In North Dakota, state Rep. James Kasper sponsored two sports betting companion bills that passed in the House late last month. In the Senate, the Joint Finance and Taxation Committee recently held its first hearing on the bills. HCR 3032 would place legalizing sports betting on the November 2022 ballot, leaving it up to voters whether they want to change the state constitution. HB1234 would create a structure for legal retail and mobile sports betting. If both bills pass in the Senate, legal sportsbook options could be available in North Dakota in August 2023.
The sponsor of House Bill 1234, state Rep. James Kasper, introduced it to the committee and then offered some amendments to it. These included banning credit cards for placing bets and excluding all North Dakota college sports. The bill also proposes a 24-month period before mobile sportsbooks could launch, giving retail-based sports wagering kiosks a head start to help local businesses. The mobile app wouldn’t be available until 2025. The bill proposes low tax rates of 6.75 percent on retail wagering and 10 percent on online betting.
Kasper stated, “If mobile and retail start at the same time, then the mobile will garner 80 percent to 90 percent of the market, because there is no overhead and no catch-up and no lag time. In order to provide an opportunity for local business development this bill provides for 24 months for kiosks to get started.”
Commenting on Kasper’s amendments, Dave Weiler, a lobbyist representing Western Distributing Company, said, “It’s a bill that now has nothing good in it for North Dakota. Very seldom have I ever seen a bill get changed to the detriment of North Dakota citizens, North Dakota business owners and in favor of out of state companies.”
DraftKings also isn’t happy about the new bill. The sports betting behemoth opposes prohibiting the use of credit cards on mobile platforms, claiming that removes a player’s ability to gamble on sporting events. DraftKings also opposes the two-year launch delay while retail sports wagering kiosks ramp up. And it opposes the ban on local college sports, stating that would make bettors continue to make illegal offshore wagers.
Tribal leaders have expressed concern that legalizing sports betting could further hurt business, leading to permanent closures. Spirit Lake Casino Gaming Director Collette Brown said adding another gaming option would harm business. Collette Brown, gaming executive director for the Spirit Lake Nation, said the tribes, represented by the United Tribes Gaming Association, are opposed to statewide mobile gaming. She said expanding gaming yet again is just “adding salt to our wounds. We have seen a 65 percent decrease in our Class III revenues and we cannot sustain that anymore. Any further expansion of gaming in the state will definitely cause my tribe to close our entertainment destination and casino.”
Forecasters estimate the new sports betting industry could produce about $7.2 million in tax revenue for the state per biennium. The North Dakota legislature is in session through April 28.
