The New York State Gaming Commission has announced what the tax rate will be for the unfortunate person who gets the right to run online sports betting. While most of the bids may have already been in the works, the Gaming Commission has kindly given the players until Monday to revise complex proposals worth millions of dollars.
There are so many wrongs with these attempts by New York to catch up with New Jersey and other parts of the country that we don’t know where to start.
A minor question is how does an administrative body like the Gaming Commission have the power to set tax rates. Everywhere else, only the Legislature can pass tax laws. But New York may be different.
The bigger concern is the rate chosen by the Gaming Commission. News reports headlined that the top rate was set at 65%. It would be more accurate to say that New York has decided that sports books can stay at 35%. 온라인카지노
In the new Internet Sports Betting Act, they say: “The legislature’s sense is that this provision does not violate a statute authorizing individuals who place bets virtually or electronically to accept bets and that bets are accepted through equipment located within licensed gaming facilities.” In other words, the state legislature can simply override the Constitution’s explicit prohibition on making books by declaring that sports betting by mobile phones 100 miles away is a “casino gamble” as long as computer servers are in casinos
Gaming that uses this law will also cost licensed businesses. You have to pay an upfront fee of $25 million to get a license. And, since all sports betting must go through casinos, sports books also have to pay their casino partners an additional $5 million per year. It is not yet known if these seven lucky casinos will ask for more money.
Then a ridiculous 65% tax rate applies. In 2008, he was hired by the state government of Delaware and was recommended a tax rate that should be levied on sports books they planned to reopen at their racetracks. Delaware is one of the few states where people can place legal sports bets under federal occupational and amateur protection laws.