Deducting promotional spending from taxable revenue evolved this year into something that comes up every time a sports betting bill is discussed.
Some states allowed for significant deductions when they passed their bills, including Colorado and Virginia. But both states since changed their rules in the past year and saw tax revenue increase, which could convince other states to change their ways.
The first month of limited promotions for Virginia sportsbooks could at least encourage legislators in promo-rich states thinking about a change.
Sports betting tax revenue jumps for Virginia
Virginia is still about two months away from showing the true impact of its policy change. September’s results, which will show what limited promos in Virginia looks like with NFL betting, will not be available until November.