NJ Online Tax Now 19.75% — Six Months In
The 19.75% online sports betting tax rate has been in effect since July 1, 2025. Operators have absorbed most of the increase rather than passing it to consumers.
Six months into the new 19.75% online sports betting tax (raised from 13% via Assembly Bill A5803), NJ-licensed operators have largely absorbed the increase through reduced promotional spend rather than passing it directly to consumers via worse pricing.
The CRDA surcharge of 1.25% applied to casino-partnered operators brings their effective rate to 21%. Despite the higher tax burden, operator revenue has held steady — driven by handle growth and the maturing NJ market.
NJ's 19.75% rate remains lower than New York (51%) and Pennsylvania (36%), but higher than Massachusetts (20%) and Illinois (graduated up to 40%).
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