This piece is part of a series of stories about today’s sports-betting boom and how to combat a gambling addiction. To read the rest of the stories, click here.
BIPARTISAN EFFORTS ARE rare in today’s political climate, but the legalization of sports betting is a show of unity. Since the Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, 38 states plus D.C. have legalized sports betting, namely due to the big bucks (read: billions) it’s generating across the country.
Each state, however, sets different tax rates on the sports betting industry, which results in wildly different priorities for the money they do collect, especially when it comes to allocating funds for problem-gambling resources. With such wide disparities, many states are unprepared and underfunded for a potential boom in gambling addictions, and people will be impacted differently depending on where they live.
“The real question people should be asking is what happens to all of this money that is generated above board?” says Timothy Fong, M.D., a clinical professor of psychiatry at UCLA and a codirector of its gambling-studies program, noting that a boom in sports-betting revenue does not necessarily equal a boom in revenue for problem-gambling treatment and prevention. “If you’re in a state that now generates $150 million a year [from] sports betting, if that $150 million went to something completely unattached to sports betting, if it doesn’t go to helping the public health damage from sports betting, then that’s a major concern.”
Men’s Health reached out to the states that have legalized sports betting to find out how much tax revenue they earned from legalized sports betting in 2022, and how much they currently allocate to helping people with gambling problems. Some of the numbers may surprise you.
*Estimated
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Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • Washington, D.C. • West Virginia • Wisconsin • Wyoming
Alabama
This state has not legalized sports betting.
Alaska
This state has not legalized sports betting.
Arizona
Tax Revenue: $28.9M | Allocation: $2M*
The Arizona Department of Gaming Division of Problem Gambling receives 2 percent of tribal gaming contributions to the Arizona Benefits fund, which is used for the prevention, education, and treatment programs for people and families affected by problem gambling. This results in approximately $2 million dollars per fiscal year in funding.
Arkansas
The Arkansas Racing Division did not respond to Men’s Health‘s data request by press time.
California
This state has not legalized sports betting.
Colorado
Tax Revenue: $19.6M* | Allocation: $2.6M*
In the state, $2.5 million is allocated towards problem-gambling grants and $130,000 towards the operation of a hotline.
Connecticut
Tax Revenue: $14.5M | Allocation: $4.3M
In the state, $3.3 million comes from the Connecticut Lottery Corporation, and $500k comes from each tribe (Mashantucket Pequot and Mohegans). The allocation does not come directly from the state’s sports betting tax revenue.
Delaware
Tax Revenue: $9.3M | Allocation: $1.5M*
On average, $1.5 million in Lottery revenues are dedicated to problem gambling in a given year. At this time, the allocation does not come directly from the state’s sports betting tax revenue.
Florida
Sports betting is legal, but not yet operational.
Georgia
This state has not legalized sports betting.
Hawaii
This state has not legalized sports betting.
Idaho
This state has not legalized sports betting.
Illinois
Tax Revenue: $128M | Allocation: $10M
This amount is determined by the Illinois General Assembly and is not based on yearly gaming revenue figures.
Indiana
The Indiana Division of Mental Health and Addiction did not respond to Men’s Health‘s data request by press time.
Iowa
Tax Revenue: $11.9M | Allocation: $3M*
Iowa currently allocates $1.75 million from sports betting tax revenue to problem-gambling resources, and $3 million overall.
Kansas
Tax Revenue: $2M | Allocation: $685,000*
Sports betting began operating on September 1, 2022, so revenue does not include the full year (current revenue reports can be found here). The state’s problem gambling fund receives $80,000 from Kansas Lottery revenue. The sports betting law provides an additional $100,000, as well as two percent of the state’s casino gambling revenue.
Kentucky
Sports betting is legal, but not yet operational.
Louisiana
Tax Revenue: $34M* | Allocation: $1.5M*
Five percent of sports betting tax revenue goes to problem-gambling resources (2 percent goes to the Behavioral Health and Wellness Fund and 3 percent goes to the Compulsive and Problem Gaming Fund).
Maine
Sports betting is legal, but not yet operational.
Maryland
Tax Revenue: $4.7M | Allocation: $6.6M*
Maryland’s mobile sports wagering market did not launch until November 23, 2022, so revenue does not include the full year with both mobile and in-person sports betting (current revenue reports can be found here). Prior to that point, the state had five retail sportsbooks. With both mobile and retail wagering active, sports wagering contributions have totaled nearly $21.6 million from January 2023 through June 2023.
