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Our Opinion: Tax fantasy sports,online gambling

That failure doesn't bode well for the Legislature's much larger challenge in the next session — reacting to a U.S. Supreme Court decision clearing the way for legalized sports betting in the states. Even though a joint legislative committee spent two years studying the issue, the Legislature couldn't agree on a bill levying taxes on fantasy sports betting by the deadline. A Senate measure applying a 12.5 percent tax that could have raised an estimated $2 million in revenue annually, according to the Boston Globe, did not get House approval, even though there is support for such a tax in that body as well. Fantasy sports taxes in most states are 15 percent. The Legislature did find time this summer to pass a measure permanently legalizing daily fantasy sports in the state. Boston-based Draft Kings, a fantasy sports industry heavyweight, lobbied for the legalization and against the tax, arguing that fantasy sports is a game of skill, not a game of chance. A small minority of upper echelon fantasy sports players actually make a good living at it, but the vast majority of players are enthusiasts, not experts, and rely on good fortune to win a few dollars. The Supreme Court's legalization of sports betting across the nation is expected to unleash a flood of dollars that will dwarf that generated by fantasy sports. Draft Kings has moved aggressively to target this market, becoming the first in the business to roll out on an online gambling program in New Jersey, which quickly legalized sports betting in an apparent effort to compensate for state revenue lost to the decline of the state's casino industry. Draft Kings will assuredly want to start an online gambling game in Massachusetts.

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