State Watch: Online Gambling and Amazon Tax

gamblingNew Jersey Becomes Third State to Approve Online Gambling, More to Follow

New Jersey has joined Delaware and Nevada among states that have legalized intrastate online gambling, while Massachusetts, California, Hawaii, Illinois, Iowa and Mississippi are considering similar moves.  As states look for a big payout in revenue from such measures, recent studies have analyzed past statements about state revenue from permitting casinos and found that the actual results fall far short of the projections.  Marketers look to gain from the move, as H2 Gambling Capital projects online gaming could spend over $4 billion in marketing over the next 5 years.

amazonAmazon Looks to Congress, As It Collects Taxes From More States

Through legislation and negotiation, the number of states in which Amazon is or will over the next two years collect sales tax now accounts for over 1/3rd of all U.S. states (see map).  California took in an additional $96 million in sales taxes from online retailers in Q4-2012, an impressive number but short of the $1.9 billion projected for the state by a frequently cited University of Tennessee study that also contends states nationwide are losing $11.4 billion annually.  Amazon has renewed its push for Congress to pass the Marketplace Fairness Act under which Congress would grant states the authority to compel online and catalog retailers (“remote sellers”), no matter where they are located, to collect sales tax at the time of a transaction – exactly like local retailers are already required to do so long as states take measures to simplify their tax codes.

More Info:  Analysis: U.S. states race to capture online gaming bonanza, Reuters; N.J. moving at dizzying pace to implement online gambling, Newark Star-Ledger;   “Amazon tax” payoff starts to arrive in some U.S. states, Chicago Tribune; Marketplace Fairness Act Information (Website)