The New Jersey iGaming tax is 19.75 percent of an operator’s gross gaming revenue from online casino play. That rate has applied since 1 July 2025, when the state raised it from 15 percent. This guide sets out the current rate, the 2025 increase, and the 2.5 percent Atlantic City levy. It also covers how the tax is calculated and paid, and how the state taxes player winnings.
Key takeaways
- Regulator: New Jersey Division of Gaming Enforcement (DGE); tax collected by the Division of Taxation
- Internet gaming tax: 19.75 percent of gross gaming revenue since 1 July 2025
- Previous rate: 15 percent, in force until 30 June 2025
- Investment alternative: 2.5 percent of internet gaming gross revenue to the CRDA
- The same 19.75 percent rate now applies to online sports wagering and daily fantasy sports
- Tax base: gross revenue after player winnings, not operator profit
How the New Jersey iGaming tax works today
The New Jersey iGaming tax applies to internet gaming gross revenue, which is what operators keep after paying player winnings. The state sets a single flat rate of 19.75 percent on that figure. Because the rate is flat, every online casino operator pays the same percentage, whatever its size. The tax sits with the holder of a New Jersey iGaming licence, which in practice means an Atlantic City casino and its online partners.
| Activity | Rate to 30 Jun 2025 | Rate from 1 Jul 2025 |
|---|---|---|
| Internet casino gaming | 15% | 19.75% |
| Internet sports wagering | 13% | 19.75% |
| Investment alternative (CRDA) | 2.5% | 2.5% |
Online sports betting now sits on the same 19.75 percent rate as online casino play. Daily fantasy sports moved to 19.75 percent too, after paying a lower operating fee before. So the state aligned all three online products on one number. The Division of Gaming Enforcement publishes the collected totals each quarter. The tax is only one line in the full New Jersey iGaming licence cost.
The July 2025 tax increase from 15 percent
New Jersey raised its online gambling tax as part of the fiscal year 2026 state budget. Governor Phil Murphy first proposed a single 25 percent rate across online casino and sports betting. Lawmakers pushed back, and the two sides agreed a compromise at 19.75 percent. The Assembly passed it 46 to 33, and the Senate passed it 25 to 14.
The higher rate took effect on 1 July 2025. Before that date, internet casino gaming paid 15 percent and online sports wagering paid 13 percent. Because the change landed mid-year, the effective 2025 tax for an operator blends the old and new rates. The 2025 tax law now sets 19.75 percent in the statute, so operators should treat that as the standing rate rather than a temporary measure.
The 2.5 percent investment alternative to the CRDA
A second charge sits on top of the headline rate. Operators pay a 2.5 percent investment alternative on internet gaming gross revenue to the Casino Reinvestment Development Authority. This levy is separate from the 19.75 percent New Jersey iGaming tax. So the combined take on the win is higher than the headline figure suggests.
The investment alternative funds redevelopment in Atlantic City. It has applied to internet gaming since the market launched, and the 2025 increase did not change it. For an operator budgeting its New Jersey costs, the practical rate on online casino win is 19.75 percent plus this 2.5 percent contribution. Both come off gross revenue before any operating cost.
How the New Jersey iGaming tax is calculated and paid
The New Jersey iGaming tax base is internet gaming gross revenue, not net profit. Gross revenue is the total amount players wager minus the total they win back. Marketing, platform fees, payment costs and staff wages do not reduce the taxable figure. That means an operator can owe tax in a month when its own accounts show a loss.
Operators report and remit the tax on a monthly cycle. The Division of Gaming Enforcement collects the operating data, and the Division of Taxation administers the payment. Filing runs through the state’s online gaming tax return, and the deadlines fall early in the following month. The monthly duties behind these filings sit in our guide to the New Jersey internet gaming reporting rules.
What the 2025 increase changes for operators
An extra 4.75 points on gross revenue reaches straight into operator margin. For a brand running at scale in New Jersey, that is a direct cut on every dollar of win, before any other cost. So operators reviewed their New Jersey models as soon as the rate passed. The three areas that need attention are revenue classification, cash flow and partner contracts.
First, internal controls must classify online casino, sports and fantasy revenue correctly, because all three now share one rate but report separately. Second, cash-flow forecasts need the higher monthly remittance built in from July 2025 onward. Third, third-party operators run their sites under a deal with an Atlantic City casino, and a tax rise changes the economics of that revenue share. Many operators reopened those contracts after the increase. Our revenue reporting and audit team models these lines before an application. Our gaming licensing compliance team then runs the monthly filings once a licence is live.
