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Tax break helps sports betting companies reduce obligations

Posted at 12:44 PM, May 02, 2022
and last updated 2022-05-02 12:44:06-04

RICHMOND, Va. — Virginia has collected tens of millions of dollars in tax revenue since legalized sports betting debuted last year, despite a tax break for betting companies that helps reduce their obligation.

The Richmond Times-Dispatch recently reviewed Virginia Lottery numbers and found that sports betting companies have offered $168.8 million in “bonuses and promotions” to customers since launching. That promotional money can be deducted from each company’s tax obligation.

The state has taken in $26.7 million in tax revenue so far, but the promotional write-offs negated 43.7% of the revenue Virginia’s government could tax.

Only five of the 12 companies currently taking sports bets have paid any taxes since launching.

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