All gaming industry followers in the U.S. know that lawmakers have varying sentiments on what tax rate to charge on sportsbook gross gaming revenues.
But this week, the non-profit U.S. Tax Foundation issued a comprehensive report providing great detail on those various rates.
For instance, the highest tax rate of 51% applies in New York, New Hampshire, and Rhode Island – but for two different reasons.
In the latter cases, only one sportsbook is legal. That monopoly status means significant savings in marketing and advertising costs because there is no legal competitor around to potentially steal market share. New York lawmakers, meanwhile, correctly deduced that, as the largest state in the U.S. to offer a free-market sports betting environment, there would be no shortage of major players willing to shoulder that heavy tax burden.
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