Connect with us
European Gaming Congress Milan
SIS

Gambling in the USA

Pennsylvania legislator justified high betting taxes

Niji Narayan

Published

on

Pennsylvania legislator justified high betting taxes
Reading Time: 2 minutes

 

Rep. Robert Matzie,  the Pennsylvania legislator who played a big role in drafting the sports betting legislation of the state, said the number of sports betting applicants and their eagerness to start business justify the high taxes imposed in the legislation.

As per the state’s legislation, the betting companies will have to part with 36 per cent of their earnings as tax. Still, the Pennsylvania Gaming Control Board (PGCB) received sports betting license applications from Hollywood Casino and Parx , committing the $10 million fee.

As far as state is concerned that’s enough to prove that the exorbitant 36 per cent sports betting tax rate is not too high for the market to bear.

Matzieis understandably jubilant: “Since the dominoes have begun to fall with the two filings, I think it’s inevitable the rest will also,”

Matzie was the sponsor of the original legislation that led to state-regulated sports betting in Pennsylvania.

Voters have something to thank him for, but the sports betting companies may not be quite so enthusiastic.

They will be hoping that over time, PA lawmakers will revisit the tax issue and bring taxes into line with those in Nevada (6.75 per cent) or New Jersey (8 per cent in casinos and racetracks, 12 per cent for online sports betting).

Matzie isn’t offering any support for their position: “I thought all along it was a non-starter to open anything up [in terms of the tax rate], and I think this pretty much puts the nail in the coffin.”

Matzie originally had the sports betting tax rate at 18 per cent, the same as the table games rate. After further examination, the rate was simply doubled because sports betting was considered to be more similar to slots, which are taxed at 54 per cent.

Matzie should not be too quick to gloat over casinos paying the high tax rate. The enthusiasm of casinos to apply for sports betting licenses doesn’t mean that the high taxes are workable for them.

If the experience of regulated sports betting in Europe is a guide, then the short-term future does not look good.

After five years of regulated sports betting in France, only three sports betting operators had managed to make a profit in any quarter. France has taxes that are roughly at the same level as Pennsylvania.

Players also react to high taxes.

In France, around 40 per cent of sports bettors ignore the nationally regulated sites to play at unregulated sites which offer better odds. In Portugal, which has taxes set at 16 per cent of sports betting handle, the figure is even worse.

A report from Copenhagen Economics states that only 52 per cent of online gambling in Portugal takes place at nationally regulated sites.

In the UK and Denmark which have 15 per cent and 20 per cent tax rates respectively, only a few per cent of players play at unlicensed sites.

The knock on effect is significant. Copenhagen Economics found that state tax revenues start to reduce when taxes get over 20 per cent.

The 36 per cent rate in Pennsylvania may look good to lawmakers, but state budget accountants would not be as impressed.

 

Source: playpennsylvania.com

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.

Continue Reading
Advertisement
Comments

Gambling in the USA

Tim Wilmott Steps Down as Chairman of AGA

Niji Narayan

Published

on

Tim Wilmott Steps Down as Chairman of AGA
Photo Source: linkedin.com
Reading Time: 1 minute

 

Tim Wilmott has retired from the American Gaming Association as its chairman. The legalisation and expansion of sports betting has been a key marker of Wilmott’s term.

He told AGA members: “Once PASPA happened everything changed,” referring to a Supreme Court ruling that overturned a ban on sports betting. Since then, 13 states so far have launched legalised sports betting operations in casinos, racetracks and on mobile devices.

Wilmott, CEO of casino company Penn National Gaming, said the industry’s relations with the government had become even more important with the advent of sports betting. A bill seeking federal sports betting control is now in the Senate.

Wilmott said that during his tenure and that of his previous chairman, the profile of AGA membership had changed and it had broadened as a result of work headed by CEO Bill Miller and his predecessor.

He was speaking to members at the conclusion of the 2019 G2E trade show that had attracted 30,000 gaming professionals to Las Vegas.

Continue Reading

Compliance Updates

DC Judge Refuses to Halt DC Lottery’s Controversial Deal with Intralot

Niji Narayan

Published

on

DC Judge Refuses to Halt DC Lottery’s Controversial Deal with Intralot
Reading Time: 1 minute

 

DC Superior Court Judge John Campbell has refused to halt the DC Lottery’s controversial deal with tech provider Intralot.

Last month, a different DC judge issued a temporary restraining order on Intralot’s deal based on a request by DC resident Dylan Carragher, a software developer who filed a lawsuit to force DC to hold a competitive tender for the betting contract.

Judge Campbell justified his refusal to honour Carragher’s injunction request by saying he did not think Carragher’s lawsuit will succeed. Campbell added that “it clearly and unquestionably was within the Council’s authority” to waive the competitive bidding requirement. Carragher has already indicated that he will appeal Campbell’s ruling, so the action now shifts to the DC Court of Appeals.

Continue Reading

Gambling in the USA

GAN Reports September 2019 Internet Gambling Growth For Pennsylvania

George Miller

Published

on

GAN Reports September 2019 Internet Gambling Growth For Pennsylvania
Reading Time: 2 minutes

 

GAN plc, an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today updated the market following the publication on October 17, 2019, by the Pennsylvania Gaming Control Board (“PGCB”) of Internet gaming and Internet sports betting financial information for the calendar month of September 2019 in Pennsylvania.

Highlights from the PGCB include:

  • Internet Gaming Win was $6.0 million in September, compared to $4.0 million in the prior sequential month, reflecting an increase of 48.2%.
  • Total Internet Sports Wagering Handle(1) was approximately $153.6 million for the month of September, compared to:

– $83.2 million for the month of August;

– $39.0 million for the month of July; and

– $19.3 million for the month of June.

  • Internet Sports Wagering Gross Revenues(2) (after payouts) for the month of September were $13.4 million, compared to:

– $6.3 million for the month of August;

– $2.9 million for the month of July; and

– $1.4 million for the month of June.

  1. Gross amount of money accepted in wagers
  2. Internet Sports Wagering Gross Revenues may vary from month to month due to the payouts for future events occurring months after the original wager was made and unredeemed winning wagers from prior months will become deductible upon redemption in future months

This information will be updated and published each month, following publication by the PGCB, in order to enable the investor community to readily monitor growth of Internet gambling in Pennsylvania, which remains a key market for GAN.

 

About GAN Plc:

GAN is a leading business-to-business (“B2B”) supplier of internet gambling software-as-a-service solutions (“SaaS”) to the US land-based casino industry. The Company has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses principally to land-based US casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming. The Company has also launched digital user acquisition & retention marketing in support of the Internet Casino (https://casino.winstar.com) provided by GAN’s Digital Marketing Agency in Tel Aviv, Israel.

GAN is listed on the London Stock Exchange (LSE: GAN).

For more information please visit www.GAN.com.

Continue Reading
Advertisement
NSoft

Global Gaming Industry Newsletter – Weekly Digest (sent every Wednesday)

Please select all the ways you would like to hear from European Gaming Media and Events:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here. Read more about European Gaming Media and Event's Privacy Policy and Terms of Service.

Subscribe to our News via Email

Enter your email address to subscribe to our news and receive notifications of new posts by email.

Latest by author

Trending

Notice for AdBlock users

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.