New Jersey’s two racetracks are each getting $3.5 million in the state’s record-high budget to offset cost increases from a tax hike Gov. Phil Murphy previously sought on revenue from sports betting.
As part of New Jersey’s $58.78 billion budget approved on June 30, the state increased the tax on online gambling and sports betting to 19.75% from 15% and 13%, respectively.
This is expected to generate more than $315 million through the current state fiscal year, which runs until June 30, 2026. The two racetracks are also subject to a 1.25% sports betting gross revenue tax from the state.
But the tax threatened to eat into the bottom lines for the Meadowlands Racetrack in East Rutherford and Monmouth Park Racetrack in Oceanport, said Jeffrey Gural, owner of the Meadowlands Racetrack.
