Tax Archives - Keno Wizard https://kenowizard.com/tag/tax/ The Ultimate Keno Destination for Odds, Tips & Tricks Fri, 17 May 2024 10:57:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://i0.wp.com/kenowizard.com/wp-content/uploads/2023/02/cropped-keno-wizard-icon.png?fit=32%2C32&ssl=1 Tax Archives - Keno Wizard https://kenowizard.com/tag/tax/ 32 32 230792155 Netherlands to Increase Gambling Tax to 37.8% Amid Slot Ban Controversy https://kenowizard.com/2024/05/17/netherlands-to-increase-gambling-tax-to-37-8-amid-slot-ban-controversy/ https://kenowizard.com/2024/05/17/netherlands-to-increase-gambling-tax-to-37-8-amid-slot-ban-controversy/#respond Fri, 17 May 2024 10:57:09 +0000 https://kenowizard.com/2024/05/17/netherlands-to-increase-gambling-tax-to-37-8-amid-slot-ban-controversy/ As reported by CasinoNieuws.nl, the Netherlands is set to alter its gambling tax rate from 30.5% to 37.8%, should the latest coalition agreement be implemented. This change is expected to provide the state treasury with an additional €202 million (£173.3m/$219.6m) annually in gambling tax contributions. The agreement involves the PVV, VVD, NSC, and BBB parties. In [...]

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netherlands__coalition_agreement_proposes_increased_gambling_tax_of_37_8pctAs reported by CasinoNieuws.nl, the Netherlands is set to alter its gambling tax rate from 30.5% to 37.8%, should the latest coalition agreement be implemented.

This change is expected to provide the state treasury with an additional €202 million (£173.3m/$219.6m) annually in gambling tax contributions. The agreement involves the PVV, VVD, NSC, and BBB parties.

In November, seven political parties announced their goal to generate an additional €200 million to €400 million in state contributions through an increased gambling tax. The coalition agreement, titled “Hope, Courage and Pride,” is scheduled to be presented today (16 May).

Tax Increase Amid Online Slot Ban Controversy

The proposal to raise the gambling tax comes on the heels of the Netherlands’ house of representatives voting to ban online gambling advertising and “high-risk” gambling, which includes online slots. The house voted to ban all targeted advertising, having already prohibited untargeted advertising. This new ban, effective from July 2023, encompasses mass advertising through television, radio, and sports sponsorships.

Additionally, the house voted for a ban on online slots due to concerns over the lack of player control in such games. These motions were put forward by Socialist party MP Michiel van Nispen. Although the bans have passed a house vote, the Netherlands’ minister for legal protection, Franc Weerwind, will review the law and decide whether to approve the changes.

Industry Opposition to Proposed Bans

The proposed changes have faced significant opposition from the industry. The Netherlands Online Gambling Association (NOGA) argues that these bans would push players towards the black market. NOGA described the proposed changes as “thoughtless and irresponsible,” with its director, Peter-Paul de Goeij, expressing concerns that the motions are based on inaccurate data.

“A majority in the house of representatives is taking an expensive gamble with online players who are now consciously opting for the legal offer,” said De Goeij. “If we soon find that politicians have made the wrong decisions too hastily, the house will be responsible for the negative consequences.”

Implications for the Dutch Gambling Market

The increased tax rate and the new regulations reflect the Dutch government’s attempt to regulate the gambling market more stringently. While the tax increase aims to boost state revenue, the advertising and slot bans are intended to mitigate the risks associated with gambling. However, the controversy and opposition suggest that the road to implementing these changes may be fraught with challenges.

As the situation develops, the Dutch gambling industry will closely watch the minister for legal protection’s decisions, which will significantly impact operators and players alike. The balance between regulation and maintaining a healthy market will be crucial for the future of the Dutch gambling landscape.

Source: “Netherlands coalition agreement proposes increased gambling tax of 37.8%”. igamingbusiness.com. May 16, 2024.

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Major Tax Hike for Online Gambling Proposed in New Jersey https://kenowizard.com/2024/04/15/major-tax-hike-for-online-gambling-proposed-in-new-jersey/ https://kenowizard.com/2024/04/15/major-tax-hike-for-online-gambling-proposed-in-new-jersey/#respond Mon, 15 Apr 2024 13:52:25 +0000 https://kenowizard.com/2024/04/15/major-tax-hike-for-online-gambling-proposed-in-new-jersey/ John McKeon, a senator in the State of New Jersey, has introduced a new bill which proposes a significant increase in the tax rate for online gambling and sports betting, bringing the figure to 30 percent. The current tax rate for online gambling in New Jersey is 15 percent of gross gaming revenue, while the [...]