Contributions to Maryland’s Problem Gambling Fund are not based on a tax or a percentage of gaming revenue. Each of Maryland’s six casinos pays an annual assessment of $425 per slot machine and $500 per table game to the problem-gambling fund. In FY23 (July 2022 through June 2023), these assessments totaled $4,480,975. Unclaimed sports wagering prizes are also contributed to the Problem Gambling Fund, and totaled $2,091,753 for FY23. Thus, the combined total that went to the Problem Gambling Fund for FY23 was $6,572,728.
Massachusetts
Tax Revenue: N/A | Allocation: $5.9M*
Sports betting launched in Massachusetts in January 2023, so 2022 tax revenue figures are unavailable (current revenue reports can be found here). Massachusetts’ gaming law established a Public Health Trust Fund in order to support problem-gambling prevention and mitigation programs and services. Nine percent of the sports wagering fund and 5 percent of the gaming revenue fund is allocated to the Public Health Trust Fund.
Michigan
Tax Revenue: $14.4M | Allocation: $2.9M*
$2 million is deposited per the Michigan Gaming Control Board; $500,000 is deposited per the Internet Gaming legislation; $500,000 is deposited per the Internet Sports Betting legislation; and State Lottery deposits a percentage of the net revenue in the state lottery fund that is equal to not less than 10 percent of each year’s state lottery advertising budget but not to exceed $1,000,000. Historically that amount has been $990,000.
Collectively, that is a total of $3,990,000. After subtracting the $1,040,000 allocated to domestic violence, that leaves a remaining $2,890,000 designated for the problem-gambling helpline, treatment, and prevention services.
Minnesota
This state has not legalized sports betting.
Mississippi
The Mississippi Gaming Commission did not respond to Men’s Health‘s data request by press time.
Missouri
This state has not legalized sports betting.
Montana
Tax Revenue: N/A | Allocation: $0
There’s no tax on sports betting in the state of Montana. Montana Lottery is the only legal sports betting operator. The Montana legislature determines where Lottery proceeds go and has allocated them to the state’s General Fund and STEM/health care scholarship program. It has not allocated funds to problem-gambling resources.
Nebraska
The Nebraska Racing and Gaming Commission did not respond to Men’s Health‘s data request by press time.
Nevada
Tax Revenue: $30M | Allocation: $2.2M*
Problem gambling is now funded via a direct appropriation from the state’s General Fund. The Nevada Gaming Control Board is no longer responsible for the collection of this distribution.
New Hampshire
Tax Revenue: $31M | Allocation: $450,000*
Up to $250,000 from sports betting revenue is earmarked to support responsible gambling in New Hampshire, as well as $200,000 from charitable casinos (three locations) with additional support from vendors like DraftKings.
New Jersey
Tax Revenue: $97.9M | Allocation: $4.3M
Of the state’s total allocation to problem-gambling resources, $1.2 million is from sports wagering fees.
New Mexico
Tax Revenue: N/A | Allocation: N/A
Sports betting is only legal on tribal lands. The New Mexico Gaming Control Board does not regulate tribal casinos.
New York
Tax Revenue: $709M* | Allocation: $9.6M
Of the $9.6 million currently allocated to problem-gambling services and supports across New York state, $6 million is from mobile sports betting revenue.
North Carolina
Tax Revenue: N/A | Allocation: $3M
Mobile sports betting launched in North Carolina in June 2023, so 2022 tax revenue figures are unavailable. However, the state has already decided to allocate $2 million in tax revenue from sports betting and $1 million from the state lottery yearly towards problem-gambling resources.
North Dakota
Tax Revenue: N/A | Allocation: N/A
Sports betting is only legal on tribal lands. Allocation to problem-gambling resources, if at all, is dictated by individual tribes.
Ohio
Tax Revenue: N/A | Allocation: $14.5M
Sports betting launched in Ohio in January 2023, so 2022 tax revenue figures are unavailable (current revenue reports can be found here). Two percent of the tax on casino gaming revenue is dedicated towards problem-gambling services (those funds are allocated via a collaborative partnership between the Ohio Lottery Commission, the Ohio Department of Mental Health & Addiction Services, and the Ohio Lottery). Additionally, the Lottery also contributes funding for problem-gambling services. Here’s the breakdown for all problem-gambling fund sources: Ohio Lottery Commission ($4.5M); Ohio Department of Mental Health & Addiction Services ($7M); Ohio Casino Control Commission ($3M).
