Is Illinois Preparing For The Removal Of The Federal Ban On Sportsbetting?
House deputy majority leader files placeholder bill
It appears that Illinois is about to join around 10 other US states in preparing legislation to allow sports betting in the event that the US Supreme Court rules in favour of New Jersey and against the federal Professional and Amateur Sports Protection Act (see previous InfoPowa reports).
State lobbyist Steve Brubaker tweeted Thursday that a new bill, HB4214, has been filed by House deputy majority leader Rep. Lou Lang under the title Legalization and Regulation of Sports Betting Act.
Not much is known about the bill because it at present has little content and could be regarded as a placeholder pending the US Supreme Court decision, expected later this year.
A growing number of states have introduced bills with similar objectives in order to be ready to move should the restrictions of PASPA be lifted and the estimated $150 billion sports betting market opened up through wider state regulation and licensing.
InfoPowa readers may recall that hopes were high at the end of 2017 for an online casino and daily fantasy sports bill which was approved by the Illinois Senate but ran out of time in the House.
In related news, media reports from Indiana at the end of December quote state Rep. Alan Morrison as saying that he intends to introduce a House bill that would make betting on sports legal in Indiana if the U.S. Supreme Court rules in favour of New Jersey.
The Indianapolis Star report claims that more than 10 states have passed or are considering anticipatory bills to make sports betting legal if the Supreme Court opens the gates.
Morrison told the newspaper that he expected opposition to such a measure from the NCAA, commenting:
“I understand where they’ll be coming from. But it’s also important for the NCAA to understand that the landscape of gaming is changing throughout our country. I think they would hopefully have some understanding that Indiana would have rights just like the other states.”
More Moves On Sports Betting Legalisation In Indiana (Update)
State Senate companion bill S405 filed Friday
Indiana‘s moves to position itself to take advantage of a possible overturn of the Professional and Amateur Sports Protection Act (PASPA) by the US Supreme Court (see previous InfoPowa reports) developed further Friday when S405 was filed in the state Senate.
The bill is being seen as a companion for a House bill which Rep. Alan Morrison is expected to file early next week and that is reportedly broadly supported by the state’s land casino operators.
The Senate bill has broad provisions tasking the state gaming commission with delivering appropriate regulations and infrastructure in the event that PASPA is overthrown and the US sports betting market opened up to more states.
It confines sports betting operations to land casino operators already licensed in the state, and sets a 90 day deadline on implementation following a favourable US Supreme Court decision in the New Jersey case. Punters will have to be at least 21 years of age.
Importantly, the Senate proposal permits interactive and mobile activity…and it does not specifically prohibit betting on collegiate events.
On the licensing fees, S405 proposes $500,000 or one percent of revenue, whichever is greater, an annual $75,000 fee, and annual state tax rate of 9.25 percent of GGR.
Until the Morrison bill is filed in the House, its provisions are not entirely clear, but the Representative has verbally revealed his thinking on the content, indicating that it is broadly similar to S405.
Morrison emphasised that appropriately geo-fenced intrastate interactive and online provisions are important, as are fees and taxes that are not too high and discouraging for operators – he hinted that these financial burdens would be no heavier than those presently applied to land casino operators.
Indiana Sports Betting Bill Launched In The House (Update)
Rep. Alan Morrison launches HB1325…with a little sugar for integrity
Indiana Representative Alan Morrison kept his December promise to launch an online and retail sports betting bill Monday, introducing to the House HB1325, which proposes to legalise intrastate sports betting contingent on the US Supreme Court overturning the provisions of the Professional and Amateur Sports Protection Act.
His bill follows a similar measure – S405 – launched earlier in the Indiana Senate (see previous InfoPowa reports).
Initial reports are that the bills are broadly similar, confining sports betting operations to land casino operators already licensed in the state, and setting a 90 day deadline on implementation following a favourable US Supreme Court decision in the New Jersey case. Punters will have to be at least 21 years of age.
Importantly, the Senate proposal permits interactive and mobile activity…and it does not specifically prohibit betting on collegiate events.
On the licensing fees, S405 proposes $500,000 or one percent of revenue, whichever is greater, an annual $75,000 fee, and annual state tax rate of 9.25 percent of GGR.
Morrison’s bill has an important difference, however; HB 1325 contains an “integrity fee” of 1 percent of total betting handle, in addition to a 9.25 percent tax on sportsbook GGR. This integrity payment is destined for sports governing bodies in general, and is motivated by a desire to combat any danger of illegal collusion or match fixing.
The professional sports leagues – most of which have fought wider sports betting availability in the States tooth and nail for years – are the likely beneficiaries of such fees, which could be considerable.
Morrison acknowledged to reporters that he had obtained input from the National Basketball Association in drafting his measure, and was receptive to advice and language that may make the sports leagues “more comfortable”.
The integrity fee would be a permitted tax deduction for operators, which softens the impact a little, but operators will no doubt point to the present 6.75 percent of GGR tax paid by Nevada sportsbook operators, along with a much-contested 0.25 percent of handle that the federal government levies.
Major Sports Betting Expansion In The States Hangs In The Balance
Up to 18 US states are reportedly set to introduce bills to regulate sports betting this year…but it all hangs on the US Supreme Court’s decision in the New Jersey appeal expected by June this year
If the US Supreme Court finds in favour of New Jersey and overturns the restrictive Professional and Amateur Sports Protection Act later this year, a predicted 18 US states will be prepared to introduce licensed and regulated sports betting.
That’s the assessment of consultants Eilers & Krejcik Gaming, who predict that 18 states will introduce bills to regulate sports betting this year, with 11 having a good chance of passing legislation…and that’s just the minimum expected.
The reportedly $150 billion plus market will be too attractive for states to pass up on, promising increased tax revenues for those who get on board.
“Assuming a Supreme Court decision or action by Congress permits it, we could see the largest simultaneous expansion of regulated gambling in U.S. history with sports betting in 2018,” said Chris Grove, the company’s managing director.
States and private companies in the U.S. and abroad are already moving quickly to position themselves for a favourable ruling, Groves reveals, listing Massachusetts, Rhode Island, New York, New Jersey, West Virginia, South Carolina, Georgia, Florida, Illinois, Michigan, Iowa, Minnesota, Louisiana, Mississippi, Oklahoma and California.
Among those, the most likely to pass measures this year are Massachusetts; Rhode Island; New York; New Jersey; West Virginia; Ohio; Michigan; Illinois; Oklahoma; Kentucky and Indiana.
Indiana and Kentucky already have introduced bills, along with similar measures passed in Pennsylvania and Connecticut (see previous InfoPowa reports).
Grove said Delaware is arguing it doesn’t need to pass a bill due to gambling legislation already on the books, and added Mississippi may not need to pass a bill. He said an argument has been made that that state’s fantasy sports bill also authorised sports betting.
States that are classed as unlikely to take advantage of a more liberalised sports betting environment in the USA are Tennessee; Alabama; Arkansas; Texas; Kansas; Nebraska; North and South Dakota; Wyoming; Utah; Idaho; Alaska and Hawaii.
David Schwartz, director of the Center for Gaming research at the University of Nevada Las Vegas, confirmed that the Eilers & Krejcik projections are in line with the historical trend of states turning more to gambling.
Sports betting is seen as most likely to be offered through commercial or tribal casinos, or state lotteries. Some analysts have opined that a favourable Supreme Court ruling could prompt a rapid expansion of internet betting.