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new_jersey_senator_introduces_bill_to_increase_online_gambling_tax_by_30pctJohn McKeon, a senator in the State of New Jersey, has introduced a new bill which proposes a significant increase in the tax rate for online gambling and sports betting, bringing the figure to 30 percent.

The current tax rate for online gambling in New Jersey is 15 percent of gross gaming revenue, while the tax rate for sports betting is 13 percent of gross gaming revenue. The new bill, which bears the name of “Senate Bill 3064”, was filed two weeks ago and then formally introduced on 8 April. After that the bill was referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

The new bill basically amends two sections of the current legislation, Section 7 and Section 17, which stipulate the tax amount for sports wagering and online gambling, respectively. The proposal would take effect on the next 1 January that comes after the day of approval.

Still Lower Than Other States

The 30 percent tax rate would represent a drastic increase from the current rate in New Jersey, but it would still be lower than the tax rates established in other American states for online gambling and sports wagering.

New York for instance has a tax rate of 51 percent for sports betting, the highest in any competitive market in the United States. Pennsylvania comes in second place with a tax rate of 36 percent of gross gaming revenue.

States such as Delaware, New Hampshire and Rhode Island have tax rates above 50 percent of gross gaming revenue, but these states still run monopolies through state lotteries and don’t have competitive markets.

The current tax rate for online gambling in New Jersey is among the lowest in the country, with the state having 30 iGaming websites currently licensed and active on its competitive market. Connecticut has an 18 percent tax rate for online casinos, which is set to rise to 20 percent after five years, Michigan has a tax rate of 20 percent, while West Virginia takes 15 percent of gross gaming revenue from its online casinos.

The highest tax rate in the business remains the 54 percent imposed in Pennsylvania for slots, but that state seems to favor table games which have a tax rate of just 16 percent.

Ohio is an example of an American state that has recently increased its tax rate for online gambling and sports betting. In July 2023 Mike DeWine, the governor of Ohio, increased the tax rate from 10 percent to 20 percent.

Source: “New Jersey senator formally introduces bill to hike online tax to 30%“. iGaming Business. April 11, 2024.

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New Jersey Court Reexamines Casino Property Tax Amendments https://kenowizard.com/2024/03/22/new-jersey-court-reexamines-casino-property-tax-amendments/ https://kenowizard.com/2024/03/22/new-jersey-court-reexamines-casino-property-tax-amendments/#respond Fri, 22 Mar 2024 08:22:17 +0000 https://kenowizard.com/2024/03/22/new-jersey-court-reexamines-casino-property-tax-amendments/ A New Jersey Appellate Court panel recently heard arguments in two cases concerning amendments to the state governing how much money casinos pay in lieu of property taxes. The cases, brought by Atlantic County and the nonprofit Liberty and Prosperity, revolve around changes made in 2021 that excluded internet gaming and online sports betting revenues [...]

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A New Jersey Appellate Court panel recently heard arguments in two cases concerning amendments to the state governing how much money casinos pay in lieu of property taxes. The cases, brought by Atlantic County and the nonprofit Liberty and Prosperity, revolve around changes made in 2021 that excluded internet gaming and online sports betting revenues from the calculations of casino payments.

The State Argues Casinos Require Special Treatment

In Superior Court in 2022, Atlantic County and Liberty and Prosperity prevailed in their lawsuits, contending that the amendments violated a 2018 consent agreement and the state Constitution. They argued that the changes resulted in a loss of approximately $5 million per year for county taxpayers, benefiting an industry detrimental to public health.

Despite the initial victory, the New Jersey Attorney General’s Office argued in favor of the amendments, emphasizing the need for changes to ensure a predictable revenue stream for casino taxes and to prevent potentially ruinous tax hikes. During the appellate court hearing, Tim Sheehan, representing the state, argued that the amendments were necessary to safeguard the financial stability of casinos and prevent closures.

The Legislature acted to exclude internet gaming and (online) sports gaming revenues … to ensure casino taxes continued in a predictable revenue stream.

