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RICHMOND, Va. (WRIC) — Virginians have wagered greater than $1.6 billion on athletic competitions since sports activities betting was legalized on Jan. 21, 2021.
A few of that cash made it’s approach again to bettors once they received their wagers – however a variety of it didn’t. So the place does the money go?
It’s no shock to anybody who is aware of how bookmaking works {that a} good portion of the “deal with” – the entire of bets positioned in a given interval – goes again to bettors as winnings. The rest – generally known as the “maintain” – goes again to the operator.
However not all of that cash might be taxed by the state. Underneath the regulatory framework enacted on Jan. 21, corporations can deduct bonuses, promotions, and another working bills. These deductions, which totaled over half of the maintain since January, don’t depend in direction of the quantity taxed at 15%.
The rest is the Adjusted Gross Income (AGR), from which taxes are deducted – over $11 million since January.
That left operators with a cool $59 million – nothing to sneeze at.
No Extra Black Market Bets
State Senator Jeremy McPike (D-Prince William) was one of many patrons of the invoice that legalized sports activities betting within the commonwealth. He mentioned the laws acknowledges a market that’s all the time existed, “We all know sports activities betting existed earlier than this, however it’s by no means been authorized earlier than.”
One of many penalties of legalization has been a brand new supply of funding for the state. A small portion of that income is put aside by legislation for the remedy of downside playing, $276,850 in complete.
That features a program for Virginians to voluntarily exclude themselves from playing establishments for 1 12 months, 5 years, or a lifetime.
The remainder of the cash has been deposited instantly into the final fund, the place will probably be accessible throughout price range negotiations. McPike mentioned he’d wish to see the cash go to highschool reconstruction – a proposal that has precedent with the Virginia Lottery.
However McPike additionally emphasised the significance of balancing the speed at which sports activities betting revenues are taxed, to make sure that bettors don’t return to the unregulated market.
