Turning the Tables on State iGaming Taxes

New Jersey, Delaware and Nevada recently enacted laws legalizing and regulating online gambling. Analysts expect to see the online gambling market grow in 2014 as other states watch closely to see how well the new markets perform over the next few months. Ben Blair, a tax lawyer with Faegre Baker Daniels, authored an article appearing in iGaming Business North America focusing on how states are implementing and collecting fees on iGaming.

Blair specifically noted that states will try to avoid rules in the Internet Tax Freedom Act by charging licensing fees to online casinos rather than taxing the gamblers collecting their wins. Blair added that legal challenges are likely, and that other states considering opening iGaming markets will be weighing their options depending on how those challenges play out.