
	Years Ended December 31,
(in millions)	2020		2019		2018
Current (benefit) provision:
Federal	$	(38.7)	$	19.2	$	10.1
State and local	3.0		6.0		3.8
Foreign	0.1		—		—
	(35.6)		25.2		13.9
Deferred provision:
Federal	28.7		16.1		35.0
State and local	1.5		15.5		2.5
Foreign	0.1		—		(0.1)
	30.3		31.6		37.4
Income tax (benefit) provision	$	(5.3)	$	56.8	$	51.3


	Years Ended December 31,
(in millions)	2020		2019		2018
Domestic	$	8.2	$	196.4	$	234.2
Foreign	(0.2)		—		(0.3)
Income from continuing operations before provision for income taxes	$	8.0	$	196.4	$	233.9

Our income tax (benefit) expense is different from the amount computed by applying the federal statutory income tax rate to income from continuing operations before taxes as follows:


	Years Ended December 31,
(in millions)	2020		2019		2018
Federal statutory tax on earnings before income taxes	$	1.7	$	41.2	$	49.1
State income taxes, net of federal income tax benefit	(0.6)		8.0		5.4
Net operating loss carry back - CARES Act	(13.3)		—		—
Windfall deduction from equity compensation	(5.1)		(5.2)		(4.7)
Non-deductible officer's compensation	7.3		5.5		2.6
Re-measurement of deferred taxes	1.9		8.3		—
Uncertain tax positions	1.7		(1.0)		—
Valuation allowance - state and foreign net operating losses	1.1		—		—
Other	—		—		(1.1)
Income tax (benefit) provision	$	(5.3)	$	56.8	$	51.3

On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was signed into law. The Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a one-time tax on accumulated earnings of foreign subsidiaries as of 2017, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property.

The CARES Act provides, among other things, that any net operating loss arising in a tax year beginning in 2018, 2019 or 2020 may be carried back five years or carried forward indefinitely, offsetting up to 100% of taxable income in tax years beginning

before 2021. The Company intends to carry back our 2020 net operating loss to claim a refund of taxes paid in a year before the statutory corporate tax rate was reduced from 35% to 21% by the Tax Act. Due to the higher statutory rate applied to this net operating loss, the Company recognized an income tax benefit of $13.3 million for the year ended December 31, 2020.

The Company recognized $1.9 million during 2020 and $8.3 million during 2019 of income tax expense from the re-measurement of our net deferred tax liabilities based on an increase in income attributable to states with higher tax rates compared to the prior period.

The Company will generate a capital loss associated with the Kater litigation. We have recorded a $29.0 million deferred tax asset without a valuation allowance for the capital loss in 2020, as we fully expect to be able to offset the capital loss with previously recognized capital gains.


	As of December 31,
(in millions)	2020		2019
Deferred tax assets:
Capital loss	$	29.0	$	—
Net operating losses and credit carryforward	9.3		3.4
Lease liabilities	7.7		6.8
Deferred compensation plans	6.7		5.9
Deferred income	5.5		4.8
Deferred liabilities	2.8		2.7
Allowance for uncollectible receivables	1.2		1.0
Deferred tax assets	62.2		24.6
Valuation allowance	(1.4)		(0.2)
Net deferred tax asset	60.8		24.4
Deferred tax liabilities:
Equity investments in excess of tax basis	121.6		114.8
Property and equipment in excess of tax basis	77.9		53.4
Intangible assets in excess of tax basis	65.6		60.2
Right-of-use assets	7.4		6.8
Other	2.2		2.0
Deferred tax liabilities	274.7		237.2
Net deferred tax liability	$	(213.9)	$	(212.8)

As of December 31, 2020, we had federal net operating losses of $3.2 million which were acquired in conjunction with the 2010 acquisition of Youbet.com. The utilization of these losses, which expire in 2025 and 2026, is limited on an annual basis pursuant to Internal Revenue Code § 382. We believe that we will be able to fully utilize all of these losses. We also have state net operating losses of $7.3 million. We have recorded a valuation allowance of $1.1 million against the state net operating losses due to the fact that it is unlikely that we will generate income in certain states which is necessary to utilize the deferred tax assets.

The Internal Revenue Service has completed audits through 2012. Tax years 2017 and after are open to examination. As of December 31, 2020, we had approximately $3.9 million of total gross unrecognized tax benefits, excluding interest of $0.2 million. If the total gross unrecognized tax benefits were recognized, there would be a $3.4 million effect to the annual effective tax rate. We anticipate a decrease in our unrecognized tax positions of approximately $0.8 million during the next twelve months primarily due to the expiration of statutes of limitation.


(in millions)	2020		2019		2018
Balance as of January 1	$	1.8	$	2.8	$	2.9
Additions for tax positions related to the current year	0.1		0.1		0.1
Additions for tax positions of prior years	2.6		—		0.1
Reductions for tax positions of prior years	(0.6)		(1.1)		(0.3)
Balance as of December 31	$	3.9	$	1.8	$	2.8