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What's legal
New Jersey brought the case that ended the federal sports betting ban, and the first legal bets were taken at Monmouth Park on June 14, 2018. Online betting followed in August 2018. You must be 21 or older and physically inside New Jersey to bet online. The governing law is the Sports Wagering Law, P.L. 2018, c. 33.
The Division of Gaming Enforcement (DGE) runs the market. Every online sportsbook operates under the license of an Atlantic City casino or one of two racetracks, Meadowlands or Monmouth Park. The DGE's own list shows 13 online sportsbook brands, one of the largest fields in the country, plus sportsbook lounges at casinos and tracks.
Crypto and offshore sites
Licensed New Jersey sportsbooks are US-regulated and fund accounts in dollars. Crypto is not a standard deposit method, so if you hold coins you would normally sell them for dollars first and check the app's cashier for what it accepts.
Offshore crypto sportsbooks hold no New Jersey license. They are not licensed in any US state. A licensed operator answers to the DGE, which handles player complaints about licensed books. An offshore site answers to no one in New Jersey, so a frozen balance or a refused payout leaves you with little recourse.
What's changing
In March 2025 the DGE sent Kalshi a cease-and-desist letter over sports contracts. Kalshi sued, and a federal district court granted it a preliminary injunction. On April 6, 2026 the Third Circuit affirmed 2-1, holding that federal commodities law likely displaces New Jersey's gambling laws for sports contracts traded on a CFTC-registered exchange.
New Jersey filed a petition for Supreme Court review on September 2, 2026 (Flaherty v. KalshiEX, No. 26-299), pointing to a conflict with the Ninth Circuit's Nevada ruling. The Court docketed it on September 8 and extended Kalshi's response deadline to November 9, 2026. Several amicus briefs have been filed. The Court has not decided whether to hear the case, and the injunction stays in place meanwhile.
Tax on winnings
New Jersey taxes gambling winnings, including sports betting, under its gross income tax at graduated rates, on top of federal tax. Losses can offset winnings from the same year, but you cannot report a net loss. Keep records, and ask a tax professional about your own return.
Common questions
Is crypto sports betting legal in New Jersey?
Betting with a licensed New Jersey sportsbook is legal, but crypto is not a standard deposit method there. Offshore crypto sportsbooks are unlicensed in New Jersey.
Is Kalshi legal in New Jersey?
A federal appeals court let Kalshi keep offering sports contracts while the case continues. New Jersey has asked the US Supreme Court to review that ruling.
When did online betting start in New Jersey?
Online sports betting began in August 2018, two months after the first in-person bets on June 14, 2018.