more and more are going to flock offshore read this

[jjgold]

DraftKings is planning a tax on consumers in states with the highest sports betting tax rates, as the company looks to boost profit.

Starting January 1, it will implement a gaming surcharge on winning bets in states with multiple betting operators and where the tax rate is above 20%.

The announcement came as the sports betting operator released its second-quarter earnings, which marked the company's first-ever profitable quarter as a public company.

 

[kostasmalina]

5dimes is going to destroy everyone if they come back with -105 reduced lines in all 50 states

 

[BMR Genie]

Welcome back to offshores/local bookies.

 

[kostasmalina]

All it takes is 1-2 more stories where someone hits a crazy SGP and wins $100k, and has to pay a 40% tax.

New York Times will put up an Editorial. Draft Kings stock will halve. This moron CEO gets fired, and they hire someone competent.

I would say this is great news for the offshore industry and those who are unafraid to gamble there.

 

[djefferis]

5dimes is going to destroy everyone if they come back with -105 reduced lines in all 50 states

They would if they came back as a legal book - but simply put - impossible to offer -105 pricing and pay the states.

They obviously won’t come back as an offshore - they made their deal already to avoid prosecution.

If offshore can’t offer -105 / no bonuses and stay in business - a US licensed operator sure won’t be able to do it sustained for any period. Maybe a Sunday night game of the week or something - but not every game/year round.

 

[edawg]

Never liked DK always gave me a shyster type feeling.

 

[jjgold]

They would if they came back as a legal book - but simply put - impossible to offer -105 pricing and pay the states.

They obviously won’t come back as an offshore - they made their deal already to avoid prosecution.

If offshore can’t offer -105 / no bonuses and stay in business - a US licensed operator sure won’t be able to do it sustained for any period. Maybe a Sunday night game of the week or something - but not every game/year round.

They can’t afford United States. It’s too costly to operate and you can’t get accounts. The public plays it only four major properties. The rest are basically bankrupt.

Offshore has hardly any cost that’s why they can offer low juice USA can’t afford it

Offshore is going to be the place to be how stupid are these companies

 

[BobbyFK]

Offshore is definitely the way to go!

 

[djefferis]

JJ has some valid points in what he says (I’m as shocked as anyone) - but as usual misses out on the whole picture.

Yes - legal sport betting is too expensive for anyone to jump into the mix - versus offshore where basically anyone can open up shop in a day provided their payment clears the PPH operator they use.

BUT Your leaving out the big picture of legal sports books and what becomes of those licensing fees and revenues. It’s similar to drug enforcement - their goal is supposedly to stop drugs, but many agencies have became more interested in seizing property/cash over drugs - because they can keep an apportionment of the cash and equipment for their agency. - drugs they just destroy.

Similarly - usually 2-3% of gambling profits from the legal operations are set aside for “gambling programs” - this includes things like the problem gambler assistance/800gambler hotline and counseling programs - but it also includes illegal gambling enforcement. So in essence - a percentage of those legal gambling proceeds are going to combat offshore operations that “steal” customers from legal operations.

By keeping the price high - the few legal operations know they can build a moat around their business and have a duopoly on the apps and by paying a small percentage as a bribe - they know they can keep the heat on offshore operators. Better yet - the same law enforcement who are responsible for cracking down on offshore know there is no point in cracking down on PPH skins - there is no money there and a new one will pop up next week - but attack the processors and reap the reward of confiscated funds.

The processor issue for offshore is going to be a problem for a while - BTC helped of course - but it’s still a constantly evolving issue with a government who is gaining more powerful tools every time a legal book remits a payment to gambling programs.

The answer seems simple - lower cost and allow legal operators to run operations at the same pricing/limits as offshore - but it will never happen. Too many pie in the sky promises were made to get legal gambling through - and the promised revenues for non gambling things need to be paid back. Everyone got promised a big payday and now legal gambling is here and those paydays are expected - and the only way to meet them is sky high licensing and take out. It’s why Ohio has record revenue in their casinos yet is bleeding gambling operations who can’t make money here.

 

[jjgold]

USA gambling is only gonna get worse

Books are failing at record rates

Westgate and Wynn chewed alive other states

You just can’t dent a four book monopoly

 

[str]

Pigs get fat.
Hogs get slaughtered.

 

[KingKolzig]

Make bets available here?

 

[edawg]

Pigs get fat.
Hogs get slaughtered.

Don't tell someone about your one guinea pig when he's slaughtered a thousand hogs.