New Hampshire Received 13 Bids to Manage Sports Betting OperationNovember 2, 2019 Matt Speakman
New Hampshire is lucky to say that has received even 13 bids to manage its new sports betting operation. What’s best is the fact that even a few months before it takes its first bet, the officials and state sports bettors are already able to notice the positive effects of the best possible operator. This fact is a result of the new tax structured made by the lawmakers of the state by passing a bill without any codified taxes.
To be more precise, the legalization which was approved just a few months ago, on the beginning of this year, gives the state lottery special permission to select the bidder that provides what is considered “the highest percentage of revenue” regarding online and retail betting. New Hampshire is the first state in the United States to approve a bill without having set up a specific tax structure which is why it is impossible to discern what will be the effective tax rate when lottery officials announce the winning vendor later this year.
Nevertheless, what makes the situation significantly better is the fact that with 13 bids officials will definitely have a number of options between applicants who meet all the requirements set by the state and with a proper tax rate.
The Bill also Permits 10 Sportsbooks and 5 Additional Online Betting Sites
In addition, this bill also permits 10 sportsbooks and 5 additional online betting sites meaning that the lottery-run sports betting app will have to compete with other third-party operators in order to attract business deals. In fact, the tax rate offered by lottery could be then passed onto customers via some non-competitive listings that are not suitable to lines offered at other sportsbooks.
When this is taken into consideration, everything indicates that the effective tax rate will generate enough funds in a way that it would be a great government investment and low enough not to discourage interest from purveyors and players. Despite that, a higher tax rate may appear on the documents with a purpose to generate more revenue, yet again with the sportsbooks which generally take an estimate of 5% of all wagers, a much higher tax rate than 10% of those winnings would discourage operators to take bets.
Governor Signed H.B. 480 in July this Year
For people who are not familiar with New Hampshire’s journey to legalize sports betting, Governor Chris Sununu on July 12 this year signed H.B. 480 which allows sports betting online and at retail locations. With this online bettors from within New Hampshire would be able to place sports bets every time they are physically located in the state.
“With the exciting new addition of sports betting, the New Hampshire Lottery will continue to drive critical revenue, putting even more money into our educational system,”- wrote the governor of New Hampshire in her statement back in July.
With this New Hampshire became the first state in the country to legalize sports betting without having defined a specific tax rate and yet becoming one of the most successful states on the spectrum when it comes to the sports betting industry or the gambling industry in general.