Summary 7 Years of Sports Betting: Did States Get It Right?

State 

Tax Rate  

Allocation 

Arizona  

8% for retail wagering  

10% for mobile wagering 

100% to the state general fund  

Arkansas 

13% on the first $150M in gaming revenue  

20% on gaming revenue above $150M 

• 55% to the state general fund. 

• 27.5% to the city and county in which the casino is located. 

• 17.5% to the Arkansas Racing Commission for deposit into its Purse and Awards Fund. 

Colorado 

10% 

• All administrative costs incurred by the Department of Revenue’s Division of Gaming first. 

• 6% to a Hold Harmless Fund to reimburse recipients of current casino gaming tax revenue for any potential loss in revenue due to the legalization of sports betting. 

• $130,000 for counseling services and a gambling crisis hotline in the Office of Behavioral Health in the Department of Human Services for gambling addiction problems until Dec. 31, 2023.  

• The remaining amount to the Water Plan Implementation Cash Fund to fund water projects under the State Water Plan.   

Connecticut  

13.75% 

100% to the state general fund  

D.C. 

10% for private sports betting operators  

• The first $200,000 in total tax revenue generated by privately-operated sports betting is dedicated to problem gambling services in the District of Columbia. 

• The remainder split evenly between two city funds that support early childhood education and community engagement initiative. 

• The remainder of revenue generated from the D.C. Lottery operated sports betting is deposited to the general fund. 

Delaware  

50% 

• Racinos keep 40% of sports betting revenue.  

• The state keeps 50%. 

• 10% goes towards the local horse racing industry.  

Illinois 

20% on sports betting receipts up to $30M 

25% on receipts more than $30M but less than $50M  

30% on receipts more than $50M but less than $100M  

25% on receipts more than $100M but less than $200  
M 

40% on receipts more than $200M 

Capital Projects Fund and Rebuild Illinois Projects Fund  

Indiana 

9.5%  

State general fund, gambling addiction, cities and counties 

Iowa  

6.75% 

Rebuild Iowa Infrastructure, Iowa Skilled Worker & Job Creation Fund, cities and counties 

Kansas  

10% 

100% is deposited to the Sports Wagering Fund. It is then redistributed for purposes, such as prosecuting illegal gambling and incentivizing professional sports teams to relocate to the state. 

Kentucky  

9.75% on retail wagering 

14.25% on mobile wagering  

Kentucky Permanent Pension Fund and 

2.5% to the Problem Gambling Assistance Program 

Louisiana  

10% on retail wagering  

15% on mobile wagering  

State General Fund  

Maine  

10% 

• 1% of the adjusted gross sports wagering receipts must be deposited in the General Fund for the administrative expenses of the Gambling Control Unit within the department. 

• 1% of the adjusted gross sports wagering receipts must be deposited in the Gambling Addiction Prevention and Treatment Fund established by Title 5, section 20006-B. 

• Fifty-five hundredths of 1% of the adjusted gross sports wagering receipts must be paid to the State Harness Racing Commission for distribution as described in section 290, subsection 2. 

• Fifty-five hundredths of 1% of the adjusted gross sports wagering receipts must be deposited in the Sire Stakes Fund established in section 281. 

• Four-tenths of 1% of the adjusted gross sports wagering receipts must be deposited in the Agricultural Fair Promotion Fund established pursuant to Title 7, section 103; and 

• 6.5% of the adjusted gross sports wagering receipts must be deposited in the General Fund. 

Maryland 

15% 

Maryland’s State Lottery Fund/ Maryland Future Fund 

Massachusetts 

15% for retail wagering  

20% for mobile wagering  

• 1% Youth Development and Achieving Fund. 

• 9% Public Health Trust Fund. 

• 17.5% Workforce Investment Trust Fund. 

• 27.5% Gaming Local Aid Fund.  

• 45% General Fund.   

Michigan  

8.4% for retail wagering  

Revenues go to the school aid fund and to local government programs. 

Mississippi 

8%  

3%-4% local tax  

Of the revenue collected, $3 million goes to the general fund, $3 million to a bond sinking fund and the state highway fund. 

