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We now have two nickels and three pennies, which constitute our increase via gross gaming revenue (GGR). Then the deductions begin, most notably in the form of state taxes, which vary from state to state, and supplier fees. Thus, our net gaming revenue (NGR) will be lower, perhaps notably so, compared to our GGR. If our company is catering to a state like Pennsylvania, that 36% tax rate for sports betting, 54% tax rate for slots, and 16% tax rate for table games will sting. If it is in New Jersey, the 15% rate is less ¡°taxing.¡±
In addition, more than a dozen states sell lottery tickets over the internet, according to James Carey, executive director of the New Jersey Lottery.
¡°They already have regulators in place,¡± he said. ¡°They have servers in place. It's quicker to start up a casino addition.¡±
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Speaking at the East Coast Gaming Congress, executives of online gambling companies and their technology partners said the rapid growth of sports betting has provided a ready-made infrastructure and regulatory apparatus for online casino games.