic City casinos and internet gaming activities in an attempt to break their gaming addictions.

“Under current law, casinos are free from repercussions even if they knowingly enable a person’s gambling addiction,” McKeon said. “This measure will help individuals who have actively sought assistance in their recovery from gambling disorder and hold our casinos to a higher ethical standard.”

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