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Darren Rovell, who has covered sports betting for 20 years and reports for the Action Network, a gaming news and data company, is amused by the about-face by sports leagues. “Five years ago, the leagues were opposed to gambling,” he says. “You see how quickly they did a 180-degree turn. They can see the situation down the road.”
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We now have two nickels and three pennies, which constitute our increase via gross gaming revenue (GGR). Then the deductions begin, most notably in the form of state taxes, which vary from state to state, and supplier fees. Thus, our net gaming revenue (NGR) will be lower, perhaps notably so, compared to our GGR. If our company is catering to a state like Pennsylvania, that 36% tax rate for sports betting, 54% tax rate for slots, and 16% tax rate for table games will sting. If it is in New Jersey, the 15% rate is less “taxing.”
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