Theory is becoming reality in the question of fantasy sports taxes.
Last month, there was speculation that fantasy sports websites would soon be “regulated” in some way in Connecticut. That was pretty ambiguous and could have meant anything from some basic rules to outright bans like other states have implemented.
But, knowing Connecticut and the financial calamity it calls a budget, I felt comfortable speculating that fantasy sports were safe. I wrote last month that there would be no outright ban like in New York. No, Connecticut wouldn’t be that brash – not when millions of dollars in tax revenue is on the line.
And now we’re here in April and what would you guess the Fox 61 headline is?
According to the report, the Finance Revenue and Bonding Committee passes a proposal that would add an 8.75% surcharge to all fantasy sports entries, generating $9.5 million in taxes.
If I’m being honest, I’m not super thrilled with this plan. I was hoping that the taxes would be taken from the fantasy sports operators (DraftKings, FanDuel, etc.) and not added as surcharge for us plebes trying to play games online. I mean, if the state gets the money either way, why not just take it from the business?
But a compromise is a compromise, right? At least we still get to play. At least Connecticut isn’t rushing to judgement and taking away our hobby. And at least we can still pretend that Daily Fantasy Sports have any basis in skill and aren’t just another way to gamble. Thank goodness for that, am I right?