Ohio Lawmakers: No Thanks on Doubling Wagering Tax
Ohio Gov. Mike DeWine Feb. 3 stunned the gambling industry by announcing his goal of doubling the legal sports betting tax for the second time in less than two years. Should DeWine’s plan become law, operators would pay a 40 percent tax on gross gaming revenue.
The state initially had one of the lowest digital wagering taxes in the U.S. when it launched on New Year’s Day 2023. At 40 percent, it would be the second priciest competitive market for betting companies to do business in. New York, with a 51 percent tax is the highest, and since last summer, Illinois operators have been paying on a sliding scale between 20 percent-40 percent.
But the industry might catch a break in Ohio. Lawmakers aren’t all in with DeWine’s proposal.
“We’ve not even finished two football seasons, and now we’re talking about quadrupling that tax?” Republican Rep. Brian Stewart told Cleveland.com Feb. 4. “I think that’s going to generate a lot of discussion. I don’t think anything’s dead on arrival, but I do think that any time you’re talking about tax increases in the Republican Party, that’s going to get a skeptical eyebrow raise.”
Said Republican Rep. Bride Rose Sweeney: “We are still realizing what that actually means to the (sports betting) industry. So, I think we have a lot more vetting (to do).”
When DeWine’s proposal became public, gaming consultant Brendan Bussmann told iGB, “We have known since day one that DeWine has hated sports betting. He apparently failed Economics 101. Definitely a head-scratcher for a Republican that continually thinks doubling the tax on a business not once, but twice, is a logical answer.”
It appears Ohio legislators agree.
Mississippi Lawmakers Advance Digital Sports Betting
The Mississippi House of Representatives Feb. 3 approved HB 1302, a bill that would allow for statewise digital sports betting. The bill Feb. 4 was transmitted to the Senate, where similar legislation stalled in 2024.
According to the Sun-Herald, bill sponsor Casey Eure told the House that Mississippi “leads the nation in illegal online sports betting on Google searches.” He also said that in states with a legal framework, law enforcement can fight illegal operators and fewer are active. In addition, he pointed to lost revenue for Mississippi, which is surrounded by legal sports betting states.
“But most notable … to Mississippi is our neighboring states,” he said in introducing the bill. Eure then shared the reported annual tax revenue for Kentucky ($35 million), Louisiana ($64 million), North Carolina ($96 million) and Tennessee ($97 million). “So that just goes to show you that we’re losing a lot of tax revenue to these online sports betting, illegal sports betting like Bovada,” he said.
Eure’s bill is updated vs. the 2024 version. In the 2025 proposal, funding accounts by credit cards would be prohibited and each land-based casino would be entitled to partner with two digital platforms vs. one.
Eure also addressed fears of cannibalization, which are prevalent among medium to small casinos. HB 1032 includes a $6 million fund that will be used to supplement smaller casinos that see a dip in land-based revenue in the first five years that digital betting is live.
The state legislature is scheduled to be in session until April 6.
Hawaii Senate Committee Advances Digital Sports Betting Bill
A Hawaii senate bill that would legalize digital sports betting moved forward Feb. 4, according to iGB. But not convincingly.
The Senate Economic Development and Technology Committee advanced SB 1569, which would allow for statewide mobile sports betting. It is the second wagering bill to gain traction in the Hawaii legislature in a week.
On January 31, the House Economic Development and Technology Committee moved HB 1308 forward. That bill is the house companion to SB 1569. In both chambers, the committees unanimously moved the bills, but several lawmakers did so “with reservations.” That suggests that the bills won’t have a smooth ride through the legislature.
The sports betting bills are two of at least eight gambling bills in the state legislature. Among them is a House bill that would only allow for gambling in designated tourist zones, a restriction not seen elsewhere in the U.S., but proposed and in practice in several Asian countries. There are also bills that would regulate and tax daily fantasy sports.
Missouri Sports Betting Draft Rules Sent to Governor
Missouri Gaming Commission (MGC) chair Jan Zimmerman told KSHB that draft sports betting rules have been sent to the governor’s office for approval. The MGC declined to release the draft rules to iGB, but did confirm by e-mail Feb. 4 that the agency is aiming for a June launch.
“Part of our timeline that has been created by the staff, that was discussed with the Commission at our last meeting, was to get those preliminary rules to the governor’s office,” Zimmerman told KSHB. “We’ve met that date, on (Monday, January 27), those rules went to the governor’s office.”
