New York-based Tax partner Stefi George and Fort Lauderdale-based Litigation partner Tamara Malvin recently authored an article for Bloomberg Tax titled "States Are Betting on Tax Revenue From Online Sports Wagering." They explained that while sports betting is bringing in unprecedented revenue for states that allow it, betting operators are working with narrow profit margins. Operators will have to compare different states’ approaches to taxation to determine their best bet, said Stefi and Tammy.
"Despite the huge numbers associated with sports betting handle, profit margins for operators are quite low. The reported billions of dollars in wagers appear to indicate the activity’s popularity but do not tell the complete story regarding the operators’ ultimate profit," wrote the authors.