Tim Sheehan, New Jersey Attorney General’s Office representative

Sheehan highlighted the rationale behind the amendments, citing concerns that a significant portion of internet gaming and online sports betting revenues went to third parties rather than the casinos themselves. He added the amendments were vital to avoid potential tax hikes, which could be disastrous for the broader sector and damage a leading contributor to the local economy.

The Amendments May Just Spread the Financial Burden

Despite the state’s concerns, Appellate Judge Francis J. Vernoia questioned whether the amendments effectively rescued casinos from ill-conceived business deals at the expense of other property owners. Seth Grossman of Liberty & Prosperity echoed this sentiment, arguing that the burden had unfairly shifted from casinos to non-casino property owners, adding the gambling sector did not need such a safety net.

So the amendment was to make sure the casinos kept more of the money? Aren’t we just rescuing a bad business deal?

Appellate Judge Francis J. Vernoia

The crux of the dispute revolves around whether the amendments violated the terms of the 2018 consent agreement and encroached upon judicial authority. While Sheehan contended that the Legislature had the authority to change laws at any time, Ronald Riccio, representing Atlantic County, argued that such changes cannot alter court orders.

The outcome of the appellate court’s decision is eagerly awaited, with Riccio acknowledging the unpredictability of judicial rulings based on judges’ questions during the hearing. The court should settle on a decision in the coming weeks, potentially impacting the tax obligations of New Jersey casinos and other property owners.

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Bill in Iowa Proposes Reduction of Tax Rate for Land-Based Casinos https://kenowizard.com/2024/02/28/bill-in-iowa-proposes-reduction-of-tax-rate-for-land-based-casinos/ https://kenowizard.com/2024/02/28/bill-in-iowa-proposes-reduction-of-tax-rate-for-land-based-casinos/#respond Wed, 28 Feb 2024 02:34:30 +0000 https://kenowizard.com/2024/02/28/bill-in-iowa-proposes-reduction-of-tax-rate-for-land-based-casinos/ Iowa is one of the US states that currently offers not only legal sports betting but casino gambling as well. The state currently offers legal retail and online betting on sports, as well as casino gambling via 19 brick-and-mortar casinos. The tax rate applicable for sports betting is set at 6.75% on sports betting revenue, [...]

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Iowa is one of the US states that currently offers not only legal sports betting but casino gambling as well. The state currently offers legal retail and online betting on sports, as well as casino gambling via 19 brick-and-mortar casinos. The tax rate applicable for sports betting is set at 6.75% on sports betting revenue, while casinos that generate a minimum of $3 million in gross revenue pay a 22% tax rate on their gross gambling revenues.

Amid the growing competition from casinos in nearby states, lawmakers in Iowa are exploring options for the gradual reduction of the tax rate applicable for land-based casinos. One such effort is led by Rep. Jane Bloomingdale, who filed House Study Bill 719 earlier this month. The proposal, calls for a slight decrease in the rate applicable for casino operators.

Under House Study Bill 719, the 22% tax rate for land-based casinos will decrease by a percentage per fiscal year. This process, under the proposed bill, will continue through the fiscal 2027 year, when the tax rate for retail casinos will be reduced to 19% on gross gaming revenues. The aforementioned proposal comes at a time when the state Governor anticipates tax cuts on the income of Iowa residents.

Ultimately, the slight reduction in the taxes for casinos seeks to make them more competitive amid the growing competition from nearby states. For example, nearby casinos in Illinois and Nebraska may gain an advantage against Iowa and attract visitors considering their lower tax rate.

Casinos Provide Vital Economic Stimulus for Local Communities

Bloomingdale, who was recently quoted by Iowa Capital Dispatch, revealed that casinos across Iowa have helped local communities. This economic stimulus, she said, helped by providing vital resources. “Every fire department has a new fire truck, every church has a new roof, every cemetery has tombstones that have been fixed, on a paved road. So I look at the things that they’ve (casinos) done in our communities that, you know, if they have 1% more income, that money would go directly into our communities,” added Bloomingdale.

Additionally, she spoke about the importance of tax cuts, acknowledging that lawmakers are considering lower taxes for corporations and individuals but not casinos. “It just doesn’t seem fair,” Bloomingdale added, pointing out that if Iowa considers lowering taxes the state should “look at everyone.”

Bloomingdale’s proposal gained traction by securing approval from a House Ways and Means subcommittee on Monday.

