How do states make money on the online sportsbooks

[cincy]

I recall reading a state makes 8% from online sports wagering in the legal states but how do they get this. Do the sportsbook pay the state or do they deduct money from winning wagers or deduct money when players request payouts?

[jjgold]

Most of the sportsbooks don’t make much money in UnitedStates just too many fees and not enough volume

They do make a few bucks with the online casinos how much more profitable

[d2bets]

Sportsbook pay a percentage of their winnings.

[MinnesotaFats]

Well...aside from the licensing fee, the book operates as a tax collection (or generating) vehicle for the State.

The Company running the book obviously pays income taxes, but more importantly, issues 10s of thousands of 1099s...so there's a record....and the State / Feds get their cut of that.

In 0 income tax states like Florida, it's just a flat rate deal w the tribe. $550million per year for CLASS 3 gaming exclusively.

[TheMetsSuck]

Just like legalized weed dispensaries. They tax you to death. Gimme offshore all day. Wish I had a good local weed connect in LA. Getting really sick of paying 80$ for 8ths at sweet flower and medmen. Nothing beats a reliable dealer / local book / offshore book.

[Doug tushyterror]

Just like legalized weed dispensaries. They tax you to death. Gimme offshore all day. Wish I had a good local weed connect in LA. Getting really sick of paying 80$ for 8ths at sweet flower and medmen. Nothing beats a reliable dealer / local book / offshore book.

About a year ago I was visiting relatives in LA & stopped by the one on Melrose. Remember it being over $50 for 7Gs of ground.Total fukkng rip off.

[TheMetsSuck]

Ya dougie and that’s buying the crappiest flower they’ve got. They usually include a gram of keef with those which is nice.

[Neo50]

Ya dougie and that’s buying the crappiest flower they’ve got. They usually include a gram of keef with those which is nice.

Wisconsin lolololololololol

[TheMetsSuck]

You’ll be reloading again if you take Michigan guy

[Neo50]

You’ll be reloading again if you take Michigan guy

Wisconsin lolololololololol

[jjgold]

Its why most books cannot offer perks in USA other than a signup then they move onto gimmick perks which are a losing prop

Money is too tight

[cincy]

So from players perspective, is there any difference in placing a wager at -110 odds on Caesars online app or through an offshore sportsbook? Will Caesars tax large sportsbook winnings before paying out on a bet like a horse track does when a large horse wager wins? Will Caesars deduct any taxes if I request a withdrawal that exceeds my total deposits? Will Caesars send year ends statements to the government showing my net win/loss amount?

[d2bets]

So from players perspective, is there any difference in placing a wager at -110 odds on Caesars online app or through an offshore sportsbook? Will Caesars tax large sportsbook winnings before paying out on a bet like a horse track does when a large horse wager wins? Will Caesars deduct any taxes if I request a withdrawal that exceeds my total deposits? Will Caesars send year ends statements to the government showing my net win/loss amount?

All of that is a NO. No difference.

My understanding currently is that the sportsbook will only issue a W-2G if you win a wager at greater than 300-1 odds. Note that this is different from fantasy wagering. And of course the government may change this at some point.