On May 3, 2019, the Sports Wagering Lottery Amendment Act of 2018, authorizing licensed and regulated sports wagering in the District of Columbia, went into effect.
Once a licensed operator has secured a Sports Wagering Operator license (Class A and Class B) through the Office of Lottery and Gaming (OLG), the operator must be registered with the Office of Tax and Revenue (OTR) and will be responsible for:
- Filing a monthly tax return (FR-426G); and
- Paying a tax equal to 10 percent of its Gross Sports Wagering Revenue (the total of cash or cash equivalents received from sports wagering minus the total of: Cash or cash equivalents paid to players as a result of sports wagering; cash or cash equivalents paid to purchase annuities to fund prizes payable to players over a period of time as a result of sports wagering; the actual cost paid by the license holder for any personal property distributed to a player as a result of sports wagering, excluding travel expenses, food, refreshments, lodging, and services.)
Operators registered with OTR may add Sports Wagering as a tax type through its web profile at MyTax.DC.gov. The tax returns will be due on the 20th of each month and must be filed at MyTax.DC.gov.
Operators that are not registered with OTR must first complete a New Business Registration Form (FR-500) on the online portal, MyTax.DC.gov. Once the notice of registration is received, operators must then sign-up/create a MyTax.DC.gov account. Operators must select Sports Wagering Tax, and any applicable DC taxes, such as, Franchise, Partnership, Ballpark Fee, Wage Withholding, Sales & Use, and Personal Property.
To learn more about sports wagering, visit OLG’s website at https://dclottery.com/default.aspx.
For questions regarding the sports wagering tax, please contact OTR’s Assistant General Counsel Andrew Reiter at [email protected].