Rhode Island quickly realized the amount of revenue they could receive from gambling and cashed in on the opportunity once the Supreme Court overturned a law that allowed Nevada the monopoly of sports betting.
Within two days, Rhode Island Senate committees were discussing how they can incorporate sports gambling into their state. While Rhode Island legalized the practice, they are not the only ones. In fact, Mississippi, Delaware, New York, New Jersey, Pennsylvania, West Virginia, and New Mexico have hopped on board too.
Sports betting bills have also been introduced in about 15 other states too. As you can see, the states realize the potential revenue that can be made from legalizing the activity.
The Great Recession that occurred in 2007 to 2009 is still on the minds of many states and their congressional leaders. Because of this, these states are looking for ways to increase their revenue and they see the true potential behind sports betting.
Senate President in Rhode Island, Dominick Ruggerio said, “Sports wagering provides the state with a revenue stream that supports critical priorities, such as investing in roads and schools, without increasing the tax burden.” Sounds nice, right?
How Do States Get Paid?
One of the biggest concerns that some states may face is how they get paid. Yes, the sports betting brings in revenue, but how does it all pan out for the state itself.
In Rhode Island, the state receives a 51 percent share of net sport gaming revenue. The rest of the percentage is split up between the casinos and International Game Technology.
Since the legalization of sports betting in Rhode Island, the state has been a big proponent of it. The state itself was hit hard throughout the recession and it has taken a long time for them to even come close to overcoming it. Being plagued with budget deficits and areas of the state needing attention, they have fallen short.
Money from sports wagering has allows them to bring in extra money to pay for and fund areas where they were starving. Rhode Island’s officials expect to earn an estimated $23.5 million from sports game wagering in the first fiscal year.
Rhode Island is not the only success story either. In fact, Mississippi started taking its first sports bets in August of 2018 and had an estimated gaming revenue of $13 million to $65 million a year. With their 12 percent tax in action, 8 percent would go to the state itself and 4 percent to the local governments.
Lastly, New Jersey expects to see roughly $13 million in tax revenue for the fiscal year ending in 2019, all from sports wagering.
Get Ready to Enjoy Sports Betting
With so many states experiencing success and gathering extra revenue to fund their budget deficits, it will be no time before other states start to jump on the band wagon and follow suit.
Before you know it, sports betting will be legalized in all 50 states in the United States.