Bill eyes prediction market operators
New Jersey lawmakers advance plan for 9% tax
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... Legislation that would cerate a tax on immerses derived from the operation of prediction markets has cleared committee on both chambers of the New Jersey Legislature.
.....
The bill would effectively tax companies running prediction markets a 9% tax under either New Jersey's corporation Business Tax or the gross Income Tax, in addition to any taxes they are currently paying.
..... In a state senate budget committee meeting on June 28, [2026] state Senator Paul Sarlo, the Bergen County Democrat who chairs the committee, said the legislation represents a "first step" on state regulation of prediction markets.
..... There is "lot more to come on prediction markets," Sarlo said, explaining that the Legislature wants to "even up the territory with all of our sports-book folks."
..... The committee voted along party lines, with its four Republican members opposing the bill and the nine Democrats supporting it. Sarlo and state
Senate President Nick Scutari sponsored the bill.
.....
In the Assembly Budget Committee, a vote was also divided along party lines.
..... In order to make midnight deadline to ensure that the bill would be eligible for a floor vote on June 30, [2026] the chair, Assemblywoman Eliana Pintor Marin, an Essex County Democrat, took a roll call vote before receiving testimony.
What did opponents say?
..... Representatives from organizations including the AFL-CIO and companies such as Polymarket submitted testimony opposing the bill.
..... Donna DeCaprio, president of Unite Here Local 54, a union that represents hospitality workers in the casino industry, said the prediction markets are operating in the state and are pulling revenue form "brisk-and-mortar casinos.
..... If the state taxes prediction markets, it appears to legitimize them," she said.
..... "Jobs in New Jersey have been lost and will continue to be lost as a result of this," DeCaorio added.
What are prediction markets?
..... Prediction markets are platforms where people can bet on the outcomes of future events.
..... The most notable are polymarket and Kaishi.
..... According to the nonpartisan Office of Legislative Services, if the bill were to be in effect for all of fiscal year 2027 - from July 1, 2026 to June 30, 2027 - it would increase state revenue somewhere between $10.3 million and $15.3 million.
..... Katie Sobko cover the New Jersey Statehouse. Email: sobko@northjersey.com