taxes for thee , Not for me
BY THE NUMBERS
FLIPPINg thE FLooR
The July 2024 edition of the Game Performance Report produced by
Eilers & Krejcik Gaming and Fantini Research featured an operator poll with 80 respondents , asking what percentage of owned slots each expected to replace in the next 12 months . Conversion kits and lease replacements were not included in operators ’ responses .
The most common answer was 5 percent , from 27 percent of operators . Overall , the weighted average was 5.45 percent . Sixteen percent of respondents plan to replace more than 10 percent of owned games , followed by 8 percent and 1 percent ( both garnered 9 percent of responses ).
Only 4 percent of respondents indicated that they would not replace any owned games in the next year . Of all the totals listed , the lowest replacement level to garner responses was 9 percent , with only 3 percent of operators .
To obtain a copy of any Eilers & Krejcik reports , contact Rick Eckert at reckert @ ekgamingllc . com .
Percentage (%) of the casino-owned slot machines on your casino floor you plan to REPLACE over the next 12 months
taxes for thee , Not for me
DraftKings sent the sports betting community aflame on August 1 when it announced plans to implement a surcharge on winning bets placed in markets with multiple operators and tax rates above 20 percent beginning January 1 , 2025 . After its competitors declined to follow suit , the plan was ultimately scrapped August 13 .
The criteria outlined above applied to New York ( 51 percent tax rate ), Illinois ( sliding scale from 20 percent to 40 percent ), Pennsylvania ( 36 percent ) and Vermont ( 20 percent ). The bookmaker said that in Illinois , winnings would have been subject to a 3.2 percent surcharge , to be treated as a separate transaction . Some back-of-the-envelope math estimated that the bookmaker could have reaped more than $ 200 million in additional revenue from the surcharge , but it was unclear how that revenue would be categorized or whether regulators would have had to approve the surcharge in the first place .
Bettors , analysts and consultants alike voiced various opinions on the charge , ranging from abhorrence to intrigue . The announcement shed light on the future of tax rates in the sports betting industry , especially with some of the largest potential markets — including California , Texas and Georgia — still yet to be legalized .
50
40
30
20
10 0
51 %
20-40 % 36 %
20 %
NEw YoRk ILLINoIs PENNsYLvANIA vERmoNt
6 Global Gaming Business SEPTEMBER 2024