Delaware Added To Exempt States List For 2018
Posted: Mon Oct 16, 2017 3:03 pm
As most of you know, several states across the country have passed Daily Fantasy Sports laws in the past year that include licensing fees and taxes on state players. Some of these states differentiate between DFS contests and season-long contests, but most lump both contests in the same wording.
This summer we paid $50,000 licensing fees to Indiana and Virginia in order to continue operating there. It was part of our corporate plan that covered all of our high-stakes games, along with CDM, LeagueSafe and our Fanball Daily games. It's a hefty fee to operate in two states, but it shows we are committed long-term to the pay-to-play fantasy sports space.
Unfortunately, there are some laws that just don't make it possible to stay in those states. We recently found that out in Delaware after the state passed a Fantasy Sports law in July. The law asks for a $50,000 licensing fee AND a 15.5% tax on net revenue for all state residents per contest. It's the highest fees any state has asked for. While we'd like to stay in Delaware, we just can't justify that cost for 2018. Hopefully the state of Delaware will reconsider these onerous fees in the future.
That brings us to six states that are exempt in 2018: Arizona, Delaware, Iowa, Louisiana, Montana and Washington. Let's hope our legislators take the time to learn more about season-long fantasy sports games and make laws that make sense while providing consumer protection. We all want consumer protection, but I'm not exactly sure that's the main focus of these bills.
Sorry folks, but we'll keep trying to be in every state possible.
This summer we paid $50,000 licensing fees to Indiana and Virginia in order to continue operating there. It was part of our corporate plan that covered all of our high-stakes games, along with CDM, LeagueSafe and our Fanball Daily games. It's a hefty fee to operate in two states, but it shows we are committed long-term to the pay-to-play fantasy sports space.
Unfortunately, there are some laws that just don't make it possible to stay in those states. We recently found that out in Delaware after the state passed a Fantasy Sports law in July. The law asks for a $50,000 licensing fee AND a 15.5% tax on net revenue for all state residents per contest. It's the highest fees any state has asked for. While we'd like to stay in Delaware, we just can't justify that cost for 2018. Hopefully the state of Delaware will reconsider these onerous fees in the future.
That brings us to six states that are exempt in 2018: Arizona, Delaware, Iowa, Louisiana, Montana and Washington. Let's hope our legislators take the time to learn more about season-long fantasy sports games and make laws that make sense while providing consumer protection. We all want consumer protection, but I'm not exactly sure that's the main focus of these bills.
Sorry folks, but we'll keep trying to be in every state possible.