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The district's chief financial officer, which also oversees the district's lottery, would be charged with approving any applications to offer sports betting and regulating the industry. David Umansky, a spokesman for Office of the Chief Financial Officer, said in an email Thursday that the office “supports the sports betting as described in the legislation.” He added that the office provided technical assistance to Evans “so that it will be able to regulate and operate the program should the council and mayor approve it in a way that maximizes the return to the district. The 10 percent tax rate offered in the bill mirrors West Virginia’s tax rate on sports wagers. Nevada, at 6.75 percent, and New Jersey, at 8.5 percent on in-person wagers, have lower rates for sports betting, while Mississippi, at 12 percent, and Pennsylvania, which is considering a 36 percent tax rate for the industry, would be higher than the district’s rate. Richard Auxier, research associate at the Urban-Brookings Tax Policy Center in the district, said D.C. lawmakers are in a peculiar spot to decide what the most appropriate tax rate for sports wagering should be. Without existing gaming establishments in the district, the council has to construct a viable revenue revenue stream with a tax rate that would not deter businesses from making their first foray into the gaming industry, he said. “When asking someone to take to on this new business, you can’t make the tax prohibitive,” Auxier said over the phone. “We’re at the vanguard of the states that are just putting this out.
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