The house always wins, especially when the state is the house.
In 2025, New Jersey betting laws are getting a major shakeup. Lawmakers are cracking down on sweepstakes casinos and pushing a steep tax hike on iGaming and online sportsbooks. It’s a move that could redefine how—and where—people in the Garden State place their bets.
In March alone, total iGaming revenue climbed 23.7% year‑over‑year, reaching $243.9 million, according to the New Jersey Division of Gaming Enforcement. Meanwhile, total gaming revenue across all verticals—including casinos, iGaming, and sports betting—rose 3.7% compared to March 2024.
The previous year, iGaming contributed $2.39 billion to New Jersey’s $6.3 billion total gambling revenue, marking a 24% annual rise.
This rapid expansion has drawn renewed attention from legislators and state leaders to revenue structure and consumer protection.
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As part of his $58.1 billion fiscal 2026 budget proposal, Governor Phil Murphy unveiled a plan to raise the online casino tax rate from 15% to 25%, matching online sports betting’s jump from 13% to 25%. The administration estimates these changes would generate approximately $402 million more annually for the Casino Revenue Fund, which supports senior and disability programs.
Industry reaction has been swift and critical. Big names in the industry warned that doubling taxes “will have a major impact on your favorite online games, putting promotional offers and the best odds at risk,” and bipartisan state legislators cautioned that higher taxes threaten jobs, investment, and consumer experience.
Parallel to tax changes, New Jersey lawmakers are advancing legislation to ban so‑called sweepstakes casinos, platforms where users buy virtual currency (“coins”) to play casino‑style games and redeem prizes. The push is led by Assembly Bill A5447, sponsored by Clinton Calabrese, which passed unanimously through the Assembly Tourism, Gaming & the Arts Committee and now moves to the Consumer Affairs Committee.
Calabrese’s bill defines a prohibited sweepstakes as any game or contest in which participants can win prizes by purchasing virtual credits convertible to cash or merchandise, unless entry is free or tied to a modest purchase (e.g., food or non‑alcoholic beverages under $20).
The New Jersey Responsible Gaming Task Force, in its March 2025 report to Governor Murphy, endorsed the sweepstakes ban, citing the lack of oversight on unregulated platforms. According to the Task Force, these sites operate like real‑money casinos but lack critical protections: no age verification, no self‑exclusion tools, no anti‑money‑laundering or fraud controls, and frequently poor payout transparency.
Penalties under A5447 include up to $100,000 fines for first offenses, with escalating actions for repeat violations.
New Jersey is once again testing the balance between innovation and oversight. As online gambling surges, lawmakers are tightening the screws: raising taxes, banning sweepstakes platforms, and signaling a tougher stance on unregulated play. Whether these moves future-proof the industry or push players elsewhere will depend on how the market responds. For now, the message is clear: in the world of New Jersey betting, the rules are changing fast.
For more information, read our post about New York online casinos, which covers the neighboring state.
