Will 34 percent Pennsylvania tax stymie sports betting?

Will 34 percent Pennsylvania tax stymie sports betting?

May 18, 2018 8:03 PM
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True or false? Pennsylvania will be one of the first states in which residents can place sports bets legally. The answer would seem to be a slam-dunk “true.”

After all, the Keystone State passed a law making sports betting legal in 2017 pending a change in federal law and on Monday, the Supreme Court struck down the Professional and Amateur Sports Protection Act, thereby removing the last stipulation for Pennsylvania’s law to take effect. In fact, the head of the state’s gaming commission says that while the state won’t have sports betting as quickly as neighboring New Jersey or Delaware, Pennsylvanians should count on being able to place wagers sooner than later. But that could be wishful thinking.

Pennsylvania lawmakers certainly got ahead of the curve on sports betting by passing a law that went into effect immediately after the Supreme Court decision. But exactly what that law says may keep potential gaming operators from offering sports betting in Pennsylvania. The law, which came before the professional leagues began lobbying states for an integrity fee, calls for a $10 million application fee and a 34 percent tax on gross sports wagering revenue. The application fee is 100 times higher than the $100,000 West Virginia application fee. And the tax rate is five times the current 6.75 percent in Nevada and nearly 3.5 times as much as the 10 percent included in the new West Virginia law.

Check out sportshandle.com for the full article.