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

New Jersey’s gambling industry just delivered its biggest tax haul in state history. Gaming tax revenue for fiscal year 2026 hit a record $925.7 million, a 42.3% jump from the previous fiscal year, according to figures released by the state’s Division of Gaming Enforcement. The surge was driven largely by higher online gambling tax rates and continued growth across New Jersey’s online casino market.

When parking fees, hotel revenue, and forfeited winnings are factored in, the state’s Casino Revenue Fund climbed to a fiscal-year total of $937.3 million. That fund exists specifically to support programs for senior citizens and residents with disabilities, including hearing aid assistance, pharmaceutical aid, and other community-based services distributed across every county in the state.

Why the Numbers Jumped So Much

The single biggest driver behind the 42.3% increase wasn’t just more people gambling — it was a policy change. New Jersey raised its tax rate on online casino and sports betting revenue to 19.75% on July 1, 2025, up from 15% on internet gaming and 13% on sports wagering. That higher rate applied across a full fiscal year of already-growing New Jersey casino apps activity, compounding the effect.

The underlying business was already expanding on its own. Internet gaming revenue in New Jersey totaled $2.91 billion in 2025, a 22% increase over the prior year, as online casino products continued to pull bettors away from traditional in-person visits to Atlantic City’s nine casinos. That growth trend carried into 2026 and gave the higher tax rate a much larger base to apply against.

A Broader Revenue Milestone for the State

The tax collection record arrived alongside another benchmark: New Jersey’s total gaming revenue — casinos, racetracks, and their online partners combined — crossed $4 billion faster in 2026 than in any previous year. State officials noted the pace reflected sustained strength in both online casino play and the state’s mature sports betting market, even as growth in retail casino visits has leveled off in recent years.

For context, April 2026 alone produced $600.8 million in total gaming revenue, up 12% year-over-year, pushing the year-to-date total through April to $2.30 billion — 8.6% ahead of the same stretch in 2025. Those monthly filings show the growth wasn’t a one-time spike tied to a single big month, but a steady climb that built throughout the fiscal year.

What It Means Going Forward

The Casino Revenue Fund’s record haul gives New Jersey lawmakers more resources to direct toward senior and disability assistance programs statewide, though how that money gets distributed each year is ultimately a legislative decision. For the gaming industry, the results reinforce that the higher tax rate hasn’t slowed consumer demand — online casino platforms and sportsbooks kept growing even as operators absorbed a larger cut going to the state. With internet gaming now generating the bulk of New Jersey’s gambling activity, expect regulators in other states weighing their own online casino tax structures to watch how New Jersey’s experiment plays out over a full fiscal year of data.