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It's been a great start to the New York sports betting sector with $302M in tax revenue recorded. But should anyone really be shocked? Speaking with our own Thomas Somach, revered gaming attorney I. Nelson Rose suggested that the actual tax for sports betting in New York could be as high as 71%.
That comes as a result of a federal excise tax of 0.25%.
"This may not sound like a lot but it is when you consider each bet," Rose points out to Mr. Somach. "This is win or lose and not on gross gaming revenue. That amounts to another 6%. So a 65% rate becomes 71%."
The high taxes will be passed onto gamblers, if they haven't already. BetMGM this past week announced it would be eliminating welcome bonuses, at least temporarily.
That tax rate will also be passed down in the form of bloated lines and reduced bonus offers, not to manage the relative lack of competition considering the population of this state (4th largest in the U.S.). Only nine mobile sportsbooks are permitted with Bally's becoming the ninth and final site this past Thursday.
All the money goes towards education, grants for youth sports programming and prevention treatment, and recovery services for problem gambling.
Bally Bet, New York's ninth and final mobile wagering operator, started taking bets Thursday.
- Gilbert Horowitz, Gambling911.com
