Poole College of Management accounting professors Nathan Goldman and Christina Lewellen help explain the tax outcomes and consequences of online gambling. The online gambling service provider would then be subject to the 14% privilege tax on the $10 million net earnings, yielding $1. For example, the privilege tax is projected to provide $42. However, in the early years, this number is expected to be much lower due to the deductions for bonus and promotional credits: $13. How will the tax proceeds be used? Losses in excess of winnings also cannot carry forward to future years. Even a traditionally conservative state like Texas is considering legislation allowing it. While most of the states that have legalized online sports betting impose a privilege tax near the 14% suggested by North Carolina, others, like New Hampshire (51%), New York (51%), and Delaware (50%), are much higher. faux saint laurent bag