..

Can Sportsbooks Survive a 1 Percent Tax Hike as US Supreme Court Leans Towards Legalization

Written by:
Guest
Published on:
Jan/10/2018

The following is brought to you by I. Nelson Rose, one of the leading attorneys in the world of gambling and a regular contributor to the Gambling911.com website.

The U.S. Supreme Court appears to be about to rule that the federal law that prevents states from legalizing sports betting, the Professional and Amateur Sports Protection Act (“PASPA”), is unconstitutional. There are at least a dozen states that appear ready to enact new laws to introduce or expand legal intra-state wagering on sporting events this year, once the High Court decision is announced.
 
This raises, as always, the question of who will get the money.
 
Indiana Rep. Alan Morrison has introduced a bill that would give the national sports leagues 1% of the new sports betting handle, as an “integrity fee.” The “sports governing bodies,” of course, think this is a great idea. But is imposing a 1% fee on gross gaming wagers in addition to a proposed 9.25% state tax on gaming revenue, on top of the existing 0.25% federal excise tax on the handle, a good idea for operators?
 
In 2008, the State Legislature of Delaware was considering reopening sports books in racinos, which the state was allowed to do, because it had been grandfathered-in under PASPA. I was retained as the legal consultant by the Delaware State Lottery, which runs all sports betting, to advise the state on what the tax rate should be on the new sports books.
 
I prepared a report and recommendations. I've posted a simplified version of the report’s discussion of the impact of taxes on operators, and a quick analysis of the Indiana plan, which appears to be spreading across the country.


Website: www.GamblingAndTheLaw.com/
Facebook: @GamblingAndTheLaw
Twitter: Gambling_And_The_Law@LawOfGambling (https://twitter.com/LawOfGambling)

Gambling News

Where Can I Bet the Jake Paul vs. Ben Askren Fight Online?

Where Can I Bet the Jake Paul vs. Ben Askren Fight Online?

Social media mogul Jake Paul and former UFC fighter Ben Askren are set to fight Saturday night and this one should get plenty of bets.

NFL Inks Sports Bet Deals With Caesars, FanDuel, DraftKings

NFL Inks Sports Bet Deals With Caesars, FanDuel, DraftKings

Once one of the staunchest opponents of allowing people to bet legally on its games, the NFL on Thursday announced deals with three major gambling companies to become official sports betting partners.

Cryptocurrency Use In Africa

For centuries, Africa has been in the shadows of the world and economic growth. As a continent, Africa is home to more than one billion people who are still largely living without basic needs like access to health care, education, and sanitation. As a consequence, the region is in dire need of an economic revolution.

 DraftKings and PGA Tour Team Up for Sports Betting in Arizona

DraftKings and PGA Tour Team Up for Sports Betting in Arizona: Ducey Makes it Official

Arizona Governor Doug Ducey, the grandson of World Wide Tele Sports founder Bill Scott, has officially signed off on the legislation.

No Foreign Born Horses at This Year's Kentucky Derby, Further Uncertainties

No Foreign Born Horses at This Year's Kentucky Derby, Further Uncertainties

Panadol will not be participating in this year's Kentucky Derby.  The UAE Derby runner-up's absense ensures there will be no foreign-born horses in the 2021 race.

Syndicate