Chapter
The Push-Pull Between Government Tax Rates and Sportsbook Profitability
21:34 - 25:46 (04:11)
New York's sports betting tax rate is set at 50% -- the highest in the country -- but this didn't scare away gambling companies, and instead inspired other states to consider higher tax rates as well. While some argue that these tax rates are too high for the industry to maintain profitability, others see it as a necessary trade-off for the state to benefit from the revenue.
Clips
After legalizing sports betting with a proposed 20% tax rate, Kansas allowed gambling companies to deduct promotional bets from their taxes.
21:34 - 23:28 (01:53)
Summary
After legalizing sports betting with a proposed 20% tax rate, Kansas allowed gambling companies to deduct promotional bets from their taxes. Once $350 million worth of bets were placed by Kansans, they expected to earn significant tax revenue.
ChapterThe Push-Pull Between Government Tax Rates and Sportsbook Profitability
EpisodeHow Sports Betting Hit the Mainstream in America
PodcastThe Daily
Despite warnings from the industry, New York's high tax rates on sports betting have not scared off companies and the industry is flourishing, potentially serving as a model for other states.
23:28 - 25:46 (02:18)
Summary
Despite warnings from the industry, New York's high tax rates on sports betting have not scared off companies and the industry is flourishing, potentially serving as a model for other states. However, many in the industry argue that such high tax rates make it difficult to do business.