Comment by dakolli
7 hours ago
You can't tax revenue in sports gambling markets, it actually just leads to predatory gambling products with massive vig/house edge. This was attempted in Tennessee. Margins are extermely low sports betting, like 4.5%. Its actually a loss leader typically. So for casinos that only have this type of wagering it taxes like this aren't going to work. A casino might turn over 50 billion yearly but only have a 2.5% edge in sports betting but you're proposing we tax them on the 50 billion. It doesnt work.
It will either push them out of business, or they'll find a way to screw the player to increase margin through even more deceptive products.
If the legal entity can't operate because of a tax on revenue than illegal offshore entities will gladly take their place and do.
The only solution really is sharia law, a complete ban and harsh punsihments for all operators and customers. I say this ironically but it actually is really the only solution, and even this doesnt work entirely.
Sports betting was, if not prohibited, then highly-proscribed for most of my life. You could do it in a few places like OTB, go to Vegas, or deal with an illegal bookie. People still gambled, but this made the problem orders of magnitude smaller than it is today. We did not need Sharia law or the guillotine, just an existing system of laws that were generally highly workable. It is not helpful to pretend like we need wild solutions just to achieve results we’ve already achieved and maintained for decades.
I really dont think the problem has gotten worse, its just more visible. The previous status quo didnt work either, you just didnt hear as much about it because there weren't commercials.
In all reality, the NASDAQ does the entire yearly turnover Klashi and Polymarket combined in a few minutes. It hasnt become as big of a problem as people make it out, but its still a problem.
But there's no going back to the status quo with 1990s methods of enforcement. Everyone knows how to use crypto and VPNs, you'd just be pushing people into shady offshore.
Why do you assume the tax is on bets and not on profits
People here have said even crazier ideas on HFT trading tax or wealth tax. People have lots of crazy ideas about taxation that clearly doesn't work. It's hard to tell if they don't get it or don't care because they actually just want it banned outright.
Few here would be a good politician or law maker.
Im replying to a comment that says it should be taxed on revenue.