The New Jersey lawmaker who proposed raising the tax rates on internet gambling and online sports betting nearly a year before Gov. Phil Murphy did so says the two forms of gambling don't pay "their fair share" of taxes.
Sen. John McKeon, D-Essex, Passaic, said Friday he supports the governor's call for higher taxes on both forms of gambling — something he advocated for 10 months ago in a bill that has gone nowhere since then.
In his budget address Tuesday, the Democratic governor proposed increasing the tax rate on both forms of online betting to 25%. Online sports betting is currently taxed at 13%, and internet gambling is taxed at 15%.
McKeon introduced a bill last April that would have increased that rate to 30%.
"The issue of raising these tax rates has been something I have championed for over a year now, so I commend the governor for recognizing the revenue-generating potential of these rapidly growing industries for our state," he said in a statement.
"Online gambling and sports betting companies have not paid their fair share in taxes," McKeon said. "The current rates in New Jersey are comparatively low when looking at competitors in nearby states, like Pennsylvania and New York, which have rates double and triple those of our state, respectively."
Atlantic City's casinos and their political allies in both parties say they will fight the proposal, saying it would damage the most successful and fastest-growing segments of New Jersey's gambling market.
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