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 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].