Daily Tax Report: State

Super Bowl Gamblers: Here’s Where You Can Bet, How You’ll Be Taxed

Jan. 25, 2019, 12:01 PM

Gamblers have more reason to tune in to this year’s Super Bowl. For the first time in nearly three decades, you can bet on the big game outside of Las Vegas.

If you live in one of the seven states offering state-wide sports betting—Nevada, New Jersey, Pennsylvania, Delaware, Mississippi, Rhode Island, or West Virginia—you can wager on the Feb. 3 contest between the Los Angeles Rams and New England Patriots.

Legal sports betting is an option for all states following the U.S. Supreme Court’s May 2018 ruling in Murphy v. NCAA, which repealed the federal Professional and Amateur Sports Protection Act of 1992 (PASPA). That law had prohibited states from “authorizing” gambling related to professional and amateur sports leagues.

Sports betting is one of the biggest state policy issues of 2019. Eleven states have already introduced legislation this year. Another dozen are expected to introduce bills in the coming months, according to the American Gaming Association. Some states, like Missouri and Virginia, have multiple proposals pending.

In New Mexico, only tribal casinos can take sports bets. New York has legalized sports betting but isn’t yet taking bets.

Below is the tax rate, tax revenue, and online betting availability of each state (all tax rates are imposed on gambling revenue, which is the operator’s share after paying winning bets):

New Jersey

Tax rate: 8.5 percent for in-person bets, 13 percent for online bets

Tax revenue in 2018 (June-December 2018): $7 million from online wagers and nearly $3.5 million from in-person casino bets.

Offers online betting: Yes


Tax rate: 50 percent

Tax revenue (June-December 2018): $4.46 million

Offers online betting: No


Tax Rate: 34 percent

Tax Revenue (November-December 2018): $1.71 million

Offers online betting: Legalized, but not yet active

West Virginia

Tax Rate: 10 percent

Tax revenue (September 2018-Jan.12, 2019): $605,473

Offers online betting: Yes

Rhode Island

Tax rate: 51 percent

Tax revenue (November 2018): $37,228

Offers online betting: No


Tax rate: 12 percent

Tax revenue (August-December 2018): $1.82 million

Offers online betting: No


Tax rate: 6.75 percent

Tax revenue (2018): $20 million

Offers online betting: Yes

To contact the reporter on this story: Ryan Prete in Washington at rprete@bloombergtax.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergtax.com; Megan Pannone at mpannone@bloombergtax.com

To read more articles log in. To learn more about a subscription click here.