In the 2026 fiscal year, gaming taxes in New Jersey hit a record USD 925.7 million. This new statistic marks a 42.3% increase from the previous year. The rise stemmed mainly from higher online gambling taxes and sustained growth in New Jersey online casinos over the past year.
Additional contributions from parking, hotel revenue, and forfeited winnings pushed the state’s Casino Revenue Fund (CRF) to a fiscal year total of USD 937.3 million.
Online casinos drove record revenue
Higher state tax rates were not the only factor driving this record revenue collection. The New Jersey online casino industry also experienced robust revenue growth in 2025 and 2026. Internet gaming revenue in 2025 was USD 2.91 billion, a 22% increase from the previous year. This performance marked a significant increase over growth rates recorded in earlier years.
First-half revenue for 2026 reached USD 1.59 billion across state-licensed digital platforms. During this fiscal year, online casino revenue grew by 15% compared to the previous year. Traditional physical casinos in Atlantic City experienced much slower revenue growth over this timeframe. Sports betting revenue grew by 7.5% in 2025, falling to 7.1% by June 2026.
Overall, digital casino platforms consistently outpaced every other gambling sector monitored by state gaming regulators.
Higher tax rates for New Jersey operators
New Jersey raised its online casino and sports betting tax rates to 19.75% on July 1st, 2025, up from 15% and 13%, respectively. Tax rates for physical casinos and retail sportsbooks remained unchanged during this budget period. Land-based Atlantic City casinos continue paying 8% on their taxable gaming revenues.
Retail sportsbook operators still pay an 8.5% tax rate on earnings. Former NJ Gov. Phil Murphy originally proposed a higher 25% rate in early 2025. Final state budget negotiations resulted in the current lower tax figure.
Despite that compromise, operators face substantially higher operating costs under these new tax rates. Casinos now pay USD 197,500 in taxes for every million dollars in digital gaming revenue. That amount represents a clear increase from USD 150,000 under the previous tax system.
What the tax hike means for NJ players
The new tax rates are imposed on operators, not directly on customers. Online casinos and sportsbooks pay tax on profits after wagering. There are no deposit or withdrawal charges to players. The change also doesn’t impact on taxes consumers pay on personal winnings.
Prior to final legislative approval, BetMGM Casino and FanDuel Casino actively lobbied state lawmakers to grant exemptions. Industry representatives warned that higher taxes would force platforms to reduce customer promotional rewards.
Players can expect smaller promotional bonuses and slightly less favorable betting odds over time. Operators may adjust pricing structure gradually without adding explicit fees on player account transactions.
Where the money goes
All casino gambling taxes paid by Atlantic City casinos and their online partners in New Jersey go into the CRF. Established when voters approved casino gambling in Atlantic City, the fund supports programs for qualifying senior citizens and people with disabilities.
The fund supports programs such as hearing aid assistance, community-based senior services, and pharmaceutical aid. Every year, state lawmakers determine which programs receive funds.
More growth in gaming revenue and win in July 2026
In parallel, the New Jersey Division of Gaming Enforcement announced the July 2026 total gaming revenue results. Total Gaming Revenue for casinos, racetracks, and their partners was USD 678.1 million for July 2026, +11.9% vs USD 606.2 million reported for July 2025. Year-to-date Total Gaming Revenue was USD 4.20 billion through July 2026, +6.9% vs USD 3.92 billion reported for the prior year-to-date period. Total Gross Revenue Taxes were USD 92.2 million for July 2026 and USD 592.7 million for year-to-date through July 2026.
Casino Win for the nine casino hotels was USD 304.2 million for July 2026, an increase of 7.1% when compared to USD 284.1 million reported for July 2025. Year-to-date Casino Win was USD 1.72 billion through July 2026, reflecting an increase of 3.1% compared to the prior year-to-date period.
Internet Gaming Win for the casinos and their partners was USD 276.9 million for July 2026, reflecting an advance of 12.0% regarding USD 247.3 million reported for July 2025. Year-to-date Internet Gaming Win was USD 1.87 billion through July 2026, +14.5% vs USD 1.63 billion for the prior year-to-date period.
Sports Wagering Gross Revenue for the casinos, racetracks, and their partners was USD 97.0 million for July 2026, reflecting an increase of 29.7% when compared to USD 74.8 million reported for July 2025. Year-to-date Sports Wagering Gross Revenue was USD 609.9 million through July 2026, reflecting a decrease of 2.7% when compared to USD 626.8 million reported for the prior year-to-date period.