- The bill would lift the exemption for paying tax on tournament fees that B&M casinos currently enjoy.
- The change would bring Nevada’s taxing model for online poker closer in line with those of European tax structures.
Nevada Senate Bill 9, introduced to the Senate Committee on Judiciary on Tuesday by Gaming Control Board Chairman A.G. Burnett, seeks to add online poker tournament entry fees to the list of activities for which online poker operators are required to pay tax.
“Cash received as entry fees for contests or tournaments” are currently excluded from Nevada’s definition of gross revenue.
According to Burnett, the costs traditionally associated with running online tournaments are much less than their brick-and-mortar counterparts.
The current exemption for poker tournaments—designed to offset operator expenses such as utilities and floor space—do not apply online, Burnett argues.
If the bill passes, fees collected in conjunction with internet poker tournaments would be subject to the same 6.75% tax rate on gross gaming revenues that will be applied to online ring games. The change would bring Nevada’s taxing model for online poker closer in line with those of European tax structures.
