Quote:
Originally Posted by Pokeraddict
There is a huge difference between those fees. I only commented on the $50k fee. The $50k only applies if a company does not have long term thinking. The renewal fee is $5k per year. A site pays $9,500/yr over a 10-year period. How much lower do you want that to be? They are already paying $0.00002 in licensing per potential customer (based on the estimate of 4.7 million Indianans of age) and they aren't exposed to any other taxes.
There are costs to the state for licensing these sites. Any suggestion that taxpayers subsidize that would have caused friction in getting it passed. Sure, the state may make half of that original licensing fee but I doubt much profit will come out of the $5k annual renewal. If five sites get licensed, we're talking about half of a state employee's annual income for a process that will require state labor.
A B&M shop will pay far more than $9,500/yr in taxes and licensing. They will pay more than $50k if you include property, sales and corporate/personal income taxes.
If $50k is too much of an initial investment when renewals are $5k, what do you suggest? It is already lower than most other businesses in the state pay. It is hard to think there would have been any appetite to just give these sites a freebie.
No one is looking at a free lunch for DFS competitors, so that"freebie" argument is a red herring. You may not realize that a fair amount of capital investment and work goes into creating and operating a gaming or DFS site. Nothing "free" about it, and much of the costs come before the doors even open.
You seem enamored of license fees as a barrier to entry for "unworthy" operators, rather than go for more reasonable matters which might actually protect players directly ....
I would suggest that an open market be allowed to compete in State X, with licenses readily available to all providers, but with a security posting equal to a rolling 180 days of deposits from State X players less cashouts to State X players. That was historically a way to protect banks and VISA from credit card fraud.
Paying $50K or $5,000,000 to a State agency does nothing more than protect certain operators from competition. You've seen how well that has worked in online poker licensing in the US.
Ongoing "compliance" costs to the State can be funded by taxes on profits earned within State X.