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Why States Are Betting On Sports Gambling to Cover Budget Deficits

At any given time, the state has projects that it needs to undertake to facilitate service delivery to its citizens. But, the reality is that every state is always in need of extra funds to service its debts. Many sectors are currently striving to stabilize after the pandemic hit.

That means that there are a few sources of revenue left since the pandemic struck. Some countries were already in some debt even before the pandemic struck. That’s because significant sources of revenue had begun to collapse.

It’s estimated that there is a fiscal hole of about $615 in the US state budget. That calls for focus on other avenues, such as casinos that were not severely hit. We had a session with one of the experts, Kevin Cochran, to make a comparison of bets and casinos and discuss how different states utilize their money. 

How various states use the revenue from the gambling sector 

New Jersey

The New Jersey casino sector is also subject to the tax regulation put by the state. Recently, the taxes were increased by about 1.25%, making it 9.75%. The funds collected go to the New Jersey Casino Reinvestment.

13% of revenue collected from both land-based casinos and online casinos go to casino revenue funds. Through it, various programs for the elderly and the disabled. They need special programs that call for funding from time to time. 

They help the State Department of Human Services to undertake various programs. Also, other sports revenue from New Jersey racetracks goes into the state of New Jersey General Fund. You would be wondering where the other 1.25% will go.

The municipalities in the racetracks have multiple projects to complete and need the funds. Therefore, the municipalities utilize the 1.25%.


Nevada is not new to taxation issues, and it understands that casinos are more profitable than sports betting. It previously had taxes that the gambling industry had to adhere to. Unfortunately, they proved to be unattractive to the gambling operators and the investors. The current betting tax imposed on the gambling industry of the Nevada state is 6.25%.

That is slightly lower than other states and favourable too. Sports betting began in Nevada and has been a pillar to the state revenue. The funds are in the category of general gaming revenues and are sent to the state’s general fund.

The key sectors that benefit from the funds include Health and Education, according to a report by Guinn Center Nevada budget overview.


Not only states in the US benefit from the gambling revenue but also provinces in other countries such as Canada. The country already has a list of the best online casino in Canada

The Ontario Lottery Corporation was founded in 1975 and has spearheaded the legalization of various gambling activities. The government, through the corporation, helps the streamlining of revenue collection. The collected funds go into programs such as education, infrastructure, and sports. 

West Virginia

It’s among the states whose tax on sporting activities is slightly higher. According to taxation laws, the funds collected must be deposited to the state’s sports wagering funds. The West Virginia gambling sector gets subjected to a 10% regular taxation.

Alongside that, 15% of the gross receipts help in running the fund. The funds also help in steering other key state programs such as education.


The Department of Revenue in Mississippi helps in the tax collection. It has set its sports betting tax at 12%, allowing it to get the most from it to undertake its operations efficiently. After the collection by the state revenue department, the funds then get channelled to various accounts.

Mississippi has got outlined laws that direct how the funds should be utilized. A percentage of the sports revenue goes to a special fund account for the department of Transportation. It helps in maintaining and repairing infrastructure for roads, water, and the state sewer systems. The funds are not only limited to the Department of Transportation but also municipal and state projects.

From the above, it’s evident that gambling plays a good role in enabling the states to service their debts and undertake most of their projects. Such states understand that it is profitable to play at the casino and thus tax the gamers.

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