The 2025 New Jersey gubernatorial election takes place on November 4. The future governor of New Jersey, who will be sworn in on January 20, 2026, will be chosen between the Democratic Congresswoman Mikie Sherrill and the Republican former state assemblyman, Jack Ciattarelli. The choice of the next governor will have a significant effect on three major aspects of New Jersey’s gambling industry.
So far, casino-style gambling in New Jersey has been restricted to Atlantic City; however, the possibility of allowing casinos outside of it has been debated for a long time. Potential locations that have been considered include the horse tracks in the Meadowlands and Monmouth Park.
The purpose of opening additional casinos in the state is to respond to competitive pressure from New York and the online gambling industry. Atlantic City’s in-person game revenue has been declining, while three companies have submitted final proposals for up to three casino licenses in New York City. Additionally, online gambling has been increasing in prominence and has proven to be fierce competition to brick-and-mortar casinos. It grants gamblers access to a large selection of casinos worldwide, including VPN friendly casinos that forgo KYC procedures and allow players to keep their location and identity private.
The issue is more complex, as opening new casinos would address competition from outside the state, but these casinos would also be competing with those of Atlantic City.
New Jersey’s current governor, Phil Murphy, has expressed support for expanding the state’s casino market outside of Atlantic City; however, no measures were implemented.
While the two gubernatorial candidates have not taken an official stance on the issue, the general policies they advocate imply certain potential actions.
Mikie Sherrill has long been an ally of unions and will likely prioritize worker protection. Should new casinos be built beyond Atlantic City, layoffs can be expected in Atlantic City’s casinos.
Jack Ciattarelli, on the other hand, can be expected to calculate potential revenue gains and losses before making a decision.
Neither candidate has explicitly expressed a stance regarding casino revenue taxes; however, they have made their tax policies in other areas clear.
Ciattarelli's plan includes a comprehensive reform with an overall reduction of taxes. Consequently, casino revenue taxes could potentially be reduced, or at least not be raised.
Sherrill aims to increase affordability for middle-income homeowners, primarily through the introduction of a variety of tax credits. She has not announced any tax increases, yet a tax increase for casinos is not impossible, considering her plan to improve affordability without scaling back services.
Either candidate’s policy will likely be preferable for the gaming industry compared to Phil Murphy’s. In February, Murphy proposed a 25% tax rate on online gambling and sports betting, the rates at the time being 15% and 13% respectively. The bill did not pass, and Murphy ultimately came to a compromise with the legislation at a 19.75% tax rate for both online gambling and sports betting.
Under New Jersey smoking laws, smoking is allowed on up to 25% of a casino’s floor in Atlantic City, yet this might change with the election of a new governor.
During the 2024 US House of Representatives elections in New Jersey, when Mickie Sherrill ran in New Jersey’s 11th District, she expressed a stance in support of a smoking ban, arguing that smoking indoors deters casino visitors, particularly young people. Despite her not commenting on the issue during her gubernatorial campaign, a smoking ban in Atlantic City’s casinos is likely to be introduced should she be elected.
Jack Ciattarelli, on the other hand, has not stated his position on the subject before, and it is highly implausible that a smoking ban would be enacted if he became governor.
New Jersey’s choice of governor will have a considerable impact on gaming in the state. Every choice carries tradeoffs, yet regardless of who wins, some facets of the industry will likely change.
