Hello and welcome to iGB’s State of the Union. Here you will find a summary of the most important sports betting news we have covered in the past week, as well as briefs about other stories that we thought were interesting.
NJ Senator proposes an increase in online gambling tax
New Jersey senator John McKeon filed a proposal to increase taxation on digital betting and online casinos. Sports betting platforms and online casinos pay 15% of their gross gaming revenues in state taxes, whereas the tax on online casinos is only 13%. It is a single line bill that does not contain an effective date, nor any argument to support the change.
New Jersey’s law mandates that sportsbooks and online casinos be tied to physical locations such as casinos or horse racing tracks. Currently, there are 30 digital sportsbooks and 18 online casinos.
Sportsbook operators prefer a tax of less than 10%. New Jersey would become one of least favourable states to conduct business if it imposed a 30% tax on all sports betting.
Nine of the 40 US states that allow legal online betting have tax rates of around 15%. Three of these nine are in states where the lottery regulates the industry. Ohio Governor Mike DeWine led the charge last summer to double Ohio’s tax on gambling, from 10% up to 20%.
North Carolina is a hotbed for wagering platforms
North Carolinians have welcomed digital sports betting as well as the NCAA Men’s Basketball Tournament by betting $198.1m during the first week. This coincided with March Madness.
The North Carolina Lottery’s sports betting department revealed that during the first week of the year, betting platforms generated gross wagering revenues of $42.7m and collected $7.7m from the state in taxes.
Sterl Carpenter, deputy executive director of compliance and sports betting in North Carolina, said: “I believe people enjoyed the option to bet on sports.”
Duke, North Carolina, and NC State made it to the Sweet 16 and the 64-team field. However the number one seed North Carolina lost 89 to 87 to Alabama in the fourth seed. NC State is still the top seed in this tournament. GeoComply reported that 5.4 millions location checks were performed in the 48-hour period immediately following live betting.
MGC limits sports betting sites
The Massachusetts Gaming Commission held a meeting the day after a Wall Street Journal article on credit cards and VIP customers was published on the 27th of March. This story explored how sportsbooks target VIPs, as well as those at high risk.
Eileen O’Brien, the Commissioner of Massachusetts’ Department of Consumer Affairs and Eileen O’Brien herself said they would also like to know what information any Massachusetts sports betting platform provided US Senator Richard Blumenthal who asked for it. Blumenthal also sponsors the GRIT Act which redirects 50 percent of federal excise taxes on sportsbooks to gambling problem programs.
Boston Herald reports that a consortium of public and private organizations in Massachusetts announced this week it would begin exploring ways to increase awareness on how gambling can be harmful to young people, as well as the associated risks.
According to a release by the office of Attorney General Andrea Campbell, “the ultimate goal is to develop an evidence-based health, education and training curriculum for middle-school, high-school and college-aged students.”
Sports betting and athletes
NICG to welcome two new members
The US Department of the Interior’s Deb Haaland, announced the appointment of Sharon Avery as an associate commissioner for the National Indian Gaming Commission. This commission supports the economic and social development of Indian tribes.
Avery is a Saginaw Chippewa from Michigan and Hovland is a Flandreau Sioux member in South Dakota. Both are vice chairs of the NIGC. After a 30 day public comment period the appointments will be final.
Sequoyah SIMERMEY, the NIGC’s chairman, abruptly resigned in February. He was then introduced less than a month later as a Vice-President of Strategic Partnerships at FanDuel.
NCAA proposes to ban prop bets on college athletes
ICYMI for iGB
Georgia legislators fail to legalise sport betting at the close of session
What comes next after the DC sports betting catastrophe?
FanDuel is the driving force behind Flutter’s “tremendous” North American success
IGA Executive Director: Tribes to drive California betting
Ohtani: I never “willfully wired” money or bet to a bookie
Downstate NY Casino License Decision not Expected until 2025
