Tax Foundation publishes 2024 sports betting tax report
Players in 38 states currently have access to legal sports wagering.
The US Tax Foundation has released a detailed report on its website that breaks down tax rates in states that offer some form of legal sports wagering as of 2024.
Since the US Supreme Court overturned a national ban on sports betting in May 2018, 38 states and the District of Columbia have opened legal and regulated sports wagering markets.
The states of Delaware, Mississippi, Montana, New Mexico, North Dakota, South Dakota, Washington State and Wisconsin currently allow sports betting only at retail and Tribal brick-and-mortar locations.
Along with Washington DC, 27 states offer players access to both online and retail sports wagering options.
However, tax rates and fees vary depending on the state.
The report said that New York, New Hampshire and Rhode Island have implemented the highest tax rates on sports betting, topping out at a rate of 51%.
States with lowest tax rates include Nevada and Iowa, which only charge 6.75%.
Sportsbooks in Massachusetts are required to pay a $5m initial fee to operate in the state, along with another $5m every five years to renew their operations, the report said.
Other states have larger initial fees but lower renewal fees. Pennsylvania, for example, charges its sportsbooks a $10m initial fee, with a renewal cost of $250,000 every five years.
Some states that offer both online and retail sports betting have different tax payment requirement depending on the platform, the Tax Foundation noted.
Tax contribution requirements for online operations are higher in the states of New York, Kentucky, Massachusetts, Louisiana and New Jersey than they are for those state’s retail locations.
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