The nasty issue of US sales tax on sports betting will be discussed in the latest article next week. SBC webinar The series promises a lively and insightful discussion with four key experts from the gaming, political and legal worlds.
title “Is it time for the federal sales tax on sports betting to apply?”The webinar will be held on April 30th at 10:30 am PST (6:30 pm UK).
Sue Schneider, SBC’s VP Growth and Strategy Americas will host and attend Dina Titus, Nevada Congressman. Vic Salerno, President of US Bookmaking; Bill Miller, President and CEO of American Gaming Association (AGA).And Anthony Cabot, A prominent Fellow of Game Law, UNLV Void Law School (MOD).
The 70-year-old levy, first introduced with a high tax of 10% on sports betting revenue and associated with a $ 50 profession stamp per person engaged in running sports books, is a bookmaker’s levy. It was very effective for going out of business. Of the 24 Nevada books that existed before the excise tax, only four continued to operate after they were adopted. All 13 books in Las Vegas are closed.
When the tax was reduced to 2% in the early 70’s, it was clearly no longer banned from running sportsbooks and eventually Nevada Game Committee In 1975 I was able to return the sportsbook to the casino. The situation improved further in 1982, when Congress reduced the tax rate to 0.25%, spurring significant growth in the sportsbook industry, with 50 books operating in Nevada just two years later.
That tax rate still applies today, and while much less burdensome than Congress’s original 10% tax, it remains a major challenge for incumbents in the market.
Schneider explains: “If the house advantage in sports betting is 5%, this means that in addition to the state tax, there is an additional 5% tax on total game revenue, but with a high state tax on legal betting. Federal taxes affect the ability of legitimate books to succeed in business and compete with offshore illegal books that do not pay taxes. ”
She added: “It raises the question of why the federal government intends to use excise taxes to burden state-licensed sportsbooks when margins are already over-squeezed, and so on. This effectively limits the potential income for the state to fund education and other important public services. ”
Click “When is the federal sales tax on sports betting applicable?” To register for SBC Webinar Here..
The SBC Webinar Series asks if the federal sales tax on sports betting will apply
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