Inside Asian Gaming

FEBRUARY 2018 INSIDE ASIAN GAMING 29 GAMBLING AND THE LAW T HE US Supreme Court appears to be about to rule that the federal law that prevents states from legalizing sports betting, the Professional and Amateur Sports Protection Act (PASPA), is unconstitutional. There are at least a dozen states that appear ready to enact new laws to introduce or expand legal intra-state wagering on sporting events this year, once the High Court decision is announced. This raises, as always, the question of who will get the money. Indiana Rep. Alan Morrison has introduced a bill that would give the national sports leagues 1% of the new sports betting handle as an “integrity fee.” The sports governing bodies, of course, think this is a great idea. But is imposing a 1% fee on gross gaming wagers in addition to a proposed 9.25% state tax on gaming revenue, on top of the existing 0.25% federal excise tax on “There are at least a dozen states that appear ready to enact new laws to introduce or expand legal intra-state wagering on sporting events this year.” the handle a good idea for operators? In 2008, the State Legislature of Delaware was considering reopening sportsbooks in racinos, which the state was allowed to do, because it had been grandfathered in under PASPA. I was retained as the legal consultant by the Delaware State Lottery, which runs all sports betting, to advise the state on what the tax rate should be on the new sportsbooks. Ipreparedareportandrecommendations. The following is a simplified version of the report’s discussion of the impact of taxes on operators. I follow this with a quick analysis of the Indiana plan, which appears to be spreading across the country. HISTORY In 1954, Congress imposed a 10% federal excise tax on all sports wagers, legal and Sports betting has become big business in Las Vegas