Three bills that would legalize sports betting are moving through the Montana legislature without much opposition. It is easily conceivable that all three could become law, allowing sports book to be offered both by the Lottery, through private sports betting operators and by expanding existing horse-based betting systems to other sports.
The sponsors say they don’t have any problems with all of them being passed and signed by Governor Steve Bullock.
Montana is one of 40 states considering sports book legislation this year. It was one of the four states that the Professional and Amateur Sports Protection Act exempted when it was passed by Congress in 1992. So it actually wasn’t affected last May when the U.S. Supreme Court declared PASPA unconstitutional, which started the race among the states to get their own laws in place.
Rep. Ryan Lynch, author of House Bill 725, told Montana Sports “I think it’s an exciting time for sports betting in Montana. There are a lot of proposals that are being debated up here, and we’ll see what comes out in the final days.” The state’s legislative session ends April 20.
Lynch’s bill would authorize the Lottery to offer sports book using a contractor. It would utilize establishments where Lottery machines already operate and pay commissions to the hosts, such as a bar or restaurant. The House approved his bill by a vote of 88-10 three weeks ago and now it is being heard in the Senate Committee on Business, Labor and Economic Affairs.
Also in that chamber is Senate Bill 330, by Senator Mark Blasdel, which would issue licenses to private sports book operators who could deploy kiosks at bars or other locations where gaming is already legal. It is relatively easy in Montana to get a license to offer slot machines, and often gas stations have them. Blasdel’s bill would put the regulation of sports book under the Board of Horse Racing, which is part of the Department of Commerce.
Blasdel, interviewed by MTN News, said “I think for the taverns, it’s an exciting thing for them to be able to have another additional way to bring people into their establishments, maybe a different form of customer that they traditionally don’t have.” The senator added, “It’s just a different form of entertainment for people and there’s been a lot of interest in it.”
He added, “You can bet on anything from season-long championships, to daily sports, to actual in-game betting, based on plays, and so forth. And this is across the board, from every sport, from football to tennis to NASCAR.”
Blasdel’s bill sailed through the Senate two weeks ago and is likely to be heard in the House floor beginning this week.
Both lawmakers note that sports betting is already widespread in the state, but flies under the legal radar. If it’s going to happen anyway, they reason, the state should collect some taxes from it and control it.
Rep. Brad Tschida’s House Bill 475 would expand on the existing pool-based horserace betting systems and apply them to additional sports. He told the Great Falls Tribune, “For those of us who don’t bet, it really has no impact on us,” He added, “For those who like to bet, it’s an opportunity from them to do that in a way that is organized and well-maintained.”
Although he has his own bill, Tschida also supports Lynch’s bill. He told the Tribune, “The reason the Lottery makes sense is that it’s already existing. So we have existing infrastructure that’s been already laid out across the state. What this does would allow the Lottery to authority and the opportunity to offer sports wagering within communities.”
Blasdel doesn’t expect the state to get much of a windfall from sport betting since often as much as 95 percent of the revenue goes to the winners, although it would tax the activity at 8.5 percent.
Analysts estimate that between them the bills could raise up to $2 million a year for the state’s general fund. Lynch wants to earmark some funds for a state scholarship fund aimed at encouraging STEM (Science Technology Engineering Math.)
During the Senate hearings on Lynch’s bill senators wanted him to detail how House Bill 725 would address problem gambling. Lynch noted that the bill has language that would allow it to support problem gaming initiatives.
Brad Longboard of the Montana Council on Problem Gambling testified to provide information to the senators, rather than as an opponent of the bill.