How New Jersey taxes player gambling winnings
The 19.75 percent rate falls on operators, not on players. Players face a separate set of rules on the money they win. New Jersey applies its Gross Income Tax to residents’ gambling and casino winnings. It treats online winnings the same as winnings from an Atlantic City floor.
Casinos withhold New Jersey income tax on certain larger payouts, and federal withholding of 24 percent can also apply to big wins. The New Jersey Division of Taxation sets out how it taxes gambling and lottery prizes, including the thresholds that trigger withholding. Players report their winnings on their annual return, and they can offset losses only within the limits the tax rules allow.
Where the tax money goes
Most of the New Jersey iGaming tax flows to the Casino Revenue Fund. That fund pays for programmes that support senior and disabled residents across New Jersey. The 2.5 percent investment alternative goes instead to the Casino Reinvestment Development Authority for Atlantic City projects.
Internet gaming has become a large contributor to state coffers as the online market has grown. The Division of Gaming Enforcement holds the full breakdown of what each channel pays. The revenue picture behind those totals sits in our guide to New Jersey iGaming revenue figures. The tax take rises with the win, so a record market year lifts state receipts too.
What the tax does not cover
The New Jersey rate applies only to play by people physically inside the state. Geolocation checks enforce that boundary on every session, so a New Jersey licence and its tax reach no players in other states. Each US state runs its own regulator and sets its own rate, so an operator owes tax separately in every market it enters.
The tax also sits apart from the fees an operator pays to hold its licence. Permit, registration and investigation costs are a different obligation, and they do not scale with revenue the way the tax does. Operators weighing a wider US footprint often compare the Michigan iGaming market and the Pennsylvania iGaming licence alongside New Jersey. Each state taxes the win on its own terms.
Planning around the New Jersey iGaming tax
The New Jersey iGaming tax stands at 19.75 percent of gross gaming revenue, plus the 2.5 percent investment alternative, since 1 July 2025. Any operator building a New Jersey model should run it against the current rate, not the old 15 percent. Factor the monthly remittance into cash flow from day one. To pressure-test your entry against these figures, contact DD Consultus at contact@licencegaming.com or +356 99408536 for a consultation.
Frequently asked questions
What is the tax rate on online gambling in New Jersey?
New Jersey taxes internet casino gaming at 19.75 percent of gross gaming revenue. The same 19.75 percent rate applies to online sports wagering and daily fantasy sports. Operators also pay a 2.5 percent investment alternative to the Casino Reinvestment Development Authority.
Did New Jersey raise its iGaming tax in 2025?
Yes. The state raised the internet casino gaming tax from 15 percent to 19.75 percent, effective 1 July 2025. The increase came through the fiscal year 2026 budget, after a compromise from Governor Murphy’s original 25 percent proposal.
How is the New Jersey iGaming tax calculated?
The tax applies to internet gaming gross revenue, which is total wagers minus player winnings. Operating costs such as marketing, platform fees and wages do not reduce the taxable figure. The Division of Gaming Enforcement collects the data and the Division of Taxation administers the payment.
Is the online casino tax the same as the sports betting tax in New Jersey?
Since 1 July 2025 both sit at 19.75 percent of gross revenue. Before that date, internet casino gaming paid 15 percent and online sports wagering paid 13 percent. The 2025 law aligned online casino, sports and fantasy on one rate.
When do operators pay the New Jersey iGaming tax?
Operators report and remit the tax on a monthly cycle, with deadlines early in the following month. That makes it a continuous cost rather than an annual one. Cash-flow planning matters from the first month of operation.
Do players pay tax on gambling winnings in New Jersey?
Yes. New Jersey applies its Gross Income Tax to residents’ gambling and casino winnings, and casinos withhold state tax on certain larger payouts. Federal withholding of 24 percent can also apply. The New Jersey Division of Taxation sets out the thresholds and reporting rules.
Where does New Jersey’s iGaming tax money go?
Most of the state internet gaming tax flows to the Casino Revenue Fund, which supports programmes for senior and disabled residents. The 2.5 percent investment alternative goes to the Casino Reinvestment Development Authority for Atlantic City redevelopment. The state publishes the collected totals.
Does the New Jersey tax apply to players in other states?
No. The rate applies only to play by people physically located in New Jersey, and geolocation enforces that limit on every session. An operator that wants to serve other states needs a separate licence and pays tax under each state’s own rate.