jackson brainerd ncsl fiscal analysts seminar · betting revenues, 14.25 percent of racetrack run...
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Sports Betting Legalization LandscapeJackson Brainerd
NCSL Fiscal Analysts Seminar
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Murphy v. NCAA: Sports Betting Moves Forward
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Grandfathered by PASPA,
Not Offering Sports Betting
Offering Sports Betting
2018 Legislation Pending
2018 Legislation Failed
2018 Legislation Enacted
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Policy Concerns
Regulatory Authority
Authorized Operators and Platforms
Administrative Costs
Betting-Eligible Events
Age Limits
Tribal-State Compacts
Gambling Addiction
Online/Mobile Betting
Integrity Fees
Tax Rates
Revenue Impact
Revenue Use
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College Sports?
Yes: Delaware, Mississippi, Nevada, Pennsylvania, West Virginia
Yes, but only on out-of-state colleges/events: New Jersey, Rhode Island
No: New York
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Tribal Gaming Industry Concerns
Tribal Gaming (28)
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Mobile Betting and Kids These Days…
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Integrity Fees
NFL
NBA
MLB
NHL
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How Sportsbooks Make Money
$100
+$10 (vig)
$110
$100
+$10 (vig)
$110
$220 $210 to winner$10 profit
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Tax Rates
State Tax Rates
Delaware State receives 50 percent of total win
Mississippi 12 percent gaming tax (8% state/4% local)
New Jersey 8.5 percent of gross sports pool revenues, 14.25 percent of casino-run online sports
betting revenues, 14.25 percent of racetrack run online sports betting revenues.
Nevada 6.75 percent of gross revenue of licensee
Pennsylvania 34 percent tax with a 2 percent local assessment
Rhode Island 51 percent of sports wagering revenue
West Virginia 10 percent of licensee’s adjusted gross sports wagering receipts
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Cannibalization Illustrated
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Casino Revenue for Selective Neighboring States
(In thousands)
New Jersey
Pennsylvania
Indiana
Ohio
Source: UNLV Center for Gaming Research
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Nevada Sports Betting Revenue
Total Gaming
Sports Betting
2017 Gaming Revenues After Paying Winners
Gaming Revenues After Paying Winners
$11,571,114,000
$248,777,000
Source: UNLV Center for Gaming Research
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Sports Betting Contributions to State Funds
State Dedication of Proceeds
Delaware General Fund
Mississippi Casino gaming tax revenue is allocated to the General Fund, with $3 million distributed to a
separate state highway construction fund monthly
New Jersey Casino Revenue Fund, General Fund, Atlantic City Marketing/Promotion
Nevada Gaming revenue goes to gaming funds in state aid education, local government, the state
General Fund, and problem gambling
Pennsylvania General Fund
Rhode Island General Fund
West Virginia First $15 million to the Lottery Fund, additional revenue directed to the Public Employees
Insurance Agency Financial Stability Fund
*Proposed Legislation
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Gambling Addiction Services/Awareness
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Federal Preemption?