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Lawmakers Support Raising Tax Threshold on Slot Winnings https://kenowizard.com/2024/02/16/lawmakers-support-raising-tax-threshold-on-slot-winnings/ https://kenowizard.com/2024/02/16/lawmakers-support-raising-tax-threshold-on-slot-winnings/#respond Fri, 16 Feb 2024 10:09:38 +0000 https://kenowizard.com/2024/02/16/lawmakers-support-raising-tax-threshold-on-slot-winnings/ For nearly a decade, lawmakers such as Rep. Dina Titus have continuously urged the Internal Revenue Service (IRS) to raise the existing threshold on slot winnings that require a W-2G tax form. The current regulation requires anyone with winnings of $1,200 or more to submit a W-2G tax form. This policy was established back in [...]

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For nearly a decade, lawmakers such as Rep. Dina Titus have continuously urged the Internal Revenue Service (IRS) to raise the existing threshold on slot winnings that require a W-2G tax form. The current regulation requires anyone with winnings of $1,200 or more to submit a W-2G tax form. This policy was established back in 1977, a time when Nevada was the only state where gambling was available.

But much has changed since then, including the statewide expansion of casino gambling via commercial and tribal operators across the United States. As a result, the existing regulation creates a burden not only for the IRS but for casino operators and their players, Titus said.

Titus, along with Rep. Guy Reschenthaler introduced the Shifting Limits on Thresholds Act, a legislative proposal that called to update the tax threshold for slot winnings, increasing it from $1,200 to $5,000. The proposal marked the latest effort of lawmakers to increase the threshold, updating the policy.

In November, the IRS Advisory Council (IRSAC) supported the proposed change to raise the tax threshold on slot winnings. It suggested the threshold for the required W-2G tax form to be raised to $5,800, which is even higher than the Representatives’ proposal. Considering this support, Titus and Reschenthaler urged the IRS once again to update the policy earlier this month.

In a recent interview for the Nevada Independent, Titus revealed that the policy update can be completed via a change in the regulations without a requirement for legislation. She encouraged Danny Werfel, IRS’ commissioner, to follow the recommendation of the IRS Advisory Council. Rep. Titus explained that it looks like the proposed legislation helped push forward the whole process.

AGA Supports the Proposed Change

The proposed change is important as it will reduce the burden on the customers and the gambling industry. What’s more, the IRS will have much fewer W-2G tax forms to process, considering the potential raising of the threshold. The American Gaming Association (AGA), the premier national trade group for the US casino industry, also showed support for the proposed change.

The antiquated slot tax threshold creates unnecessary burdens for consumers, casino operators and the IRS.

Bill Miller, CEO of the American Gaming Association

AGA’s CEO, Bill Miller, called the current policy “antiquated,” saying that it brings unnecessary burdens for the IRS, the consumers and the casino industry. “The AGA commends Representatives Reschenthaler and Titus and other Congressional leaders for their dedicated efforts to modernize this long-outdated policy and join them in urging Commissioner Werfel to raise the threshold,” he explained.

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Federal Handle Tax Bill Sparks Industry Controversy https://kenowizard.com/2024/01/16/federal-handle-tax-bill-sparks-industry-controversy/ https://kenowizard.com/2024/01/16/federal-handle-tax-bill-sparks-industry-controversy/#respond Tue, 16 Jan 2024 09:36:32 +0000 https://kenowizard.com/2024/01/16/federal-handle-tax-bill-sparks-industry-controversy/ In the 1950s, a federal excise tax on sports wagers was implemented as a method to fight against illegal gambling. The tax, which is 0.0025% of every sports wager has remained in place since, despite efforts of lawmakers against it. While at the time, only Nevada was affected by the tax, this is not the [...]

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In the 1950s, a federal excise tax on sports wagers was implemented as a method to fight against illegal gambling. The tax, which is 0.0025% of every sports wager has remained in place since, despite efforts of lawmakers against it. While at the time, only Nevada was affected by the tax, this is not the case at present.

Now, a newly introduced legislation, supported by Sen. Richard Blumenthal and Rep. Andrea Salinas, proposes to use the money raised from the federal excise tax on sports betting to develop a new fund that will help with research, treatment and prevention of gambling addiction.

Per the new proposal, labeled as the “Gambling Addiction, Recovery, Investment, and Treatment Act,” some 50% of the tax, which is often referred to as the handle tax, would be used for funding the initiative.

