New Jersey lawmakers have passed legislation banning online sweepstakes casinos, making the state the sixth in the U.S. to impose such a ban. The Assembly approved the bill A5447 with a vote of 69-10-1, and the Senate followed with a 34-5 vote on bill S4282. The legislation now awaits Governor Phil Murphy's signature. Concurrently, New Jersey has enacted a tax increase on online gaming, mobile sports betting, and daily fantasy sports (DFS), raising rates from 13% and 15% respectively to a uniform 19.75%. The tax hike passed the Senate 25-14 along party lines and is also expected to be signed into law by Governor Murphy. Industry analysts, including Truist, suggest operators may offset the tax increase by reducing promotional offers. Meanwhile, at the federal level, a Senate bill nicknamed the "Big Beautiful Bill" proposes changes to gambling taxation, including permanent limits on gambling loss deductions. This federal proposal has raised concerns among industry advocates who warn it could increase illicit gambling and negatively impact professional gamblers, as it would restrict loss write-offs to 90%, potentially resulting in tax liabilities even when players lose money.