The push to legalize sports betting has gained momentum since the Supreme Court of the United States paved the way for all 50 states to participate. However, there is skepticism about whether the tax revenue generated will be substantial enough to have a significant impact on areas like education, infrastructure, or pension debt.
Several states quickly embraced sports betting following the court’s ruling last spring, challenging Nevada’s longstanding dominance in the industry. Despite the industry being in its early stages of development, the financial returns thus far have been modest. In Nevada, sports betting revenue accounts for barely 0.5% of the state’s total budget.
“Based on current data, it seems unlikely that sports betting will be a financial windfall,” remarked Ohio State Senator John Eklund, a Republican who championed the legalization of sports betting in his state.
Apart from Nevada, other states such as Delaware, Mississippi, New Jersey, Pennsylvania, Rhode Island, and West Virginia, along with the District of Columbia, have also legalized sports betting in the past year. Notably, New Mexico has yet to enact legislation on sports betting, though the Santa Ana Star Casino & Hotel has begun accepting bets under a tribal gambling agreement.
“I want to emphasize that sports betting is different from traditional casino games,” explained Mark Sickles, a Democratic lawmaker in Virginia who is advocating for a 15% tax on sports betting in the state. “My goal is to bring an existing illegal activity into the legal realm and generate tax revenue from it.”New Jersey led the way in legalizing sports betting following the Supreme Court’s decision earlier in May.
