Betting in New Jersey

While many states followed, the Garden State was the one that made history: in 2018 it became the first state to successfully challenge the federal sports-betting ban under Professional and Amateur Sports Protection Act (PASPA) at the Supreme Court.

Their victory didn’t just open sportsbooks in NJ, it unlocked regulated sports wagering for dozens of other states.

New Jersey’s betting market isn’t slowing down anytime soon - in fact, it’s accelerating.

In 2024 alone, the state pulled in roughly $6.3 billion in total gambling revenue, setting yet another record. Online casinos were the star of the show, growing more than 20% year over year and now outpacing the retail side entirely.

For players, that growth means more competition among operators - and more perks for you. Bigger bonuses, more polished apps, and a flood of new games are all part of New Jersey’s ongoing boom.

New Jersey’s tax structure is designed to make sure the state wins something from every bet. Sportsbooks and casinos now pay around 19.75% on their revenue - one of the highest rates in the country.

That tax doesn’t hit your wallet directly - but it does influence operator behavior. Higher tax rates mean operators might compete harder on promotions and bonuses to maintain volume.

For players, it’s simpler: any winnings count as taxable income. You don’t pay a special gambling tax, but your profits get added to your annual income and taxed at your usual rate. Whether you win $50 or $5,000, Uncle Sam and the state of New Jersey both expect their cut - so keep those W-2G forms handy if you score big.

New Jersey bettors can legally wager on college sports, but with one major exception: no betting on in-state teams or events taking place in New Jersey.

That means you can’t place wagers on Rutgers or Princeton, nor on NCAA tournaments hosted within the state. Every other college matchup, however, is fair game - including March Madness, provided no NJ schools are involved.

Unlike most states, New Jersey’s robust real-money betting market leaves no room for sweepstakes-style casinos or social sportsbooks. These platforms - which operate on virtual currencies and prize systems elsewhere - are not permitted under NJ gaming law.

Because the state already offers fully licensed sportsbooks and online casinos, sweepstakes models are unnecessary and explicitly restricted. Bettors here should stick to real-money sites licensed by the New Jersey Division of Gaming Enforcement (DGE) for full protection and fair play.

Daily Fantasy Sports are legal and thriving in New Jersey, with major operators like Underdog, DraftKings and FanDuel offering classic salary-cap contests.

However, newer “pick ’em” formats - where players choose statistical outcomes similar to prop bets - are not allowed. These games fall too close to traditional sports wagering, which is tightly regulated under NJ’s betting laws.

Prediction markets such as Kalshi are accessible to New Jersey residents under federal regulation from the Commodity Futures Trading Commission (CFTC), allowing users to trade on real-world outcomes like politics, economics, and sports.

That said, their legality is under review their legal footing in the Garden State is being tested.

In early 2025, New Jersey’s Division of Gaming Enforcement ordered Kalshi to halt operations, arguing its markets function too much like sports betting. Kalshi fought back in federal court - and won a temporary ruling that allows it to keep operating while the case plays out.

For now, that means you can still access and use Kalshi legally, but the long-term picture remains uncertain.