The New York Gaming Commission’s announcement of a 51% tax rate on the nine sportsbooks authorized to launch online in the state raised concerns about the way the economics will play out in what soon will be the nation’s largest sports betting market.
Here’s a look at tax rates in other states, ranked by handle size in September, where U.S. sportsbooks combined for a record $5.16 billion in handle with Arizona still to report. A per cap look at both handle and tax revenue show that higher tax rates generally deliver the most revenue to the states, even when per cap handles are lower.
New Jersey’s proximity to New York and Nevada’s tourist base have driven outsized handle per resident.