Here’s an extraordinary administrative move, with an analogy matching the heart of the basketball season.
FanDuel has enlisted New Jersey customers in a full-court press on state government to reject a hefty proposed tax increase. The operator has dangled preservation of comps and less favorable sports-event odds as the stakes.
On Wednesday, FanDuel sent email notices to customers, asking them to contact state lawmakers and push for New Jersey’s newly proposed tax hike to be denied. They also fast-tracked the request by providing a link connecting customers with legislators.
The emails came one day after Gov. Phil Murphy unveiled a proposed 2026 budget including a sports betting and online casino tax bump to 25%, up from 13% and 15%, respectively. That would be create a substantial impact on operators, especially those with a footprint both in the online and brick-and-mortar space.
FanDuel said the tax, in turn, could negatively impact customers via fewer online promotions or less-favorable pricing on sports events.
‘It directly impacts me and other responsible bettors’
FanDuel provided an email template for customers to send their representatives. The template is as follows:
Dear (Lawmaker)
I don’t usually do this but I’m emailing today to ask for you – as my representative – to say no to the proposed tax increase on legal mobile betting. A 100% tax hike means fewer promos, worse odds, and a less enjoyable market for consumers like me. If legal operators can’t compete, more bettors will turn back to illegal sites that offer better deals but lack protections.
This tax hike doesn’t just hurt businesses—it directly impacts me and other responsible bettors.
Please don’t take away what makes legal betting worth it. Oppose this proposal.
Customers were than asked to fill out their information.
Customers may rally behind FanDuel here, as several NJ patrons have told Comped that they complied with the email request. BetMGM has also sent a similar email to its New Jersey customers.
In its email, FanDuel contends the proposed tax hike in New Jersey “would result in a nearly 100% tax increase! With massive, unfair tax hikes like this, everyone loses — especially customers.”
FanDuel continues, saying:
- “Customers would have access to fewer promotions and bonuses — and more taxes mean worse odds for players.”
- “Legal operators have invested millions into the state, created thousands of new jobs, and generated hundreds of millions each year in new tax revenue to fund important community initiatives.”
- “That could drive players to the illegal market, putting all that investment in NJ — and consumer protections — at risk.”
Budget projections? $402.4 million more tax dollars
New Jersey, which gave birth to legalized sports wagering by getting PASPA repealed in 2018, has offered the best rates for operators in the nation. Even with its benign 13% tax hold on operators, the state still generated $141.2 million in 2024 sports betting tax revenue. On the iGaming side, the state received $358.3 million with the 15% tax rate.
New Jersey already exceeded $62 million in tax revenue for January 2025, according to the NJ Division of Gaming Enforcement.
Internet win skyrocketed 20.9%, from $183.2 million to $221.6 million in a comparison of January 2024 and 2025 totals, according to the DGE.
So Gov. Murphy appears to be targeting a revenue source he considers too lightly taxed. According to the 2026 budget proposal, the increased sports betting and iGaming tax rates would lead to an extra $402.4 million in tax revenue. The budget, overall, is projected to end FY2026 with a $6.3 billion surplus.
FanDuel is a likely objector to new taxes. It led all New Jersey operators in January with $49.7 million online gaming win and $53.1 gross sports wagering revenue.
Likeliest outcome of the proposed legislation
The operators will scream “Technical Foul.” The legislators will listen to patrons and if this proposed tax is enacted, it will likely happen at a lower rate. This scenario will probably repeat itself every couple of years. Unless operators vehemently object, states will assume they can easily absorb the hit.
Gambling has been a windfall in every state where it is legalized. Operators have overcome significant hurdles, like the onerous 51% taxation rate in New York.