News coming out of New Hampshire is big!
The state is the next closest to legalizing and regulating sports gambling. Lawmakers announced this past week that they are considering a proposal for next steps (which has already been written). The overall consensus on this is pointing in the way of legalization, *cough* as it should.
The fun question is in what way will they control this? Well sources are saying that the big vision is to give the New Hampshire Lottery Commission oversight of sports betting. They would keep 5% of the amount wagered, and the state would get a portion of that on top of taxation. This in some retrospect, is following the idea West Virginia took upon their regulation.
On a broad level, 5% of revenue does not seem a lot. However, considering that the underground betting market in the US is estimated to be in the upper billions per year, 5% is very significant. This will no doubt give the state a few good million more and would be highly profitable for them to do. However, my biggest concern is with small business. 5% of revenues for large casinos like MGM is pocket change, however if there will be smaller companies trying to get into this market, that 5% on top of taxation will be significant. I am sure that New Hampshire will have hefty registration fees and licenses as do states like New Jersey and West Virginia, along with other small stipulations that would cause more money to be spent per company.
Thus, all in all, it needs to be understood that it won’t be easy to start a sports betting company as more states push for legalization with laws that would be similar to this. If they want a real capitalistic marketplace for this industry to succeed, less regulation needs to be put on it for it to grow. Let’s face it, if the major casinos are the only ones that would be able to afford to pay per state fees, taxes and revenue percentages, then there will easily be corruption and problems that every law maker has always screamed about when thinking about the betting industry. Personally, I think politicians are making this much more complicated than it needs to be and we can only sit back and shake our heads as we see this unfold.