{"id":24006,"date":"2023-05-24T07:35:41","date_gmt":"2023-05-24T07:35:41","guid":{"rendered":"https:\/\/legalsportsbooks.com\/?p=24006"},"modified":"2023-05-24T07:38:05","modified_gmt":"2023-05-24T07:38:05","slug":"massachusetts-regulators-crack-down-on-promo-tax-exemptions","status":"publish","type":"post","link":"https:\/\/legalsportsbooks.com\/blog\/2023\/05\/24\/massachusetts-regulators-crack-down-on-promo-tax-exemptions\/","title":{"rendered":"Massachusetts Regulators Crack Down on Sportsbook Promo Tax Exemptions"},"content":{"rendered":"
In a recent development, Massachusetts regulators have taken a firm stance on the taxation of sports betting operators, disallowing them from deducting the value of free bets and promotional offers when calculating taxable revenue.<\/p>\n
The Massachusetts Gaming Commission (MGC) engaged in extensive discussions surrounding the possibility of granting promotional deductions to legal sports betting operators within the state. Bookmakers expressed concerns that including promotional gaming credits would result in a reduced tax on actual revenue generated.<\/p>\n
The issue stemmed from a lack of clarity in the Massachusetts sports betting law, as it was subject to last-minute negotiations by lawmakers in order to reach a compromise for the passage of the wagering legislation.<\/p>\n
However, following consultations with legislators, the state’s attorney general, and a thorough review of early sports betting data, the MGC reached a unanimous decision, voting 5-0 in favor of including bonuses when determining the taxable revenue of operators.<\/p>\n
Commissioner Eileen O’Brien emphasized that most states do not permit deductions related to promotions. Allowing such deductions in Massachusetts could impact the state’s tax revenue, a portion of which, 9%, is allocated to a Public Health Trust Fund dedicated to problem-gambling programs.<\/p>\n