Same bets, different tax: where should a sportsbook spend its marketing?
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The prompt
Northline Bet (a fictional online sportsbook in the United States) takes USD 500 million of bets a month in each of two states and keeps 10 percent of the money bet. It gives away USD 10 million of free bets a month in each state, and payments, data and platform costs are 12 percent of net revenue. It spends USD 6 million a month on marketing in each state. State A taxes 51 percent of gross gaming revenue; State B taxes 20 percent. What does each state earn Northline, and where should its next marketing dollar go?
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3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
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