Would You Bet on the Commonwealth?
NCAA Basketball March Madness is one of the most well-known athletic tournaments in the world. It’s popularity in the U.S. has sports bettors watering at the mouth. The event is the most bet on sporting event in the country according to sheer dollars wagered. With that being said, only 4% of money bet on the tournament is seen as being legally bet in sports books in Nevada. That 4% is equivalent to $80-$90 million wagered on the event. The FBI estimates that around $2.5 billion is bet on the event annually. This means that of the possible $2.5 billion bet on the event, none of that money will be seen by the IRS.
Doesn’t it make sense for states to reap monetary benefit from a portion of this money being bet illegally? Making betting legal would allow for winnings to be taxed which allows the local governments to see potentially large revenues.