..

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

Gambling911 Welcomes Wager6

Gambling911 Welcomes Wager6

Claim your exclusive 200% welcome bonus - For Gambling911 readers ONLY!!!

Survey Shows America Does Not Want the Astros as World Champs

Survey Shows America Does Not Want the Astros as World Champs

It’s clear that America hasn’t forgiven the Astros for their cheating transgressions two years ago.

You Can Bet on Aaron Rodgers Halloween Costume

You Can Bet on Aaron Rodgers Halloween Costume

Rodgers revealed that the growing of his hair "has been a year in the making” for his Halloween costume.

DraftKings Scraps Entain Bid: Stock Surges

DraftKings Scraps Entain Bid: Stock Price Surges

DraftKings stock shot up 8% Tuesday on the news.  The deal was said to have been worth upwards of $22.4 billion.

Regulators Begin Expressing Concerns Over Deluge of Sports Betting Advertisements

Regulators Begin Expressing Concerns Over Deluge of Sports Betting Advertisements

US regulated sports betting firms face the prospect of having their ads regulated following a series of complaints.  Will the USA go the way of the United Kingdom and Spain when it comes to putting the kibosh on these ad spots?

Syndicate