Nebraska 

20% 

• 70% to the state’s Property Tax Credit Cash Fund.  

• 25% to the host county, city and village governments of each racino. 

• The remaining 5% is split evenly between a compulsive gambling assistance fund and Nebraska’s General Fund. 

Nevada 

6.75% 

Revenue goes to gaming funds in state aid education, local government, the general fund, and problem gambling. 

New Hampshire 

50% retail wagering  

51% online wagering 

New Hampshire Education Trust fund receives most of sports betting revenue.  

A smaller portion is allocated to cover administrative costs and a new state responsible gambling council. 

New Jersey  

9.75% retail wagering  

14.25% online wagering 

• Retail sports betting funds go to the Casino Revenue Fund. 

• Revenue from online sports betting state General Fund. An additional 1.25% tax on such revenue shall be paid to the Division of Local Government Services in the Department of Community Affairs 

New York  

51% 

• $5 million to fund sports programs for underserved youths (administered by the NYS Office of Children and Family Services). 

•  $6 million to fund problem gambling education and treatment (administered by the NYS Office of Addiction Services and Supports). 

North Carolina  

18% 

• The Department of Revenue retains $500,000 of tax revenue each year to offset the cost of collecting the tax, and the Lottery Commission is reimbursed for any expenses not covered by fee revenue. Assuming sufficient funds are available from tax collections, the remaining amount is distributed annually as follows: 

• $2 million to the Department of Health and Human Services for its gambling addiction education and treatment programs; 

• $1 million to North Carolina Amateur Sports for local governments or nonprofits to purchase youth sports equipment or to provide for public facility upgrades or improvements that would benefit youth sports; $300,000 each to 13 University of North Carolina constituent institutions to support college athletic departments;  

$1 million to the North Carolina Outdoor Heritage Advisory Council for grants to assist sports teams with travel expenses and incentive grants to attract sporting events for nonprofessional athletes; 

Of the remaining amount, 20% to be distributed equally among the 13 UNC institutions discussed earlier to support, not supplant, their collegiate athletic departments, 30% to the North Carolina Major Events, Games, and Attractions Fund, and 50% to the General Fund. 

Ohio  

20% 

• 51% is directed to the County Fund. 

• 34% to the Student Fund. 

• 5% to the Host City Fund.  

• 3% each to the Ohio State Racing Commission and the Ohio Casino Control Commission.  

• 2% each to the Law Enforcement Training Fund and the Problem Gambling and Addictions Fund. 

Oregon 

State collects revenue minus expenses  

Revenue from the lottery’s sportsbook app is used to help pay down the state’s public pension liability. 

Pennsylvania  

36% 

100% to state general fund  

Rhode Island  

51% 

100% to state general fund  

South Dakota  

9% 

• 1% is distributed to South Dakota’s General Fund.  

• The remaining 8% is divided between the state’s Gaming Commission Fund, the South Dakota Department of Tourism and Lawrence County. 

Tennessee  

20% 

• Tennessee Lottery Education Fund.  

• Local Governments.  

Vermont 

DraftKings 31% 

Fanatics 31% 

FanDuel 33% 

The funds are deposited into the Sports Wagering Fund: $250,000 were appropriated to the Problem Gambling Fund in FY 2024 and $500,000 will be appropriated in FY 2025. The remainder of revenue is transferred to the state General Fund. 

Beginning in FY 2026, 5% of sports betting revenue will be appropriated to the Problem Gambling Fund. 

Virginia  

15% of adjusted gross gaming revenue  

• 97.5% to the state general fund.  

• 2.5% to the Problem Gambling Treatment and Support Fund. 

West Virginia  

10% 

Sports betting revenue is deposited into the West Virginia Lottery Sports Wagering Fund. The first $15 million of revenue is deposited to the State Lottery Fund. The remaining taxes are used to help support health insurance programs for public sector employees. 

Wyoming 

10% 

The first $300,000 in sports wagering tax revenue in each fiscal year is appropriated to the Wyoming Department of Health and then redistributed to county health programs for the prevention and treatment of problem gambling. Remaining tax payments are deposited into the state’s general fund.