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The Impact of Free Play Tax Deduction Limitations on Sportsbook and State Tax Revenue

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Public Finance Review

Published online on

Abstract

Public Finance Review, Volume 54, Issue 5, Page 765-792, September 2026.
The impact of limitations on free-play tax deductions has remained understudied despite calls for research on the topic. I leverage the expanding legal sports betting market in the United States and substantial tax policy variation among states to examine ...