Three Ways Tax Revenue From Legal Sports Gambling Is Benefiting US States
Less than two years after the US Supreme Court overturned a long-held ban on legal sports gambling across the country in May 2018, figures show that states who declared sports betting legal in their jurisdictions have been raking in huge amounts in tax revenue.
The decision was welcomed by proponents of legalized gambling who argued that by enforcing a blanket ban on sports betting, the Federal Government was violating the 10th Amendment. The Supreme Court accepted this argument when it ruled 7-3 in favor of reversing the ban.
Here’s how states which allow legalized sports betting are benefiting from the resulting revenue:
It’s funding programs for elderly
In the state of New Jersey, the legislature has decided to fund its Department of Human Services program with the gambling revenue. That decision means that the elderly and disabled residents of the state are being taken care of due to the betting tax receipts.
It’s funding transportation and safety programs
In the state of Pennsylvania, the gambling tax revenue is distributed among the 67 counties of the commonwealth. The local governments of these countries have the mandate to spend the allocated money on transportation and safety programs for old persons.
Similar is the case in Mississippi and Rhode Island. In both these states, the Department of Transportation has seen funds allocated that the state earns in the form of tax revenue from legalized sports betting. Gambling tax revenue is also being used to fund education initiatives across both these states.
It’s used in water conservation projects
Although it’s been only three months since the voters of Colorado approved sports betting in the state, the benefits of that decision are already being felt. The legislation that legalized sports betting in the state stated that up to $29 million of the money that the state will generate by taxing casinos and other betting places will be used in water conservation projects.
Conclusion
Although the abovementioned figures seem small when one compares them to the annual budget of states, the tax revenue from gambling is bound to increase in the coming years. Industry officials argue that provided more states follow the lead of those mentioned above and legalize sports betting, America could rake in almost $1.5 billion in tax revenue.
