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Tax Revenues From Cannabis Set to Take a Hit With Mobile Sports Betting Taking the Lead in New York State

New York has set a benchmark in its contribution for legalizing both cannabis for adult use and mobile sports betting. A much higher state budget will be allocated, and online sports wagers are set to overtake cannabis in their share of tax revenues. 2025 will see the same surpassing a whopping 100 percent.   

The state budget saw a 10 percent rise in its total estimation since last year. The figure was a generous 212 billion dollars for 2021. 

A recent report by Thomas DiNapoli, the New York State Comptroller who reviewed the budget, specified the reasoning that denounced the allocation. 

The major driving force was the sizeable figures accrued in federal aid and newer revenues that accounted for an increase in taxes. 

The total amounted to 12.6 billion dollars. While several other factors also led to the budget growth. This includes legalizing recreational cannabis and sports betting online that summed up the total valuation at 26.7 billion dollars. 

DiNapoli has laid down estimates. A clear indication that directs 20 million dollars as tax revenues from legalized cannabis while a much higher figure is estimated for online sports betting. An assumed 99 million dollars would result in a staggering 395 percent difference.

Eighteen months have been given as the time limit till legalized cannabis can start selling. This directs all efforts to the first half of 2025, so there will be plenty of time for both programs to flourish.

The figures could be something along 245 million dollars for cannabis and 493 million dollars for sports betting online, as predicted by DiNapoli. 

The adult-use cannabis bill was passed by the lawmakers in New York and designated a law in the latter half of March. Some estimates predict seizing a chunk of the sales share amounting to 1.2 billion dollars by 2023 through cannabis. One that is only set to soar to 4.2 billion dollars by 2027.

One of the bigger ventures for which the state budget has been allocated is online sports betting, especially after it having been granted legal status in April in New York. There are two betting companies in the line-up for receiving the license awards.

This will be after the process of asking for bids across mobile betting platforms by the New York Gaming Commission is completed.

January 1 is the date set for awarding licenses, after which gamblers can start placing their bets for the Super Bowl slated for 2022. 

The legalization of Sports Betting is one of the significant changes to have happened in New York.

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Betting

The Ohio Sports Betting Bill To Be Presented By Sen. Kirk

The sports betting industry in Ohio is set for a major development with the introduction of the highly-anticipated Ohio Sports Betting Bill on Thursday, as confirmed by Kirk Schuring, the chief of the Senate Select Committee on Gaming in the state. During an interview with a radio channel, Kirk overwhelmingly conveyed that the bill is coming soon to change the industry. The bill will be presented in front of the Ohio Select Committee on Gaming to get its take on the document.

Talking about the 250-page-long bill in the interview, Kirk revealed that the bill would open new opportunities for the sports betting business in the state. It is still in its final stage of designing, and Kirk is giving the final edits to the content. Kirk elaborated that he is working closely with the Senate President, Matt Huffman to frame the guidelines. The legislation will not be restricted to sports betting alone but will include a variety of gaming processes such as iLottery, e-Bingo, and video lottery, etc.

A similar positive reaction was given by Rep. Anthony Gonzalez, a lawmaker, when he appeared on the Pat McAfee Show. He stated that Ohio would soon kickstart the sports betting business as it is a prominent part of the area. The only issue is to decide who will be given the governing power of the industry, the lottery commission or the gaming commission. He is confident that the authorities will resolve the problem and come up with a solution.

The Solution

It is anticipated that the bill released by Schuring might solve the problem of who will control the Ohio sports betting industry. The local sports teams and leagues are proposing to give control to the Ohio Casino Control Commission. The commission administers licensed sports betting to 4 casinos, 7 racinos, and the native sports brands. These entities shall be allowed to apply for an in-person and online sports wagering license.

Some want the control to be shifted in the hands of the Ohio Lottery Commission. This plan would restrict the license availability for state wagers. However, it would help eateries, clubs, and bowling centers to run sports betting zones in their venues for customers. The sports betting market in Ohio has been facing tough competition from the nearby states that legalized the business and has suffered big revenue losses. The passing of the Sports Betting Bill will play a significant role in strengthening the gambling industry in Ohio. 

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Betting

Germany Uses EU Directive to Recover VAT Debts

Maltese casino company Lottoland Limited has been going through a tough phase after the German Tax authority has filed a suit against them for owing €10 million in VAT to the German authority. The proceedings were initiated by the Maltese tax commissioner in the First Hall of the Civil Court in Malta based on a 2010 EU directive issued by Berlin. According to the EU directive, any member state can ask for mutual assistance for the recovery of claims related to taxes and other duties in other member states.

