There is a lot happening in the world of sports betting, which is great. Taxes, record setting revenue and newly approved bills are all part of this new movement and you can find the latest information on all of it below.
1) Ohio Doubles Its Agreed Upon Sports Betting Tax Rate
I don’t think the sports betting operators in the state of Ohio will be popping champagne bottles anytime soon. Why? Because Governor Mike DeWine just doubled the previously agreed upon tax rate of 10% in his budget for 2024/2025. Surprise, surprise!
So, instead of 10%, all Ohio licensed sports betting operators will have to pay 20% starting next year. Known as House Bill 33, the amended budget bill was introduced in the state House earlier this year.
It Has Been a Long Time Coming
Ohio sports betting was meant to be passed back in 2020, but got stuck along the way. Instead, it took another couple of years before Senate Bill 176 was finally approved by the Ohio assembly finance committee in April of 2022.
This allowed operators to open up the doors for business on January 1st this year. Although I’m sure the operators are happy about finally being able to offer legal betting, I doubt they are over the moon by this latest amendment regarding a doubling of taxes.
2) New York Sports Betting Reaches $1 Billion for 10 Consecutive Months
Sports betting in the state of New York has never been more popular. For the past 9 months, the industry has reached the $1 billion handle mark, which is crazy. Would it be able to do it again? You bet!
The month of June proved to be just as hot and reported that the $1 billion was reached once again, making it 10 consecutive months.
Extraordinary Tax Revenue
New York state has a monster 51% tax on sports betting revenues, meaning there is a lot of money coming in. This means that since sports betting apps were approved in January of 2022, it has contributed more than $1.1 billion in taxes. That’s pretty impressive I must say and surely welcomed with open arms.
If you look at the month of June, the tax revenue from New York sports betting was $52.9 million. May actually reported as high as $77.5 million, which is almost $25 million more. However, compared to June last year, it’s still a $16 million increase.
Survival of the Two Fittest
The market is dominated by two companies, DraftKings and FanDuel. These guys are so far ahead of the competition that they make up as much as 80% of the total sports betting market among the two of them. Yes, there are 7 more providers fighting for territory, but so far they have to settle for a mere 20%.
3) Kentucky Sports Betting Launches on September 7th
Finally the people of Kentucky will be able to enjoy legal sports betting or sports gambling rather. This means that the Kentuckians will be ready to go just in time for the NFL to kick off the new season on September 7th, when the Chiefs take on the Lions.
September 7th is the start day for on-location sports gambling. However, for those of you looking forward to placing your bets on your phone, you will have to wait until September 28th. I know it’s annoying, but at least you know it’s coming.
A Much Anticipated New Form of Entertainment
Starting Tuesday, both race tracks and other gaming facilities will be able to apply for a retail sports book permit. Hot spots such as Churchill Downs, Ellis Park, Keeneland, Turfway Park, Red Mile, Derby City Gaming and Mint Gaming have already expressed interest.
Kentucky Governor Andy Beshear is excited about the news and had the following to say during a press conference at Red Mile:
“This is a historic day for our commonwealth – sports wagering will open for the first time in Kentucky in less than 60 days. Bringing sports wagering to the state not only gives Kentuckians a much-anticipated new form of entertainment, but also brings money to the state to support pensions, freeing up money that can be used to build a better Kentucky.”
Let’s Partner Up
According to the new bill, racetracks can partner up with as many as three online operators in addition to operating their own retail sports books. It also allows Kentucky’s horse racing tracks to be licensed as sports betting facilities for a $500,000 upfront fee and an annual renewal cost of $50,000.
“It took a three-fifths majority in the legislature to pass this but I had faith that we could do it, but we couldn’t have done it again without the bipartisan support of so, so many,” said State Rep. Michael Meredith (R-Oakland).
Expecting $23 Million in Tax Revenue
By allowing sports betting, Kentucky will now be able to put the money to good use thanks to tax revenue. The approved bill is estimated to generate about $23 million a year in tax revenue and licensing fees and there are already plans set in motion regarding what to do with the money.
A certain percentage of the revenue will go to a fund that helps combat problem gambling. After that, the revenue would go to the state public pension system.