$1.6B Has Been Taxed By Sports Betting, Where Is That Money

$1.6B Has Been Taxed By Sports Betting, Where Is That Money?

States like Colorado have explicit instructions on where sports betting taxes go.
Other states just link all sports betting taxes to their general fund.
This includes funding for education programs, infrastructure, and problem gambling help.

LAS VEGAS – Since the repeal of PASPA in 2018, $1.6 billion has gone to local governments from sports betting taxes.

Some states report tax benefits to their general fund – giving them the ability to spend it anywhere. Most look to educational programs, neighborhood help, or infrastructure.

New York for example has reported $390 million in sports betting taxes. At the nation’s highest tax rate (51%), education is well taken care of. 98% of taxes go to elementary schools and youth sports programs.

In Virginia, the majority of sports betting taxes go to their general fund. Recently, the method for taxing Virginia sportsbooks changed. This permits them to take in more money without sportsbooks removing promos.

A More Dedicated Approach

Some states with legal sports betting are specific with where sports betting taxes go. Even one of the California sports betting ballots, Prop 27, explain the funding benefits.

Aside from technology to prevent minors from betting, the taxes will mostly go toward homelessness. Between services, affordable housing, and mental health programs, 85% of California sportsbook taxes will fund this area.

Likewise, states across the US have explicitly laid out what the benefits from sports betting are.

Colorado – Funds the implementation of the state water plan and other public purposes.
DC – A share to the Birth-to-Three for All DC Amendment Act of 2018
Mississippi – $3 million to a state highway construction fund.
Montana – Excess of $12.4 million to STEM scholarship fund.

As more states approve sportsbook regulations, the amount of money earned per year will increase as well. Moving forward, Massachusetts sportsbooks show estimates of a year’s worth of taxes at $35 million.

In the iGaming sector, taxes accumulated to almost $1 billion last year. Between casino gambling and sports betting, the benefits are proving themselves.

News tags: California | Colorado | Massachusetts | Mississippi | Montana | New York | Virginia | Washington DC

Michael Molter

Michael began writing as an NBA content writer and has spent time scouting college basketball for Florida State University under Leonard Hamilton and the University of Alabama under Anthony Grant. A graduate of both schools, he covers topics focused on legal sports betting bills, sports betting revenue data, tennis betting odds, and sportsbook reviews. Michael likes to play basketball, hike, and kayak when not glued to the TV watching midlevel tennis matches.

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Author: Jeffrey Fisher