N.J. wants a massive tax hike for online casinos. Here’s how they’re fighting back.

Gov. Phil Murphy‘s has proposed a huge tax increase for the internet gaming and online sports wagering industries to help fund the state budget.

But online casinos and sports wagering sites say the tax hike could translate into lower odds for gamblers.

Taxes on online gambling companies would increase from 15% to 25% under Murphy’s proposed state budget, while taxes on online sports betting company revenues would go from 13% to 25%.

MORE: 5 of the biggest reasons N.J.’s record-spending budget is increasing

Murphy’s administration has been mum on the controversy around its proposed double-digit increase. The stakes are high because a large portion of the administration’s deficit reduction plan depends on the money the increased casino taxes will bring into the state.

The Casino Association of New Jersey, which represents Atlantic City’s largest casino groups, did not respond to requests for comment. The organization did however, signal some opposition in a casino trade publication.

“I don’t think the idea is going to go anywhere — and I hope that it won’t,” Resorts CEO Mark Giannantonio, head of the Casino Association of New Jersey said in Casino Reports last month.

“It would be counterproductive, and cause more of that business to go offshore,” Giannantonio said.

After Murphy proposed the tax increases in March, online gambling sites BetMGM and FanDuel sent emails to customers asking for help fighting the proposed tax increases.

“Why does it matter? A tax hike will have a MAJOR impact on your favorite online games, putting promotional offers and the best odds at risk,” BetMGM said in an email urging customers to contact lawmakers.

MORE: BetMGM and FanDuel urge customers to reject N.J. sports betting and online casino tax hike

Murphy administration officials declined to comment.

Gov. Phil Murphy‘s proposed $58.1 billion state budget currently being debated in Trenton includes a variety of new taxes and fees designed to fill a $1.2 billion state deficit.

After Murphy proposed his budget, the nonpartisan analysts at the state Office of Legislative Services said the state budget’s surplus could run out by 2028.

Lawmakers are expected to approve a new budget for Murphy to sign by the end of June.

The plan to raise taxes on the online casino and sports betting industries could generate an additional $402 million for the state’s casino revenue fund and help cover a large chunk of New Jersey’s budget hole.

Money from the casino revenue fund goes to an array of programs that mostly benefit senior citizens and the disabled.

Democrats in South Jersey — who have constituents dependent on Atlantic City’s casinos and their foray into the online world — have said little publicly about the proposed tax.

The online gambling world’s fortunes have increased significantly in recent years, a trend noted by the state Department of Treasury.

“In particular, online wagering revenues have more than offset recent weaknesses in sports betting revenues,” said a budget report by the department.

State Sen. John Burzichelli, D-Gloucester, a South Jersey Democrat, indicated he was skeptical of tax increases earlier this month.

“The process is just beginning,” said Burzichelli, who serves on the Senate Budget and Appropriations Committee. “There’s not an appetite in my mind — I can’t speak for everyone — for new taxes.”

“There’s just enough stress around everything that new taxes are hard to sell to anybody,” Burzichelli said.