New Jersey Online Casino Regulatory Headlines To Watch In 2026

The last year of New Jersey online casinos has been very memorable.

Along with record revenue being set, a lot of regulatory moves were made that had a notable impact on the state’s iGaming industry.

Here’s a look at what stood out in 2025, and how it may impact the regulatory landscape for 2026 in the Garden State.

NJ Online Casino Revenue Tops Atlantic City

It was a record-setting year of revenue for New Jersey online casinos.

Following a monthly record of $273.2 million in December, New Jersey finished 2025 with $2.91 billion.

The monthly record was a new high by nearly $13 million compared to October’s $260.3 million.

When it comes to the yearly total, 2025 saw its iGaming revenue jump up 22% compared to $2.39 billion in 2024.

The late surge in December also allowed NJ online casinos to sneak past Atlantic City casino revenue for 2025. The nine retail casinos finished the year with $2.89 billion in revenue.

New Jersey Online Tax Rate Pushed to 19.75%

One of the big developments in NJ online gambling in 2025 came at the end of June.

Then-Gov. Phil Murphy signed a bill to increase the tax rate on both online casino and online sportsbook operators to 19.75%.

Previously, iGaming was taxed at 15%, while online sportsbooks were taxed at 13%.

Murphy had proposed a tax rate of 25%, but legislators brought the number down to a middle ground. Even with the hike, the NJ tax rate is still among the best for US iGaming and online sportsbook states.

June marked the final month of the 15% online casino tax rate. That month, NJ received $34.5 million of tax revenue from the $230.7 million the operators collected that month.

The next month, July, tax revenue under the new 19.75% rate jumped to $48.9 million from $247.3 million in iGaming revenue.

December’s record month of online casino revenue generated $53.9 million in tax revenue for New Jersey.

New Jersey Bans Dual-Currency Sweepstakes

Another major regulatory move that occurred in New Jersey in 2025 was the banning of dual-currency sweepstakes gaming.

In Aug. Gov. Murphy signed a bill that would make operating or using a dual-currency sweepstakes casino illegal in the state of New Jersey.

The only exception to that is a sweepstakes platform that is at no cost to its players. Prizes would not be able to exceed $20.

New Jersey’s Division of Gaming Enforcement and Division of Consumer Affairs oversee the implementation of these policies.

Other Regulatory Battles Entering 2026

New Jersey has plenty of other regulatory battles continuing into 2026, more around sports betting topics. Here’s a look at what is currently being debated.

Micro-Betting: New Jersey lawmakers currently have pieces of legislation in the Senate and Assembly that would ban online sportsbooks from offering micro bets. These a wagers that pertain to a very specific outcome during a game that will be resolved within moments of making a wager. That includes the result of an upcoming pitch or at-bat. We’ve seen multiple betting scandals in professional sports stemming from micro bets.

Prop-Betting: New Jersey legislators have discussed placing a ban on prop bets for college sports, citing concerns over gambling-related crime and harassment of athletes. While no law was passed, the idea continues to be discussed. Gov. Murphy did pass a low in 2025 that banned colleges and universities from partnering with online sportsbooks.

Prediction Markets: While prediction markets are not banned in New Jersey, some operators have launched markets in NJ that already have online sportsbooks in the state. That includes FanDuel and DraftKings. However, these operators are not offering sports-related markets in NJ, despite doing so in other states where online sports betting is not legal. NJ lawmakers and regulators have been debating the legal standing of prediction markets and actions could be taken at some point in 2026.