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California Ballot Referendum: California, the most populous state, has legalized sports betting on its ballot this Election Day. Kantar/CMAG reports ad spending has already exceeded $300 million. When compared to previous ballot measures, Steve Passwaiter, a Senior Advisor to Kantar/CMAG notes, ¡°It¡¯s clearly set a new record, the spending to date has beaten totals for the 2020 measure [Proposition 22] on gig workers.¡± Additionally, to date, the California propositions has easily surpassed the ad dollars spent in any statewide political election this year (the Senate race in Pennsylvania being the second most costly). Alaska also has a ballot referendum on sports betting in November.
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We now have two nickels and three pennies, which constitute our increase via gross gaming revenue (GGR). Then the deductions begin, most notably in the form of state taxes, which vary from state to state, and supplier fees. Thus, our net gaming revenue (NGR) will be lower, perhaps notably so, compared to our GGR. If our company is catering to a state like Pennsylvania, that 36% tax rate for sports betting, 54% tax rate for slots, and 16% tax rate for table games will sting. If it is in New Jersey, the 15% rate is less ¡°taxing.¡±
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