As announced by the Nevada Independent, Salinas and Blumenthal released a joint statement, highlighting the importance of dedicating more funds toward research, treatment and prevention of gambling harm across the country. “The growing legalization of sports and online betting, paired with the ability to place bets from your phone whenever you want have created a perfect storm for gambling addiction,” explained Blumenthal. Additionally, he said: “Dedicated federal resources to tackle problem gambling head-on will provide much-needed support, resources and treatment for those suffering from gambling addiction.”

According to Salinas and Blumenthal, the new proposal is supported by the National Council on Problem Gambling (NCPG). The duo confirmed that the proposed bill also enjoys approval from problem gambling councils in Connecticut and Oregon.

Not Everyone Agrees with the Proposed Handle Tax Bill

The proposed legislation about the handle tax surely surprised Rep. Dina Titus, one of the long-term opponents of the tax. For 10 years, she has been trying to repeal the federal excise tax on sports betting, deeming it “redundant.” On Friday, Titus supported her position that the federal excise tax isn’t needed considering that states that have legalized sports betting already dedicate resources toward fighting problem gambling.

Nearly every tax dollar earmarked for problem gambling services comes from casino gaming taxes, including new legal sports betting and iGaming markets.

Chris Cylke, SVP of the American Gaming Association

Chris Cylke, the American Gaming Association’s senior vice president, shared Rep. Titus’ position. He explained that both legal online gambling and sports betting activities across the country raise money for problem gambling. Additionally, Cylke warned that amid the expansion of legal gambling across the country, the “antiquated” federal excise tax represents a disadvantage for licensed operators and favors the illegal gambling sector, where no license fees or taxes are paid any way.

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Utah Lawmaker Proposes State Lottery to Tackle Senior Property Tax Woes https://kenowizard.com/2024/01/05/utah-lawmaker-proposes-state-lottery-to-tackle-senior-property-tax-woes/ https://kenowizard.com/2024/01/05/utah-lawmaker-proposes-state-lottery-to-tackle-senior-property-tax-woes/#respond Fri, 05 Jan 2024 08:55:44 +0000 https://kenowizard.com/2024/01/05/utah-lawmaker-proposes-state-lottery-to-tackle-senior-property-tax-woes/ In a move to address the escalating property tax concerns of older constituents, Utah Representative Kera Birkeland is championing a proposed constitutional amendment that would legalize the state’s first-ever lottery.  Rep. Birkeland’s Lottery Proposal Could Boost Utah’s Finances by $200M Rep. Birkeland contends that legalizing the lottery could inject up to $200 million into Utah’s [...]

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In a move to address the escalating property tax concerns of older constituents, Utah Representative Kera Birkeland is championing a proposed constitutional amendment that would legalize the state’s first-ever lottery

Rep. Birkeland’s Lottery Proposal Could Boost Utah’s Finances by $200M

Rep. Birkeland contends that legalizing the lottery could inject up to $200 million into Utah’s coffers, money currently flowing across state lines as residents travel to neighboring states like Idaho, Wyoming, and Arizona to purchase lottery tickets. The proposal aims to redirect these funds to alleviate the financial strain on seniors facing rising property taxes, reported KSL.

The lawmaker’s initiative sparks a broader conversation about the intersection of gambling practices, fiscal policies, and the unique challenges posed by Utah’s comprehensive ban on all forms of gambling. Utah and Hawaii are the only states where any game of chance is strictly prohibited.

Birkeland argues that the prohibition on gambling has deprived the state of a significant revenue stream. She emphasizes the real-world impact on seniors, sharing stories of constituents forced to sell their homes due to soaring property tax bills.

While the full details of the bill are yet to be unveiled, Birkeland is considering including a stipulation that mandates tax revenue from lottery sales be dedicated to offsetting the tax burden on older adults with fixed incomes. 

The proposal faces a significant hurdle, as a constitutional amendment requires the support of two-thirds of lawmakers in both chambers and approval by a majority of voters in the upcoming general election.

Gov. Cox Challenges Lotteries, Deems Them Harmful

Gov. Spencer Cox, despite not possessing the authority to veto constitutional amendments, conveyed his opposition in a recent news conference, asserting that he believes lotteries and gambling, in general, function as taxes on individuals who struggle with mathematics, causing more harm than good.

Despite the challenges and opposition, Birkeland is determined to push the bill forward, emphasizing the need to address the primary concern of her constituents regarding property taxes. 

