New Jersey’s gambling industry is experiencing a banner summer, fueled by rapid growth in online gaming. In July alone, online gambling brought in nearly $250 million — a 27% jump compared to the same month last year, according to the state Division of Gaming Enforcement. June also saw a strong performance, with online revenue up more than 23% year-over-year.
Through the first seven months of 2024, online gambling generated over $1.6 billion, marking a 23.3% increase from the same period in 2023.
The gains weren’t limited to online platforms. In-person casino gambling in Atlantic City also showed growth, albeit more modest. Total revenue from physical casinos reached $1.66 billion by the end of July.
Tax Increases Target Growing Digital Sector
As revenue from online gambling continues to climb, New Jersey lawmakers have moved to capture a larger share for the state budget. Starting July 1, tax rates on online casino gambling and mobile sports betting were increased from 15% and 13%, respectively, to 19.75%.
The hikes are part of a broader plan by Governor Phil Murphy and Democratic legislators to raise an extra $600 million annually. According to the state Treasury, these two changes alone are expected to generate about $209 million in additional revenue in the 2026 fiscal year.
Murphy initially proposed raising both rates to 25%, but following industry opposition and private negotiations, lawmakers settled on the lower rate.
Strong Year for Casino Revenue
A recent report from Stockton University showed that gross gambling revenue from New Jersey casinos totaled nearly $5.7 billion in 2024. “Driven largely by taxes levied on the growing internet gaming and mobile sports betting market, Atlantic City casino total taxes and fees increased 11% 2025,” the report said.
Total tax collections from casinos hit $883.2 million in 2024, up from $796 million in 2023. Of that, $572 million went into the Casino Revenue Fund, which supports services for senior citizens and residents with disabilities. Additional funds from sports betting taxes support the general state budget.
A Decade of Digital Expansion
New Jersey’s journey into online gambling began in 2013 under then-Governor Chris Christie, who legalized digital casino games with a 15% tax rate — nearly double the 8% charged for in-person gambling.
In 2018, after the U.S. Supreme Court overturned a federal ban on sports betting, New Jersey quickly legalized both in-person and mobile wagering under Governor Murphy. Mobile sports betting was initially taxed at 13%.
Online gaming continues to outperform other gambling categories. According to Stockton’s data, casino operators earned $2.4 billion from online table games like poker and blackjack in 2024. Slot machines generated $2.1 billion, while table games brought in $699.7 million. Mobile sports betting contributed $486.5 million, and in-person sports betting accounted for just $6.5 million.
Even before this summer’s tax hike, the state was already seeing steady growth in gambling-related tax revenue, thanks largely to the popularity of internet gaming and mobile wagering.
Source:
“NJ’s gambling industry is having a good summer. The state is benefiting”, njspotlightnews.org, August 25, 2025
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