{"id":318061,"date":"2024-04-22T20:14:30","date_gmt":"2024-04-23T01:14:30","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=318061"},"modified":"2024-04-23T10:04:59","modified_gmt":"2024-04-23T15:04:59","slug":"betting-marijuana-taxes-bolstering-state-coffers-says-moodys","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/","title":{"rendered":"Online Betting, Marijuana Altering State Tax Bases"},"content":{"rendered":"

US states have long applied \u201csin taxes\u201d to items such as alcohol, beer, cigarettes, other tobacco products, and wine as avenues for bolstering revenue. More recently, marijuana and sports wagering have been added to the mix, representing alterations to some states\u2019 revenue compositions.<\/p>\n

\"Illinois
Illinois Gov. J.B. Pritzker arrives at the State Capitol to deliver his State of the State and budget address on Wednesday, Feb. 21, 2024. States are generating more revenue from betting and marijuana taxes. (Image: Getty)<\/figcaption><\/figure>\n

Currently, 38 states and Washington, DC allow some form of sports wagering, well ahead of the 25 that permit recreational cannabis consumption among adults. Moody\u2019s Investors Service views both regulated sports wagering and recreational weed as crucial drivers of state and local revenue.<\/p>\n

Shifting consumer preferences, especially related to alcohol and tobacco, will continue to influence the amount of tax revenue governments can generate,\u201d according to the research firm. \u201cPrivate industry is responding accordingly, with evolving product offerings that continue to shape the \u2018sin tax\u2019 base. Tax rates vary across the country, driving the amount of revenue states and local governments can generate and having varied impacts on consumer behavior.\u201d<\/p><\/blockquote>\n

Gaming companies frequently tantalize state regulators with the idea of higher receipts<\/a> should betting expansion be approved. Marijuana brings its own set of potential tax perks, explaining why some states have moved swiftly to approve both sports wagering and recreational marijuana.<\/p>\n

Betting, Marijuana Taxes of Increasing Importance to States<\/h2>\n

Entering 2024, more than half of Americans lived in states with some form of short- or long-term budget shortfalls, according to Pew. Large states, such as California, New York, and Pennsylvania have some of those worst budget issues.<\/p>\n

\n

Of that trio, California doesn\u2019t permit sports betting in any form, but New York and Pennsylvania are home to two of the largest online sports wagering markets in the US. Those two states also apply two of the highest tax rates<\/a> on that activity.<\/p>\n<\/div>\n

\u201cStates levy significant taxes on sports books’ gross gaming revenue, though some allow the deduction of certain costs with long-term implications for business viability,\u201d added Moody\u2019s.<\/p>\n

Some states allow sportsbook operators to deduct promotional spending<\/a> from their tax tabs, but some are actively attempting to close that loophole because if that practice is halted, it\u2019d likely lead to increased revenue for the states.<\/p>\n

Betting, Marijuana Taxes Bigger Than Alcohol, Cigarettes<\/h2>\n

Moody\u2019s observed that states that tax marijuana and sports betting in addition to alcohol and tobacco \u00a0\u201cgenerate a minimum of 2.5% of own-source revenue\u201d compared to just 0.7% on liquor and tobacco. Plus, societal acceptance of betting and marijuana is increasing.<\/p>\n

\u201cMeanwhile, the exploding popularity of online sports betting is pushing casino operators to invest more heavily in mobile gaming,\u201d concluded the ratings agency.<\/strong><\/p>\n

Those are among the reasons why states such as Illinois (sports betting) and New Jersey (iGaming)<\/a> are seeking tax increases on internet-based wagering. Moody\u2019s did point out that alcohol tax revenue is rising in many states, and that tobacco levies are surprisingly steady.<\/p>\n","protected":false},"excerpt":{"rendered":"

US states have long applied \u201csin taxes\u201d to items such as alcohol, beer, cigarettes, other tobacco products, and wine as avenues for bolstering revenue. More recently, marijuana and sports wagering have been added to the mix, representing alterations to some states\u2019 revenue compositions. Currently, 38 states and Washington, DC allow some form of sports wagering, […]<\/p>\n","protected":false},"author":46,"featured_media":311629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,19,13592,1074],"tags":[81903,81871,81895,80968],"acf":[],"yoast_head":"\nBetting, Marijuana Taxes Bolstering State Coffers, Says Moody's<\/title>\n<meta name=\"description\" content=\"Online Betting, Marijuana Altering State Tax Bases.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Betting, Marijuana Taxes Bolstering State Coffers, Says Moody's\" \/>\n<meta property=\"og:description\" content=\"Online Betting, Marijuana Altering State Tax Bases.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-23T01:14:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-23T15:04:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/1708550422691.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/\",\"url\":\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/\",\"name\":\"Betting, Marijuana Taxes Bolstering State Coffers, Says Moody's\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/1708550422691.jpg\",\"datePublished\":\"2024-04-23T01:14:30+00:00\",\"dateModified\":\"2024-04-23T15:04:59+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Online Betting, Marijuana Altering State Tax Bases.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/betting-marijuana-taxes-bolstering-state-coffers-says-moodys\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/1708550422691.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2024\/02\/1708550422691.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Illinois Gov. 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