Curtailing tax breaks for sports betting companies’ “free bets” is paying off for two states that took the step last year to limit how many of these promotional offers sportsbooks can deduct from their gross income.
Betting platforms like FanDuel, DraftKings, Caesars, and BetMGM frequently offer “free bets” or credits, often referred to as “free play,” to attract new gamblers. While these promotional bets can be a substantial portion of their gross gaming revenue, they may not be subject to taxation in every state.
As sports wagering bloomed following the US Supreme Court’s 2018 decision striking down a near-nationwide ban, ...
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