Plans from New Jersey Governor Phil Murphy to increase online gaming tax in the state to 25 per cent have been criticised by several industry associations who say it will be damaging and will stop much needed investment.
Online gaming tax is currently set at 15 per cent with online sports betting set at two per cent lower. The increased tax would bring in around $402.4m extra revenue for the government by 2026. Deutsche Bank analysts ‘strongly expect the New Jersey icasino tax increase to pass, although potentially undergoing some tweaks along the way, likely resulting in a slightly lower rate.’
Governor Murphy said: “Our budget proposal for the next fiscal year reflects our ongoing and unrelenting commitment to building a New Jersey that is stronger, fairer, and more prepared for the future. Over the past seven plus years, we have made historic progress in advancing this mission, but we’re not done yet. And over the next year, our absolute top priority, as it has been since day one, is delivering economic security and opportunity to every New Jerseyan.”
Casino Association of New Jersey’s President, Mark Giannantonio, said: “A tax hike in this difficult economy would threaten these benefits and negatively impact the operations, workforce and marketing of our casino hotel properties. Reductions in these benefits will also lead to reductions in consumer spending in the casino properties and other Atlantic City businesses, as well as the state and local taxes generated there. New Jersey’s standing as a national leader and pioneer in online gaming would also be greatly diminished, and would cede ground to other states in jobs, investment, and innovation.”
With Atlantic City’s casinos still punching below pre-pandemic revenue levels, he warned that the extra tax would see a fall in revenue for land-based casinos, leading to layoffs and halting investment in Atlantic City’s gaming industry.
He added: “As evidenced in other jurisdictions, this type of tax hike will not yield such expected tax dollars to the State Treasury because it will result in diminishing returns through a consumer shift away from the licensed and regulated providers and back to the unregulated and illegal, offshore online businesses from which the state derives no revenue.”
Jeremy Kudon of the Sports Betting Alliance (SBA) added: “This tax increase would be a wrong turn for New Jersey. Since New Jersey first launched regulated sports betting seven years ago, sports betting operators have created thousands of jobs and generated hundreds of millions in revenue for New Jersey.
“Raising sports betting taxes will make sports betting more expensive for customers, slow operator investments in jobs and local business partnerships and put the regulated industry at a disadvantage to unregulated and offshore operators who pay no state taxes.”
Jeff Ifrah, Co-Founder of the iDevelopment Economic Association (iDEA), said: “It is baffling why the governor would seek to undermine this by imposing even more taxes on an industry that is already exceeding its economic promise. At the same time, competition is growing from unregulated alternatives, including CFTC-approved sports contracts that take bets from 18-year-olds, operate outside state laws and pay no state taxes.”
Caption: Casino Association of New Jersey’s President, Mark Giannantonio
The post Plans to increase online betting and gaming tax criticised in New Jersey appeared first on G3 Newswire.
Plans from New Jersey Governor Phil Murphy to increase online gaming tax in the state to 25 per cent have been criticised by several industry associations who say it will be damaging and will stop much needed investment. Online gaming tax is currently set at 15 per cent with online sports betting set at two…
The post Plans to increase online betting and gaming tax criticised in New Jersey appeared first on G3 Newswire.