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- California could generate up to $700 million in tax revenue annually from legalizing sports betting.
Sports betting could become legal in California later this year, opening up a $30 billion annual handle. A proposal in the legislature needs to garner 60% approval and be signed by Gov. Gavin Newsom by June 25 to ensure its place for a public vote in November.
Analysts estimate California could generate between $500 million and $700 million annually in taxes by implementing a 10% tax on gross revenue for in-person wagering and 15% on mobile or online sports betting. New Jersey, the nation’s largest sports betting market, has a 13% online sports betting tax rate and 9.75% take on retail sportsbooks.
State Taxes Collected Since May 2018 From Sports Betting:
- New Jersey – $57.8 million
- Nevada – $39.3 million
- Pennsylvania – $42.1 million
- Total From 12 Active States – $198.5 million