The Montana Senate Business, Labor and Economic Affairs Committee recently heard testimony on a bill sponsored by state Senator Mark Blaisdel that would legalize, regulate and tax betting on college and professional sports events. Wagers would have to be placed at bars with full liquor licenses. The bill was written in consultation with the state Department of Justice, companies that provide gambling machines to casinos and the Montana Tavern Association. If it passes, the measure would take effect in June 2020, giving the state time to write rules and taverns time to install and test machines, Blaisdel said.
Sports book companies that install equipment in bars would manage the computerized wagering operations. The bars would receive 5 percent of the net sports book income and operators would pay an 8.5 percent state tax on adjusted gross betting receipts.
Ronda Wiggers, a lobbyist for companies that provide electronic gambling machines to bars, said limiting sports betting to bars would ensure only people of legal age could gamble.
However, others testified that the state would lose revenue if sports betting only is allowed in bars. Gaming Industry of Montana Executive Director Neil Peterson said, “We would suggest that if you want to maximize revenue, allow mobile betting to happen on a statewide basis.” He also questioned whether small bars could afford the technology that would ensure betting only took place in bars.
Montana Tavern Association lobbyist John Iverson said sports betting would not generate a lot of money for the bars, but customers might stay longer and spend more on food and drinks. He added low-cost technology is available to enforce in-bar betting.