Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioLegal gambling in New Jersey had a record month of revenue in July, reporting a 10% year-on-year increase to $606.2 million. Meanwhile, Gov. Phil Murphy has further protected the industry by signing off on a bill that prohibits sweepstakes casinos in the state.
Online casino revenue soared to a record $247.3 million, an increase of 26.6% from July 2024. Year-to-date, iGaming has collected $1.63 billion in revenue, representing a 23.3% growth compared to $1.33 billion for the same period last year.
The New Jersey Division of Gaming Enforcement (NJDGE) reported the record figures, but also noted that revenue from sports betting fell slightly. Revenue from sports betting across the state’s casinos, race tracks, and sportsbooks was $74.8 million, a 6.6% decrease when compared to $80 million reported for July 2024. So far this year, the state has seen a 4% decline in revenue from sports wagering.
July marked the first month of New Jersey’s increased tax rates on gambling, at 19.75% for both online sports betting and casino revenues. As a result, the state collected $81.7 million in tax revenue this month. Under the previous rates of 15% for online casinos and 13% for sports betting, the state would have collected around $16 million less.
Governor Signs Off on Bill Banning Sweepstakes
Lawmakers moved to protect the thriving online casino industry by passing a bill that criminalizes sweepstakes casinos. Bill A5447 gained approval in both chambers in June and had been waiting for Gov. Murphy’s signature.
Murphy finally signed his name on the bill on Friday, which prohibits any game in which players pay for entries to win prizes, including online sweepstakes casinos.
There had been rumors that Murphy was going to veto the bill, as was the case in Louisiana, where Gov. Jeff Landry said the state’s gambling regulators already had the authority to shut down unregulated gambling. The Social and Promotional Games Association (SPGA) urged him not to sign, calling the bill “rushed through the legislature to appease entrenched casino interests.”
However, many sweepstakes operators had already left the state in anticipation of the bill’s enactment. New Jersey becomes the fifth state to pass legislation targeting the platforms, following Montana, Connecticut, Nevada, and New York.
Battle With Prediction Markets Aims to Safeguard Sports Betting
As lawmakers have taken action against unregulated online casinos, the state is also in an ongoing battle against prediction markets, which are seen as a threat to legal sports betting.
The NJDGE issued cease-and-desist letters to Kalshi and Robinhood in March over claims that the platforms’ sports markets violate state gambling laws. Kalshi responded by suing the state and was granted a preliminary injunction, allowing it to continue operating in New Jersey.
The platform claims its markets are legal under federal law, but in court battles in Maryland and Nevada, it is facing increasing challenges. A further hearing is set for September 8 in New Jersey, and the NJDGE is likely to draw on the decision of a judge in Maryland not to grant Kalshi an injunction.
In Nevada, the state’s gambling regulator has called on Kalshi to release additional documents detailing its markets and disclose its communications with the Commodity Futures Trading Commission (CFTC).
With sports betting revenue down, the NJDGE will be eager to slow the growth of sports prediction markets, as it has with the crackdown on unregulated casino platforms.