Oklahoma
This state has not legalized sports betting.
Oregon
Tax Revenue: N/A | Allocation: $18M over two years
There isn’t a stated tax rate for the Oregon Lottery’s sports betting product. The transfer amount is allocated based on a formula related to positive wagers, prizes, contract costs with DraftKings, etc., and the remainder is transferred to the state twice a year (approximately $8 million per month). Oregon’s state budget for problem-gambling resources is based on a two-year (biennium) cycle.
Pennsylvania
Tax Revenue: $144M | Allocation: $15.2M*
In the state, .002 percent from all forms of legalized gambling revenue (with the exception of lottery and iLottery revenues) goes to problem-gambling prevention and treatment services. Of the $15.2 million, $1,689,000 comes from sports-betting revenue.
Rhode Island
Tax Revenue: N/A | Allocation: N/A
Rhode Island does not receive tax revenue from sports betting, but rather a 51 percent revenue share with its gaming partners. In 2022, it received approximately $25.7 million from the revenue share. The casinos are responsible for allocating money to problem-gambling resources in an amount no less than $250,000 annually.
South Carolina
This state has not legalized sports betting.
South Dakota
Tax Revenue: $82,796 | Allocation: $244,000
The state’s problem-gambling resource allocation to the Department of Social Services is not based on tax revenue.
Tennessee
Tax Revenue: $66M | Allocation: $2.3M
Five percent of the privilege tax collected must be distributed by the council to the state treasurer and allocated to the department of mental health and substance abuse services.
Texas
This state has not legalized sports betting.
Utah
This state has not legalized sports betting.
Vermont
Sports betting is legal, but not yet operational.
Virginia
Tax Revenue: $51M | Allocation: $1.9M*
In the state, 2.5 percent of sports betting tax revenue, .8 percent from casinos, and .01 percent from horse racing machines goes to problem-gambling resources.
Washington
Tax Revenue: N/A | Allocation: N/A
Sports betting is only legal on tribal lands. Through provisions in each tribe’s compact, a tribe accrues and distributes a percentage of net win to “governmental or charitable and/or non-profit organizations” related to problem-gambling. There are some variations on what the contribution level is, based on their individual tribal compact. The most up-to-date figures can be found here.
Washington, D.C.
Tax Revenue: $3.5M* | Allocation: $70,000 over three years
From state fiscal years 2020 to 2023, the Office of Lottery and Gaming (OLG) has paid approximately $70,000 directly to the National Council on Problem Gambling (NCPG) for the use of the National Problem Gambling Helpline Network and in membership fees. OLG does not have a projection for what it will spend with NCPG during SFY 2024 (October 1, 2023 to September 30, 2024). No tax revenue was appropriated for problem-gambling—it came from the operating budget.
West Virginia
The West Virginia Lottery did not respond to Men’s Health‘s data request by press time.
Wisconsin
Tax Revenue: N/A | Allocation: N/A
Sports betting is only legal on tribal lands. While individual tribes in the state may provide funding to problem-gambling resources, the state of Wisconsin is not involved in these efforts and does not currently allocate gaming revenue funds to problem-gambling initiatives. Additionally, only aggregate gaming revenue data is collected, so the state does not have figures per casino or specific gaming activity, such as sports betting.
Wyoming
Tax Revenue: $843,171* | Allocation: $300,000
Each fiscal year, the first $300,000 of sports betting tax revenue is appropriated to the Department of Health to be distributed to the counties for the purpose of funding county health programs to prevent and treat problematic gambling behavior. The remainder is deposited into the general fund.
Additional reporting by Meredith Clark.
If you or someone you know may be struggling with a gambling addiction, contact 1-800-GAMBLER. Ready to take the next step? Book an appointment with Kindbridge Behavioral Health, and receive a 20 percent discount on your first therapy session using the code “MensHealth20.” Make sure to also include Men’s Health as the referral source on the intake form.
A version of this article originally appears in the September 2023 issue of Men’s Health.
Deputy Editor
Rachel Epstein is the Deputy Editor at Men’s Health, where she oversees, edits, and assigns content across MensHealth.com. She previously held roles at Marie Claire and Coveteur. Offline, she’s likely watching a Heat game or finding a new coffee shop.
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