Birkeland recognizes the challenging nature of the endeavor but maintains her determination, asserting that she has introduced several bills attempting to limit property taxes and decrease government spending, yet none of them has gained traction.

The proposal reignites the ongoing debate on gambling laws in Utah, with past endeavors facing significant resistance. Birkeland’s initiative signals a potential shift in the state’s stance on gambling, setting the stage for a contentious legislative session.

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Courts Say Boyd Gaming Is Owed $19M Over Old Tax Disputes https://kenowizard.com/2023/12/15/courts-say-boyd-gaming-is-owed-19m-over-old-tax-disputes/ https://kenowizard.com/2023/12/15/courts-say-boyd-gaming-is-owed-19m-over-old-tax-disputes/#respond Fri, 15 Dec 2023 16:06:11 +0000 https://kenowizard.com/2023/12/15/courts-say-boyd-gaming-is-owed-19m-over-old-tax-disputes/ For years, Sumner County and Boyd Gaming-owned The Kansas Star Casino have been engaged in what appeared to be an endless legal battle regarding how much the property is worth, and, automatically, how much the casino should be taxed.  The repetitive yearly procedure has seen Sumner County appraising the casino at a certain amount, followed [...]

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For years, Sumner County and Boyd Gaming-owned The Kansas Star Casino have been engaged in what appeared to be an endless legal battle regarding how much the property is worth, and, automatically, how much the casino should be taxed

The repetitive yearly procedure has seen Sumner County appraising the casino at a certain amount, followed by Boyd Gaming’s significantly different appraisal and a fight in court over who is right. 

Now, the courts have decided that the operator of the casino located south of Wichita is owed over $19 million in payments over these ongoing tax disputes.

Who Is Going to Pay the Money Back?

According to the courts, the money will be paid back by Sumner County, the school district, and the City of Mulvane where the venue with over 1,300 slot machines and 40+ table games is located. 

Commenting on the decision, Mulvane’s city manager, Austin St. John, called it a “positive” thing, explaining that they can now put an end to the waiting as they now “know what we’re paying.”

St. John further added that, for the upcoming five years, the authorities will have the conviction that their valuation “is going to be correct”.

At the end of the last tax assessment performed by Sumner County, it was ruled that the casino property should be subject to tax at a value of around $190 million. Boyd Gaming filed an appeal, and the courts decided that the value was at roughly $85.5 million.

In 2022, the city of Mulvane decided to raise its mill levy by another eight mills, anticipating the settlement it would have to pay back to the operator.

Boyd Gaming Sued Kansas State in 2022

In May 2022, Boyd Gaming announced it had sued the state of Kansas on claims that, in the context of the newly introduced sports betting laws, the contract signed by the two parties had been violated. 

The contract’s terms read that provided the Sunflower State introduced slot games that resemble the ones featured by Boyd Gaming at Kansas Star Casino, it would have to pay a $25 million fee to the operator.

Besides the state, other defendants in the case included the Kansas Lottery and the Kansas Racing and Gaming Commission.

At the end of October, Boyd Gaming announced a 3% increase in total revenue for the third quarter of 2023, in the context of a slight drop in the year-over-year gaming revenue.

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Kentucky Sees Surge in Tax Revenue from Newly-Launched Gambling Operations https://kenowizard.com/2023/12/11/kentucky-sees-surge-in-tax-revenue-from-newly-launched-gambling-operations/ https://kenowizard.com/2023/12/11/kentucky-sees-surge-in-tax-revenue-from-newly-launched-gambling-operations/#respond Mon, 11 Dec 2023 10:15:20 +0000 https://kenowizard.com/2023/12/11/kentucky-sees-surge-in-tax-revenue-from-newly-launched-gambling-operations/ His years of arguing in favor of legalizing gambling have finally resulted in tangible proof that the Bluegrass State is all the better off for choosing to go down a path that regulates sports wagering. Beating All Expectations and Then Some According to the governor and the state regulator, the first two months of sports [...]

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His years of arguing in favor of legalizing gambling have finally resulted in tangible proof that the Bluegrass State is all the better off for choosing to go down a path that regulates sports wagering.

Beating All Expectations and Then Some

According to the governor and the state regulator, the first two months of sports gambling operation have yielded $8 million in tax revenue for the state. This is a promising number that outlines a brighter future for the industry and one that will most likely beat initial expectations.

