Five complete months have gone by since New York mobile sports betting launched but operators are starting to get uneasy. Mobile sportsbooks are subject to a 51 per cent tax on their gross sports betting revenue, the highest online tax rate in the country. Operators are now asking legislators to review that rate.
According to Bloomberg, operators are cutting back on their marketing and promotional offers amid ongoing losses. Companies like DraftKings and FanDuel are asking legislators to lower taxes after agreeing to them just last year.
The average sports betting tax rate in the US is 19 per cent, according to Morgan Stanley. New Jersey taxes online sports betting at 14.25 per cent, while Pennsylvania taxes at 36 per cent. New York also includes promotional credits given to players in the calculation of taxes.
Joe Addabbo, the New York state senator who chairs the Senate’s Racing, Gaming, and Wagering Committee, has noted that operators were aware of the taxes when they competed for licences last year.
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