Best of the States
AP analysis: Sports betting has not been the jackpot some states expected
When the Supreme Court allowed all states to offer betting on sports, some lawmakers across the country saw an opportunity: Here was a way to bolster state budgets with revenue from an activity that was already happening in the shadows. But an AP review showed that actual tax revenue has yet to match expectations in the majority of states that legalized sports gambling.
State government team reporter Geoff Mulvihill, based in New Jersey, and Rhode Island statehouse reporter Jennifer McDermott looked through monthly state revenue reports and then compared the tax revenue generated to the original estimates in the legislation that authorized sports betting. They found that in four of the six states that legalized it last year – Rhode Island, West Virginia, Mississippi and Pennsylvania – tax revenue was far below what the state had projected it would be.
The revenue story was the latest in a string of distinctive stories from reporters working the sports betting beat. Many of the stories, including the state revenue piece, have been accompanied by a data set compiled by Mulvihill that tracks every piece of legislation related to sports gambling. It is being made available to all AP customers who subscribe to our data distribution platform and has been promoted to local reporters as a way to add context to their stories.
For revealing the difference between lawmakers’ promises on tax revenue and the reality, Mulvihill and McDermott win this week’s Best of the States prize.