sports betting tax – Bookielink

November 15, 2024

State of the Union: New Jersey to ban college props? Polymarket under fire and more

Welcome to iGB's State of the Union, a look at the biggest North American sports betting stories we've covered over the week and briefs on others we found interesting.

New Jersey bill would ban college-player props

Yesterday (14 November) New Jersey’s house tourism, gaming and the arts committee moved forward a bill that would ban betting college-player prop bets. The bill is likely in response to the NCAA’s campaign to get all US states to ban such bets.

But wagering operators have long argued that banning any kind of bet will only send bettors to the black market. That will take money away from companies and states. And it also puts consumers at risk.

“Player propositions are available on illegal and offshore sportsbooks and removing customers’ ability to place legal wagers will deter bettors from moving to the regulated market,” American Gaming Association SVP of strategic communications Joe Maloney told iGB in May.

Thirteen US states ban betting on college-player p..

August 12, 2024

Politics of DraftKings’ proposed winners’ tax – and how the US industry is responsible for high wagering taxes

There is an argument to be made that DraftKings put the gambling industry in a tough spot in 2019 when it agreed to a 51% tax rate in New Hampshire and that its latest idea to impose a surcharge in high-tax states is a consequence of that.
When DraftKings, in early August, rolled out its plan to essentially tax winners in states with a tax rate above 20%, reaction was overwhelming negative.

Since then, Rush Street Interactive CEO Richard Schwartz said his company won’t follow suit. And Penn Interactive’s Jay Snowden said during the company’s earnings call said that the idea was “interesting” and “unexpected”. He didn’t completely close the door on it, but the company has no plans to tax winners in the near future.

DraftKings says it will impose the surcharge beginning 1 January 2025.

DraftKings is the second-biggest US operator by market share. The only company ahead of it is FanDuel, which declined to comment on the topic. FanDuel’s parent company, Flutter, is set to release sec..

August 2, 2024

Bettors, analysts say “no thanks” to DraftKings’ surcharge idea

US sports betting operators have long been grappling with ways to navigate increasingly high tax rates. But DraftKings' new idea isn't sitting well with bettors or analysts.
DraftKings spurred debated among the wagering community on Thursday (1 August) when it announced plans to implement a gaming surcharge for players in high tax states.

In its Q2 business update, the company said it has “plan to address high tax states”. That is to “roll out a gaming tax surcharge” starting 1 January 2025. This will be applied to winning bets “in any state with a tax rate above 20% that has multiple sports betting operators”. Those criteria currently apply to New York, Illinois, Vermont and Pennsylvania.

New York’s tax rate is 51%, Pennsylvania is 36% and Vermont is 20%. Illinois recently implemented a sliding scale that caps out at 40% for the highest-earning operators. The bottom of the scale is 20%.

DraftKings asserted the surcharge will be “fairly nominal to the customer”. The only ..

July 31, 2024

Bill to repeal US gambling excise tax filed

On Wednesday (31 July) a pair of US senators filed a bill calling for the repeal of the US federal excise tax on gambling. The 0.25% excise tax on the amount of any legal wager is levied above and beyond state taxes.
Senators Catherine Cortez Masto (Nevada) and Cindy Hyde-Smith (Mississippi) filed the bill. Called the “Withdrawing Arduous Gaming Excise Rates Act,” the acronym is “the WAGER Act.” The American Gaming Association (AGA), a trade group, almost immediately came out in favour of the bill. The legislation, the AGA said, would save operators tens of millions of dollars per year in taxes.

“The federal sports betting excise tax was enacted more than 70 years ago as a tool to prosecute illegal sports betting operators,” the AGA wrote in a statement. “Today, with sports betting legal in 38 states and Washington DC, this antiquated tax puts legal operators at a competitive disadvantage and rewards illegal offshore bookmakers that pay no federal or state taxes, offer no responsible..

May 31, 2024

Illinois’ proposed high sports betting tax rate could backfire on lawmakers

Illinois' general assembly made a money grab earlier this week, but gambling stakeholders say it could backfire. Lawmakers sent a FY2025 budget that includes a progressive tax rate topping out at 40% to Governor JB Pritzker.

On the face of it, raising the sports betting tax rate seems like a good way for any state to bring in more revenue. But stakeholders say Illinois consumers will likely be the recipients of unintended consequences. During the house budget debate, one Republican representative suggested an appropriations line for funds to treat the Democrats’ unchecked “spending addiction”.

The budget bill is now headed to Pritzker’s desk and it seems like a slam dunk that he will sign it. That, stakeholders say, will seal the fate of Illinois bettors.

“Players are probably going to see fewer promotions and that is not good for the consumer,” West Virginia lawmaker and government affairs chief for Play ‘n Go Shawn Fluharty told iGB. “It could impact the lines and that is ano..

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Tag: sports betting tax