New Proposed Legislation Would Tax Online Poker Tournaments in Nevada

This past Tuesday, Gaming Control Board Chairman A.G. Burnett introduced a new bill titled Nevada Senate Bill 9. This bill was introduced to the Senate Committee on Judiciary and, if passed, would require online poker operators to pay a tax for online poker entry fees.

Currently, any cash that is received by an operator for an entry fee for tournaments or contest is not considered part of gross revenues. Burnett says that the cost for online poker operators to run online tournaments is much less than what brick-and-mortar operators incur. Burnett argues that the exemption for poker tournaments should not apply online.

If the bill is approved, any fees collected by operators in conjunction with online poker tournaments will be subject o a tax of 6.75%, which is the same rate that that is going for gross gaming revenues fr online ring games. With this change, the tax model of the state would be closer to the European tax model.

The 6.75% tax rate is quite low, especially compared to other areas around the world. France is on the high end at a 40% or more tax rate while other countries have twenty to thirty percent tax rates. Even New Jersey has a higher proposed tax rate of 15%.

Nevada is gearing up and trying to be the leader in online gambling legislation and regulation but they may be given a run for their money. New Jersey is close and one politician in the state has commented that the state will be the leader for online gambling in the United States.

The new bill will have an impact on not only the state of Nevada, but other states as well. Iowa, California and Hawaii all have gambling bills up for debate and the decision of Nevada should weigh on their legislative decisions as well.

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