New Jersey’s online betting scene may be getting a shakeup! The state Senator John McKeon has proposed a tax increase for online casinos and sportsbooks that could double the current rates. Everybody is talking about this both the benefits and the drawbacks. So let’s unpack the situation.
Online Gambling Tax Time: What To Know
At this point, New Jersey takes in a nice bit of revenue from taxes on online gambling. Online casinos pay 17.5 percent and sportsbooks 14.25 percent. But Senator McKeon believes they can (and should) do more. His bill would raise those rates to a flat 30 percent across the board.
There’s nothing secret — New Jersey officials view online gambling as a goldmine. Online casinos have paid more than $1.36 billion in taxes since launching in 2013. And that’s not including extra taxes from online sports betting, which began in 2018 and has generated an additional $438 million. McKeon’s proposal would dramatically up those numbers, possibly providing the state with more resources to eliminate the cutbacks in important programs.
Is This a Good Bet for Everyone?
While the state may rake in a windfall, this tax increase isn’t as rosy as it sounds. Here’s the flip side:
Small online gambling companies may find it difficult to absorb a tax increase this steep: Smaller Operators Left Out in the Cold They may not have the financial muscle to survive, arguably starving players of competition and choice.
Will It Cost Us More to Play? : Although the tax increase is aimed at operators, they may simply pass some of that cost onto players. It might also mean higher fees or lower payouts, however.
So, What Happens Now?
The bill, S3064, is only in the early stages. Expect the gambling industry, especially Atlantic City casinos, to fight tooth and nail. Ultimately, New Jersey lawmakers must determine whether the proposed benefits justify the risks.
An Online Gambling Operation Without Bygone Hassles
As you have all access to the features and service, your operating organization is running well, with no complication or drawback. It lets you concentrate on growing and scaling your business hassle-free.
With the specialized services of VIP Pay Per Head, you are destined to thrive in a very competitive environment. Having access to live data, customizable bets, and reporting tools can put you in a powerful position. With such efficiency and flexibility, you can respond to shifts in the market with confidence, helping improve operational performance across your organisation.
Say goodbye to the old days of manual processes or outdated systems with VIP Pay Per Head. The new era of sports gambling has arrived, and CrowdX shifts the center of gravity away from the outdated business model of sports gambling to an evolutionary approach creating new opportunities, and success for many individuals The use of this unique platform is providing the an exciting simplicity of operations for the sports gambling investor.
