Appeal for More Lenient Taxes on iGaming Made by Evolution’s CPO

iGaming

There is no doubt that iGaming is a hugely lucrative sector in the USA, and globally. The growth in iGaming has been impressive in recent years and is evident in the amount of money gaming companies have been willing to invest in product development.

Within iGaming, online gambling in particular has shown impressive potential for growth. This has been visible in the number of online casinos popping up. Of course, there are rogue casinos, but legitimate portals have been seen to be investing time, money and effort into ensuring customers have an enjoyable user experience and are provided with a secure online environment to do so.

Gambling regulations implemented by some US states are quite stringent and unfortunately, act as a barrier to the iGaming sector’s growth.  Recently, the Chief Product Officer at Evolution, Todd Haushalter appealed to the US gambling regulators to implement fairer taxation regulations on the iGaming sector to allow the market to reach its full potential.

According to Haushalter, the US has the potential to be the leading iGaming market across the globe. Yet, this is only possible if regulators in charge provide fairer taxation rates, without allowing it to become restrictive. Haushalter elaborated that it would help suppliers to provide players with more cutting edge offerings, made up of a vast range of iGaming products including already-renowned operators such as WooCasino, which have already become household names in other jurisdictions.

Sensible’ Rates To Ensure Growth

Haushalter went on to say that US states have the ability to establish taxes at more ‘sensible rates’.

He presented the example of Nevada’s tax rate on land-based casinos being set at 6.75 per cent of gross gaming revenue (GGR) which enable the state to become one of the leading markets within the USA compared to New York where sports betting is currently being taxed at a rate of 51 per cent of GGR.

The ‘Feverish’ iGaming Sector Today

In terms of describing the iGaming market as it stands today, Haushalter said that the words ‘frenzy’ and ‘feverish’ are the first that come to mind.

He went on to say that “The excitement around the business is incredibly high and it reminds me of the early days of the .com boom”

The US iGaming Market’s Potential

To justify his stance in asking for more favourable tax rates, Haushalter said: “Everyone knows that online gaming will be massive in America since this is the world’s largest gaming market already. As a result of this, we are seeing many companies investing heavily today to secure their place in the future of online gaming.

He then went on to elaborate by stating the way in which lower taxes on gambling had proven to play a significant role in boosting tourism in the past

: “What is needed now is the same thing that made the great land-based markets flourish – low gaming taxes and a great offering. Nevada and New Jersey have the lowest gaming tax rates in America and inevitably have seen the most investment. They also offer everything a tourist could ask for.”

With reference to the iGaming sector, Haushalter concluded his statement by saying :

“In online gaming that means offering the full range of sports betting, all types of slots, skill-based games, table games, and of course live casino with its innovative game shows.”

Prospects For Thr Future

Although Haushalter has certainly put forward a strong argument in favour of US authorities introducing more lenient tax rates on the iGaming sector in an bid to see the industry flourish to its full potential, it is unclear whether his appeal will be actioned.

Hopefully, the regulators will see value in Haushalter’s motivations and acknowledge the potential iGaming companies have in boosting state economies across the USA and in turn will do what they can to make tax rates more ‘sensible’.