Casino City's iGaming Pocket Directory - 2014 Edition

96 Sponsored by Casino City’s iGaming Pocket Directory SPORTS BETTING Sportsbooks face significant tax issues in several other jurisdictions. Austria: 2 percent turnover France: 9.3 percent turnover Germany: 5 percent turnover Italy: 3-3.5 percent turnover Turnover taxes tax every dollar wagered. Most sportsbooks prefer a gross gaming revenue model, which taxes the difference between the amount wagered and the amount returned to players. Three European jurisdictions currently tax gross gaming revenue – Belgium (11 percent), Denmark (20 percent), and Spain (25 percent). Even with the existing tax issues and a potential point-of-consumption tax in England looming on the horizon, 2014 promises to be a big year in sports betting thanks to the World Cup. The world’s most popular tournament will be one of the most bet on events of year. And it presents an interesting challenge to sportsbook operators. Most of the money bet on the World Cup is traditionally on a country to win. So in England, the sportsbooks will be taking plenty of action on England to win. In Germany, the bets will be on the strong German side to win. Spaniards will be betting on Spain and Brazilians will be betting on Brazil. But sportsbooks make their money when the betting favorites lose. So will the English sportsbooks be rooting for England to win or lose? Will the Spanish sportsbooks be rooting for Spain to lose? Will the desire for profit trump patriotism? And how will sportsbooks use national pride to turn a profit? The money here says the sportsbooks will be just fine with a Uruguay victory in the World Cup, especially if it comes at the expense of one of the betting favorites. SPORTS BETTING INDUSTRY OVERVIEW