Several states look to increase taxes on gambling

Budget shortfalls have led several states to look at raising tax rates on casino revenue.

In New Jersey, Governor Phil Murphy tabled a new budget for the 2026 fiscal year which includes a record-high $58.1 billion in costs. To pay for this record budget Murphy has proposed nearly doubling the tax rate on online casino gaming and sports betting.

The current tax rate sits at 13 percent and Murphy wants to increase it to 25 percent.

The tax increase isn’t guaranteed to happen, and state legislators have until June 30 to approve Murphy’s budget. Several changes could possibly be made before that approval occurs.

Other states that are also looking at tax increases on gambling revenue include Maryland, Ohio, and Mississippi.

In Maryland Governor Wes Moore has also included a tax increase on online and brick and mortar casino gaming in his budget to deliver higher revenues to the state. Moore has proposed doubling the tax on online casino gaming from 15 percent to 30 percent and bumping up brick and mortar casino taxes from 20 percent to 25 percent.

In Ohio, Governor Mike DeWine is also seeing double. He has proposed doubling the tax rate on sports betting in Ohio. Sports betting revenue in Ohio is currently taxed at 20 percent, and DeWine wants it increased to 40 percent. This comes after Ohio already increased sports betting taxes from 10 percent to 20 percent in 2023.

Finally, in Mississippi the state’s House Ways and Means Committee has already voted through a tax increase proposal. The tax increase was introduced after online sports betting legislation failed to pass the Senate earlier in the state session.

The proposal from Ways and Means still has to pass votes in the House and Senate and is calling for taxes on the state’s casino revenue to be increased from 12 percent to 16 percent.