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Our Opinion: Tax fantasy sports,online gambling

Our Opinion: Tax fantasy sports,online gambling As the state Legislature rushed to the July 31 finish line with all kinds of business still to be attended to, one of the measures that got lost in the last minute crunch was a bill to tax fantasy sports. That failure doesn't bode well for the Legislature's much larger challenge in the next session — reacting to a U.S. Supreme Court decision clearing the way for legalized sports betting in the states. Even though a joint legislative committee spent two years studying the issue, the Legislature couldn't agree on a bill levying taxes on fantasy sports betting by the deadline. A Senate measure applying a 12.5 percent tax that could have raised an estimated $2 million in revenue annually, according to the Boston Globe, did not get House approval, even though there is support for such a tax in that body as well. Fantasy sports taxes in most states are 15 percent. The Legislature did find time this summer to pass a measure permanently legalizing daily fantasy sports in the state. Boston-based Draft Kings, a fantasy sports industry heavyweight, lobbied for the legalization and against the tax, arguing that fantasy sports is a game of skill, not a game of chance. A small minority of upper echelon fantasy sports players actually make a good living at it, but the vast majority of players are enthusiasts, not experts, and rely on good fortune to win a few dollars.

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Numbers released by the New Jersey Division of Gaming Enforcement this week showed two significant things. The first is that NJ sportsbooks have taken in more than $57 million in bets since launch in mid-June. The second is that the operations earned just $7.3 million of that in revenue. The state’s land-based sports betting revenue tax rate sits at 8.5 percent. Therefore, New Jersey’s piece of the pie has amounted to approximately $620,500 so far.

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