The change will create a charge on the volume of activity, not just on the income actually obtained. A bettor who records US$100,000 in winnings and the same amount in losses during a fiscal year, who previously would not pay taxes because he had zero profit, will now be taxed as if he had made US$10,000 in profit, according to an analysis by entrepreneur Joe Pompliano, specialized in sports finance.
With a federal tax rate of 24%, this person will pay US$2,400 in taxes even without any real gain, according to calculations presented by the expert.
The measure will affect both professional and recreational bettors in the United States. Professionals may see their profits reduced, while casual bettors will face less favorable conditions.
The tax change will affect the entire national betting market, including physical casinos and online sports betting platforms legalized in several American states in the last seven years.
There is still no information on how the states that recently legalized online sports betting to increase their revenue will react to the change.
Source: Poder360