Lottoland Limited is a leading privately owned lotto betting company founded in 2013 in Gibraltar.  Since its inception, Lottoland has paid over a total of €1 billion in prizes to winners all over the world. It also holds the Guinness World Record for being the largest online gambling payout company in the world. Lottoland is registered in Malta, and therefore, the Maltese laws apply to them in case of any discrepancies. Thus, the German tax authorities had no power to challenge the company directly and had to do the proceedings via the Maltese tax authorities.

As per the EU directive, if such a request is received from any member state, it is dealt with as the state’s own civil debt, and therefore, in this case, the court (Mr. Justice Grazio Mercieca) gave a competent authority to the Maltese government to collect the debt from Lottoland on behalf of the Germany tax department. Accordingly, the Maltese authorities filed a suit against Lottoland Limited on behalf of the German Tax authority over a huge VAT of over €10 million due to them (Germany).

During the proceedings, the company denied all the allegations against them and also claimed to not owe any money to the German tax departments. However, the court ruled out all claims based on the documents submitted by the Maltese and the German tax authorities which went in favor of the suit filed by them against Lottoland.

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Betting

Self-Serving Betting Kiosks Launched in Colorado

A move that is specifically aimed to enhance the convenience for the bettors, Bet.Works has come out with self-serving terminals for gamers in Colorado. Bet.Works is collaborating with Elite Casino Resorts to launch the specific format, which is touted to be a game-changer in the gaming industry. Gamers can enjoy this facility at the Red Dolly Casino, located in the Blackhawk area.

Transparency and fairness are major concerns for the bettors, and to make sure that gamers feel confident Bet.Works has obtained a license for this self-service facility from Gaming Laboratories International. Further, Kiosk Information Systems, a well-known name in the industry, has been roped into create these terminals. The Colorado-based tech company has unmatched experience in developing these kinds of innovative self-serving terminals.

Finer Details

Many unique features are offered through these self-serving terminals. Especially the convenience of accepting the cash and ticket in and out options are definitely going to add to the experience of sports bettors by making processes independent for the players.

Expressing delight on this association, Kim Kenney, the president of the Kiosk, said that the association with the Bet.Works is a fantastic opportunity to realize the potential of the experience that their developers have realized over the years. The top echelon of the company exuded confidence that the Kiosk’s innovative capabilities will prove instrumental in providing top-class customer experience to bettors. Kenney was also delighted that Kiosk has played an important role in facilitating the association between Red Dolly Casino, Elite Casino Resorts, and Bet.Works.

Conclusion

The partnership is vital for the Bet.Works as it presents an opportunity for the company to expand its footprints in the United States of America. This will also help the company realize its mission of delivering innovative sports betting services and entertainment experience to gamers. Overall, the association has significance for Colorado’s gaming market, which is expected to get a new fillip owing to these new self-serving terminals.

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Betting

PointsBet Signed a Multi-Year Agreement With NBCUniversal

On Wednesday, PointsBet released an announcement of its five-year deal with NBCUniversal. Under this multi-year partnership, PointsBet has become an official sports betting partner of NBC Sports Group. NBC Sports Group is a division of NBCUniversal.

David Preschlack, Executive Vice President of NBC Sports Group and President of NBC Sports Regional Networks, said that they are excited to commence their partnership with PointsBet. It will surely deliver unsurpassed betting experiences across the US sports market over different platforms, he added.

Under this deal, NBCUniversal has gained a 4.9% stake in PointsBet. This stake is worth $65 million.

PointsBet is a US-based online sportsbook, launched in January 2019. It is amongst the fastest-growing online portals for sports betting. Although PointsBet was originally founded in Australia, it is increasingly expanding its footprint in the USA. It is well-known for its mobile app (both iOS and Android) that provides the best experience and content related sports betting.

Major Highlights of the agreement of PointsBet with NBCUniversal:

  • NBC Sports Predictor App will get PointBet as an official partner that will work on its sports content. Currently, the app is home to games for four sports, including golf, football, NASCAR, and Premier League soccer. PointBet will expand this list.
  • NBC will leverage PointsBet’ full Spanish functionality to reach a wider audience of Hispanic sports.
  • PointsBet will provide props, odds, and trends for the GOLF channel and NBCSN, and other digital properties of NBCUniversal.

On Friday morning, the shares of PointsBet surged to 72%. With the announcement of the agreement, the company has succeeded in bringing in over $75 million in its revenue that is approximately up by 193% from FY19. Additionally, the bookmaker has slightly improved in its previous year’s losses (from $41.9 million to $41.5 million).

According to Sam Swanell, chief executive of PointsBet, the company has gained access to leading broadcast assets that have over 60 million active users per month. PointsBet has a greatly experienced team that is apt for in-house technology and products. The company is hopeful to utilize the existing assets while scaling the NBC platform for client acquisitions and retention in the coming five years, Swanell added.