Truist views NJ gaming tax compromise as ‘manageable’

Truist says NJ.com is reporting New Jersey Governor Phil Murphy and legislative leaders have struck a deal which includes a less than 20% tax on both the state’s online sports betting and internet gaming. This compares to Murphy’s initial 25% proposal and the current 13% for sports betting and 15% for iGaming, the analyst tells investors in a research note. Truist had expected an “operator friendly compromise” and thinks 20% is “manageable in the shadow” of New York, New Hampshire and now Illinois’ 51% tax. Mitigation can be done via promotion reductions alone, with a 50% mitigation in 2026 “very reasonable and potentially higher afterwards,” contends Truist. If the tax is implemented, the firm expects the gross impact, before mitigation efforts, to company guidance at $35M for Flutter Entertainment (FLUT) and $30M for DraftKings (DKNG).