New Jersey Gaming Tax Revenue Hits Record $925.7 Million in FY2026, Up 42.3%

New Jersey’s gaming tax collections hit a record $925.7 million in fiscal year 2026, a 42.3% jump from the previous year, according to state figures. The surge pushed the state’s Casino Revenue Fund to a fiscal-year total of $937.3 million once parking fees, hotel revenue, and forfeited winnings are factored in.

The jump wasn’t driven by a single factor. New Jersey’s online casino industry kept growing at a rapid clip through 2025 and into 2026, and a mid-2025 tax hike on internet gaming, online sports wagering, and daily fantasy sports meant the state collected a much bigger cut of that growth than it had a year earlier.

Why the Number Jumped So Much

New Jersey raised its internet gaming tax from 15% to 19.75% effective July 1, 2025, as part of the fiscal year 2026 state budget signed by Gov. Phil Murphy. The same law bumped the online sports wagering tax from 13% to 19.75% and the daily fantasy sports operating fee from 10.5% to 19.75%. Murphy had initially pushed for a flat 25% rate across the board, but lawmakers negotiated the compromise figure after pushback from operators and industry groups. Land-based casino gaming in Atlantic City was left untouched, still taxed at an effective 9.25% including the investment alternative obligation.

Because the increase applied for the full fiscal year rather than blending old and new rates the way FY2025 did, operators paid the higher rate across nearly all of FY2026 — a big part of why the year-over-year jump was so steep. Analysts had projected before the hike that even a partial-year application would have added well over $100 million to state coffers, so a full year at 19.75% landing north of $925 million tracks with those estimates.

Online Casinos Keep Outgrowing the Boardwalk

The tax windfall also reflects how dominant digital gaming has become in New Jersey’s overall gambling market. Internet gaming revenue topped $2.91 billion in 2025, up 22% from the prior year, and for the first time annual online casino revenue exceeded what Atlantic City’s brick-and-mortar casino floors generated. That shift matters for the tax math: online casino revenue is taxed at nearly double the rate of physical slot machines and table games, so as the mix keeps tilting toward apps and websites, the state’s effective take on total gambling revenue keeps climbing even without another rate change.

New Jersey has long been considered the proving ground for U.S. online gambling regulation, having launched legal internet casinos back in 2013 — years before most other states allowed any form of digital wagering. That head start has let the market mature into one of the deepest in the country, with a dozen-plus licensed operators competing for market share among bettors researching online casino promotions before signing up.

Where the Money Goes

Every dollar collected through the Casino Revenue Fund is constitutionally earmarked for New Jersey’s senior citizens and residents with disabilities, a mandate dating back to the 1976 referendum that first legalized Atlantic City casino gambling. The fund covers programs ranging from property tax relief and utility assistance to prescription drug subsidies, hearing aid reimbursements, and paratransit services administered through NJ Transit. A record tax year translates directly into more available funding for those programs heading into the next state budget cycle, giving lawmakers additional room even as they weigh future allocation decisions.

The broader trend line suggests New Jersey’s gambling tax base isn’t leveling off anytime soon. With online casino revenue still climbing and the higher tax rate now fully baked into a complete fiscal year of collections, the state is positioned to keep setting records in the Casino Revenue Fund as long as digital wagering keeps expanding — a dynamic other states weighing their own iGaming tax structures are watching closely as they look for revenue models to fund state and social programs.