States earn a great deal of their revenue from lotteries, casinos, and other games where individuals place wagers or bets. New Jersey is no exception and operates a state lottery with the intention of funding public schools. Home to Atlantic City, the Garden State has relatively permissive gambling laws. The state allows the following types of gambling: licensed casinos, horse racing, dog racing, and raffles sponsored by charitable organizations. For gambling, the state levies a 8 percent tax on all winnings. Click on a link below to learn more about New Jersey gambling and lottery laws.