New Jersey Considers 9% Tax on Prediction Markets

New Jersey is mulling over a 9% tax on prediction markets, with previous provisions focusing on tighter regulation dropped. The bill allows the tax to be collected from operator’s fees and revenue from prediction markets, but not the total volume of event contracts traded.

The Senate Budget and Appropriations Committee greenlit S4447 sponsored by Senate President Nicholas Scutari and Sen Paul Sarlo on June 28, 2026. The bill passed with a 9-4 vote. An Assembly Bill, A5336, sponsored by Assembly Speaker Craig Couglin, and Assembly members Linda Carter, William Moen, and Eliana Pintor Marin, is also looking to muster support for the proposal.

The final task of potentially signing them into law falling on Gov. Mikkie Sherrill. The original A5336 and S4447 also wanted to prohibit betting on political events and death, but attempts to regulate the sector were dropped, with the focus shifting purely on taxation. Kalshi has recently secured a preliminary injunction against New Jersey as the Garden State seeks to force the platform to shutter event contracts that it considers to be a form of gambling.