Tax collections in September 2021 have risen once again in the state of Kentucky. The revenue has increased further after a legal settlement with an internet gambling site as stated by the administration of Gov. Andy Beshear on Monday. Receipts in the State General Fund have increased by 35%. Budget Director, John Hicks stated that the figure includes $225 million from a settlement with Flutter Entertainment, an internet gambling site. Flutter Entertainment is the holding company of PokerStars.

Reason for the lawsuit

The settlement has brought to an end a long-running lawsuit that was filed by the government. The suit was initiated to stop unregulated and untaxed gambling operations that were located outside the United States but were operating in the state of Kentucky, according to a statement released by the office of the Governor.

Revenue increase to the State excluding the settlement

Apart from the settlement, the revenue to the State Government increased by 14.8% as compared to the figures in the last month according to the Budget Director. Gov. Beshear stated that the State has a strong presence on social media. He stated that he expects the economy of the state to prosper as a result of the strong fiscal management of his administration. In January 2021, lawmakers will convene for a legislative session. In the session, the next state budget will be decided and discussed.

The General Fund

Most state services receive funding from the General Fund. The fund has grown by 20% in the first quarter of the fiscal year that is currently in progress. When adjustment for settlement is made, the fund has grown by 12.1% for the same period. Income tax collected from taxes last month was the largest amount that have been collected by the State in fifteen years. Hicks stated that tax collection has increased as corporate profits have risen. Sales tax revenues have also grown by 10.8% in September 2021. Sales tax revenues have increased by 9.9% in the first quarter of the fiscal year that is currently in progress.