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5 Pieces Of Advice For States Considering The Legalization of Sports Betting

Darren Heitner During the same conference, Station Casinos' vice president of sportsbooks Art Manteris summarized the situation as one where the leagues are demanding a percentage in exchange for integrity and asked, "So if they don't get paid, will they not provide integrity?" 4. Do not be greedy when it comes to taxation. The money that New Jersey will gain to supplement its state budget is nothing to scoff at, but it will also not be the vast riches that many are anticipating. Further, a small change in the size of the taxes applied to wagers will have a much more negative effect on the betting population than a positive effect for the states that apply the enhanced taxation formula. It will become clear that a state invoking a high tax rate will make many of the larger sports bettors stick with the existing black markets as opposed to migrating to the newly created legal markets. "The legal market in Pennsylvania is going to be small compared to the black market," says Asher. Pennsylvania is looking at implementing a whopping 36% tax on sports betting revenue. This could be devastating for trying to solicit those who seek to bet the most. The ideal tax rate is in the 15-20% range, says Carter.

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