According to Gov. Beshear, the initial projections for $23 million in annual revenue may have been underestimated, with the government now looking to rake in far more from sports gambling in terms of tax.

No specific number was cited as there are lull periods throughout the sports betting year, which would mean smaller revenue for the state in certain quarters. Although the industry is fairly new, it came at the right time, as its September launch was just in time for the NFL regular season, the College Football Season, and several other prominent leagues and sports.

According to Gov. Beshear, a total of $656 million had been wagered on sports, with only $26.8 million of this amount going through in-person wagers, and the remainder routed through mobile options. The amounts indicate what was previously a black market that deprived the state of the opportunity to prop up its public purse through a business that was already ongoing.

Of course, a part of this revenue was driven not least because people have become aware that sports gambling exists. In other words, not everyone who has been betting in the past two months has been aware of the offshore gambling market and many have indeed avoided it. Sports gambling was not an easy push in the Bluegrass State either.

Sports Gambling Doing Well, What about Further Expansion

Gov. Beshear has been fighting the good fight for many years, and he has equally tried to introduce online poker, seeing it as another important part of the state’s gambling expansion, and a valuable source of revenue.

Although the current results are encouraging, neither sports gambling nor poker are particularly big drivers of state revenue compared to online casinos, but this is a topic that has not been broached locally.

Of course, there are still issues to address in the market, specifically the lack of sufficient therapists who can help address issues in the market when they arise. Problem gambling will see an increase over the next months, as will Kentucky’s sports gambling revenues. Both are worth paying close attention to.

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BOS: Sweden’s New Gambling Tax Is a Gift to the Black Market https://kenowizard.com/2023/12/08/bos-swedens-new-gambling-tax-is-a-gift-to-the-black-market/ https://kenowizard.com/2023/12/08/bos-swedens-new-gambling-tax-is-a-gift-to-the-black-market/#respond Fri, 08 Dec 2023 22:34:34 +0000 https://kenowizard.com/2023/12/08/bos-swedens-new-gambling-tax-is-a-gift-to-the-black-market/ Sweden’s online gambling association, Branschföreningen för Onlinespel (BOS) is not happy with the government’s plan to increase the gambling tax. According to its general secretary, Gustaf Hoffstedt, this move would be a huge Christmas present to the black market. For reference, Sweden just proposed to raise its gambling tax from 18% to 22%. The new [...]

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Sweden’s online gambling association, Branschföreningen för Onlinespel (BOS) is not happy with the government’s plan to increase the gambling tax. According to its general secretary, Gustaf Hoffstedt, this move would be a huge Christmas present to the black market.

For reference, Sweden just proposed to raise its gambling tax from 18% to 22%. The new tax rate would be applied from July 1, 2024, but is already attracting the industry’s hostility. BOS, which has previously critiqued the government of not understanding the market and its vulnerabilities, expressed its disagreement with the measure.

According to BOS, the new measure will undermine the legal market at a very bad time as more and more players are now playing with black market companies.

Spelinspektionen, Sweden’s gambling regulator, previously said that it doesn’t have firm objections to the measure but highlighted possible repercussions. BOS, on the other hand, scrutinized the Ministry of Finance’s decision, saying that it was counterproductive.

The Ministry of Finance Is Giving a “Christmas Gift” to the Black Market

In an official press release, Hoffstedt said that his team rejected the proposal and slammed the Ministry’s decision.

The government can hardly time its proposal to raise the gambling tax to a worse time. We are in a situation where fewer and fewer players choose to play on the safe licensed market, and more and more on the unregulated, unlicensed gambling market.

Gustaf Hoffstedt, general secretary, BOS

Hoffstedt added that the industry would only benefit the unlicensed market and further undermine the legal operators. He concluded that the proposal was “the best Christmas present” the Ministry of Finance could have given to the black market.

That the government proposes to raise the tax for licensed gambling is the best Christmas present you can think of – to the unregulated and unlicensed gambling market.

Gustaf Hoffstedt, general secretary, BOS

Consumers Misunderstand the Market Too

In other news, BOS recently released a new study, highlighting the public’s misconceptions about the industry. Its findings showed that many players believe problem gambling to be a much more prevalent issue than it actually is. In addition, consumers across the country believe that operators keep most of the players’ money, which is also incorrect.

Hoffstedt highlighted the importance of correcting these misconceptions since they are the reason the public has been okay with tougher gambling regulations. This, he says, is hurting the industry and threatening its health.

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