Unlike New Jersey, Nevada does not differentiate online vs retail gambling in their public submissions. Over 80% of all sports bets placed in New Jersey were made online, as opposed to at a retail location, meaning that a vast majority of New Jersey wagers were taxed at the 13% rate. Nevada has a much lower tax rate of 6.75% for all types of sports bets. Why? New Jersey has an 8.5% tax for sports bets made in person and a 13% tax for online and mobile sports bets. So people bet nearly $2 billion more on sports in Nevada than New Jersey during this time, but the latter took in more in tax revenue. New Jersey makes more tax revenue from sports betting than Nevada, despite having a handle that’s almost $2 billion less.
