A few weeks ago, Delaware became a front runner in the sports betting revolution with the passing of legal sports betting within the state. Those in Delaware can now engage in full scale sports betting, which is only possible because of the Supreme Court decision made on May 14th that overturned the Professional and Amateur Sports Protection Act. The former act prohibited any sports betting outside of Nevada. They’ve now given the choice to the states and Delaware is jumping on board quickly.
The state’s three casinos, Delaware Park, Dover Downs Hotel & Casino, and Harrington Raceway & Casino are now offering places for gamblers to place single-game bets on baseball, football, basketball, hockey, soccer, golf, and auto races. Placing in-game bets while the sporting event is happening is still illegal, however. The governor was shown making the first legal sports bet, which only demonstrates how the Delaware government fully supports the new changes coming their way.
The decision to overturn the Professional and Amateur Sports Protection Act was largely influenced by the fact that there was an illegal industry in sports betting happening that was estimated in being $150 billion each year. By offering legal means to bet on sports events, there is hope that the illegal market will be crushed and the states will benefit financially. It basically takes the money out of illegal activity and turns it into money that can benefit all citizens in the area.
In addition to states gaining benefits, the IRS will also see their share of the pie, just as with any other income earned.
“The amount of gambling winnings, less any losses, gets tacked on to all other income you have … and is taxed as ordinary income,” said Bill Smith, managing director at CBIZ MHM’s National Tax Office in Washington.
Due to the fact that Delaware already had much of the legalities set up for casinos and gambling, it was able to jump on this new opportunity quickly. Delaware legislators are hoping by being one of the first states to get on board, they’ll benefit for all citizens of the state with additional funds.
While Delaware is one of the first states to make sports betting possible in their area, other states like Pennsylvania, West Virginia, and Mississippi are also moving forward at rapid rates to implement ways to benefit from the law change.