Connecticut to push for sports betting legalisation
A Connecticut committee is expected to vote on the approval and taxation of sports betting should PASPA gets revoked.
US.- The Supreme Court has yet to rule on the New Jersey sports betting case that would bring (or not) the Professional and Amateur Sports Protection Act (PASPA) of 1992 and enable the segment to be regulated nationwide. That’s why, by the end of this week, the Connecticut Finance, Revenue and Bonding Committee is expected to vote on the approval and taxation of online lottery and sports betting services.
A 15 per cent tax on sports betting gross revenue to be paid by operators has been proposed after hearing testimonies on the matter. Through taxation, the state could generate overall tax revenues of nearly US$100 million over the first five years after it gets legalised.
Despite the optimistic projections, the 15 per cent tax still needs to be approved, and it has faced some opposition. Companies like Sportech and William Hill US argued that it wouldn’t be a fair tax for sports betting operators. Vice President of William Hill US’ Strategy and Business Development division Dan Shapiro assessed that such a high rate would make it hard for the legal operators to place sports betting offerings’ prices to compete the ones offered at the black market.
Either through a 15 per cent tax rate or a lower one, Connecticut is expected to legalise sports betting in order to be ready if and when PASPA finally gets revoked.
