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[highnote]

Attorney Nelson Rose, an expert in gambling law, recently wrote about these fees. The math doesn't work. 1% is way too high because the margins on sports betting are so small.

http://www.gamblingandthelaw.com/imp...ports-betting/

The most recent official figures show that for the 12 months ending in November 2017 there were 195 sports books in Nevada. They won a total of $233,299,000. Dividing the total win of approximately $233 million by the number of sports books, 195, means the average Nevada book wins about $1.2 million a year.

The reported win percentage was 4.82%. This includes parlay cards and parimutuel bets, where the house keeps a much larger share. Still, using the reported hold of 4.82% means the average sports book in Nevada accepts almost $25 million a year in bets ($1.2 million divided by 4.82%).

Put that average sports book in Indiana and you get $25 million in bets a year, revenue of $1,040,000 ($25,000,000 times a hold of 4.16%). Out of that win of about $1 million a year, the Indiana sports book would have to pay $250,000 to the leagues, $62,500 in federal taxes and $96,200 in taxes to the state. This leaves the sports book again with revenue of about 2.5% of wagers or $631,300. Out of that $631,300, the operator has to pay all other expenses, including other taxes, such as property and income taxes.