Virginia considers reinstating sports betting promotional tax deductions

Virginia considers reinstating sports betting promotional tax deductions

Article brief provided by Sports Handle
  • Bennett Conlin, Sports Handle
February 11, 2023 1:36 PM
  • Bennett Conlin, Sports Handle

Virginia legislators last year passed a budget amendment prohibiting sports betting operators “from excluding bonuses or promotions used to encourage betting from their adjusted gross revenue 12 months after they begin sports betting activity in Virginia.”

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The move was made to help the state better take advantage of potential tax revenue from legal sports betting, as the state’s collections were significantly reduced by the volume of promotions prior to the change.

Operators weren’t thrilled with the change, and some legislators are pushing to reinstate the promotional tax deductions in some capacity. A bill recently passed through the Virginia Senate that would allow sportsbook operators that have operated in the state for more than a year to exclude promotions from taxable revenue, up to 1.75% of their monthly handle.