The decision, which would see the state's regulator charge licensed firms for their prolonged promotional play, was revealed on Tuesday. Some states have made the decision to subtract this statistic from the state tax due, but the Bay State is making sure that it is not.
There are several reasons for this, including the fact that Massachusetts wishes to prevent sportsbooks from oversaturating the market with offers that are continuously thrust in front of customers.
Revenue Tax on Promo Plays
Second, the regulator is confident that these earnings should be duly taxed since they de facto constitute a legitimate commercial activity that must be regarded as such. The MGC's decision is also not made in a vacuum. The regulator got together to evaluate data from other states and look at the advantages and disadvantages of promotional play and deductions.
In the end, the regulator ruled that such deductions were unnecessary in Massachusetts after voting 5-0 in favor of the decision. According to gambling industry news reports, the regulator also cites the original legislative goal of including promotional play as a taxable component of an operator's income.
It is however not a terrible idea to make sure that promotional play is charged. If anything, operators now have a clear understanding of what to expect and how to approach their promotional play thanks to the conjecture about it being put to rest. Although not being able to aggressively market is obviously not ideal, at least operators will now be aware of how much they can devote to extra inducements and free play.
No comments:
Post a Comment