An Essential Breakdown Of Realistic Solutions Of Sports Betting

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Is It Revenue Sharing Or High Taxes For Sports Betting? Ask Rhode Island, Delaware

High taxes could slow sports betting growth Casinos that cannot reap profits from sports betting might not market it or offer competitive pricing to attract customers to the legal market. It’s a situation the American Gaming Association and casino interests are monitoring in Rhode Island and beyond. “States should focus on the consumer experience and empower licensed, regulated operators the ability to offer a competitive product that fosters betting in a safe way and shuts down the illegal market,” said Sara Slane, the AGA’s senior vice president of public affairs. “High tax rates hinder the legal market’s ability to compete with shady, illegal operators that don’t pay taxes back to the state.” How the pie will be sliced in Rhode Island Rhode Island sports betting functions under the state’s lottery. Essentially, Twin Rivers casinos function as partners of the state in operating sports betting. IGT serves as the state’s official vendor in administering Rhode Island sports betting and receives a healthy share of revenue in return. Here’s how Rhode Island divvies up sports betting revenue: Put simply, for every $100 in sports betting revenue, Twin Rivers keeps $17 while Rhode Island grabs $51. While it does not have this designation, that essentially means Rhode Island set a 51 percent effective tax rate on sports betting revenue. The first state in the post- PASPA landscape to start up single-game wagering, Delaware sports betting also calls its system revenue-sharing.

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