Missouri sports betting ballot measure highlights national debate about tax rates

Associated Press

JEFFERSON CITY, Mo. (AP) — Missouri voters are considering whether to make the state the 40th jurisdiction to legalize sports betting. The November ballot measure highlights an emerging national debate about how best to tax the growing industry. Missouri’s proposed 10% tax rate is below the national average of 19% collected last year. Like about half the states, the Missouri measure also allows sportsbooks to deduct free bets they give customers from their taxable revenue. But some states want to make more off sports betting. Illinois, Ohio, Tennessee and Washington, D.C., all recently raised or restructured their tax rates. And Colorado and Virginia scaled back tax breaks.