Don’t Gamble With Sales Tax-Considerations for Sportsbook and Commercial Online Gaming Providers

This article was originally published in the Journal of State Taxation.

Since 2018, at least 36 states and the District of Columbia have enacted legislation regulating and taxing sports betting; about seven of those provide online casino-style games, which players may access via their mobile devices, similar to sportsbooks. That legalization is creating a market for operators and technology companies that support interactive sports betting and gaming platforms and raises important questions regarding taxation.

This article can help industry operators identify key issues and considerations when determining what is subject to U.S. sales tax, how the tax will be calculated, and who is required to collect the tax.