Virginia Considers Restoring Tax Deduction for Sports Betting Promotions
Virginia lawmakers may bring back write-offs for free-bet promotions in sports betting apps, a move supported by the gaming industry.
Virginia lawmakers are considering restoring a tax deduction for free-bet promotions offered by sports betting apps.
This comes after the industry argued that policymakers were inhibiting the long-term potential of betting platforms by making it harder to attract new bettors and keep existing ones.
While some lawmakers were frustrated by the exemption, the state saw a significant bump in tax dollars after it was removed.
The proposal being considered would cap the tax deduction at 1.75% of total wagers and retain an existing rule allowing the promotions to be deducted from tax liability during a company’s first 12 months of operation in Virginia.