Every online gaming professional needs to be aware of the aftermath of a Post PASPA world. In this post we’ll discuss the implications and focus on three key states where new and up and coming entrepreneurs could deploy their next online sports book.
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The United States overturned a federal, nationwide ban on sports betting in the landmark repeal of PASPA in 2018. Since then, practically every state in the union has been scrambling to get legislation on the books to regulate and tax sports betting.
With the rise of mobile gaming and ubiquitous Internet access, does it make sense to have a piece-meal, state-by-state mishmash of legislation? Or should the federal government step in with unified regulations for nationwide sports betting? Legislation is nonetheless maturing and moving forward in three key states.
California is the state with the largest population in the United States. The Golden State, as it is known, is home to 19 major professional sports teams. Regulating and taxing sports betting — land-based and online — is estimated to generate $2.5 billion in revenue per year for the state.
However lawmakers are usually not on the same page, and conflicting interests have in the past stymied attempts to pass laws regulating gaming. Since gambling laws relate to state taxes, any attempt at passing them needs a super-majority of 2/3ds of the vote in the state congress. This is an incredibly difficult feat.
The other side of the story is the position of the state tribal casinos and operators, who have no incentive to see statewide legislation pass legalising sports betting outside their own operations. Each year California has seen some sort of attempt at getting gaming regulations passed, but each year it has failed. Let’s see if 2020 is any different.
You may already know that Kentucky is home to the famous Kentucky Derby, probably the most storied horse racing track in the world.
But did you know that after the recent inauguration of Kentucky Governor Andy Beshear, he promoted a push to raise funding for the state education budget through taxing sports betting?
A commitment to the future also requires that we create the new revenue to meet the growing needs of our state. And right now, we are watching more than $500 million in gaming revenue go across the border to states like Indiana, Ohio, and Illinois. It is time to stop that flow,” Governor Beshear said.
The initiative House Bill 137 would aim to fund state education coffers by taxing sports betting and casinos, which would ultimately provide the state’s 42,000 teachers a $2,000 raise.
When you think about Vermont, you may think of green pastures, autumn leaves turning yellow, red, and auburn, and maybe even this guy.
We bet that you don’t think about Vermont as the next mobile gaming hotspot in America. Well that’s changing very quickly with S.213 this month, an act related to sports wagering which would establish a licensing and regulation framework for mobile sports betting.
In Vermont, there are no tribal casino or betting interests (who often have a monopoly on legal wagering) to combat the passage of such a bill.
S.213 would make it accessible for new and up and coming entrepreneurs to set up shop in Vermont:
S.213 can offer operating licenses for $10,000. Gross gaming revenues (GGR) would be taxed at 10 percent, and if a book loses in any given month, those losses can be used against future tax payments.
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