Once the rules are approved by Governor Mike Kehoe’s office and the secretary of state’s office, a 30-day public comment will open.
Maine Regulators Pull Retail Sportsbook License
Oddfellahs, the only in-person sportsbook in Maine, lost its temporary license with the Super Bowl just days away, reports News Center Maine. According to the report, Oddfellahs has been operating under a temporary license, which is good for up to four years, but the Maine Gambling Control Unit denied its application for a permanent license. Per News Center Maine:
The “license was what’s called a Commercial Track license. It was issued five months ago because (Michael Cianchette) owns a horse racing track in Cumberland. He claims the state told him the license was transferable and would also cover Oddfellahs in Portland, even though it operates as an off-site restaurant and bar.”
The Gambling Control Unit denied the license because Oddfellahs is not a commercial track, and it says the company cannot use the same license.
BetMGM Betting on Premium Players
Entain and MGM Resorts’ joint venture, BetMGM, expects player acquisition rates to slow as it looks to benefit from a premium player base placing higher value bets.
While the group posted a falling EBITDA, once again in the negative, in its FY24 results on Feb. 4, it pointed to a “year of investment” which sought to increase player value and active users of its product.
Speaking to analysts following the group’s full-year earnings call Feb. 4, BetMGM CEO Adam Greenblatt said during the year the focus had been on investing in its iGaming strengths and refining its marketing, attribution, CRM and segmentation models.
These helped to drive a stronger performance in the latter part of the year.
Monthly users in the operator’s fourth quarter were up 55 percent year-on-year. Greenblatt said this was achieved without the addition of any new states. Total monthly active users for the year hit 946,000, up 14 percent year-on-year.
However, while BetMGM touted its player growth, Greenblatt noted that it would not continue to see the same high rates of player acquisition going forward.
Instead, the group’s growth plan is to focus on and benefit from a player base that is going through premiumization, meaning their player value is increasing.
Texas Governor Open to Gambling, But That Might Not Matter
On Feb. 4, Texas Gov. Greg Abbott said during a podcast that he doesn’t “have a problem with online sports betting.” But he’s not the Texas politician who has the power to call – or block – a vote in the senate, reports iGB.
Abbott, who has been the governor since 2015, said during his re-election run in 2021 that he wasn’t opposed to gambling in his state. According to the Texas Tribune, he and former house speaker Dade Phelan went “further” in their support.
The sticking point in the Lone Star State has long been Lt. Gov. Dan Patrick. He has consistently said that he will not call a vote on an expansion of gambling in Texas unless there is a Republican majority to support it.
There is nothing to indicate that Patrick has changed his position. Because of that, Abbott’s comment is rhetoric and likely nothing more.
New Alabama Senate Leader Open to Gambling
The Alabama State Senate Feb. 5 unanimously selected Garlan Gudger as its new president pro tem. And that could bode well for the chances of a gambling expansion. Gudger told the media site AL.com that he is concerned that Alabama is losing money to surrounding states that have legal gambling. But he also said that he won’t rubber stamp a gambling expansion.
“So I’m going to have to look at that bill whenever it does get filed, or if it gets filed,” he told AL.com. “And then from that, we’ll take it apart piece by piece and make sure it’s the right thing to do for Alabama.”
Alabama’s legislative session opened Feb. 4 and as of Feb. 6, no bills that would introduce gambling had been filed.
Gov. Kay Ivey did not address gambling in her state of the state address on Feb. 4. She has previously been open to adding gaming to the Alabama landscape.
Georgia Bill Would Legalize Retail Sports Betting, Casino
Per Casino Reports Feb. 5, four Georgia senators dropped a resolution that would send the decision to allow in-person sports betting and casino. According to the bill, a minimum of eight casino licenses would be available and both sports betting and casino gaming would be taxed at 20 percent of gross gaming revenue.
The proposal specifically bans “off-site casino gambling activities.” It would also create a new gaming commission. According to SR 131, the first $2 billion in tax revenue would be split among Georgia counties and five percent of tax revenue would be earmarked for problem and responsible gambling initiatives.
The question that would be posed to voters reads:
( ) YES Shall the Constitution of Georgia be amended so as to authorize the General
( ) NO Assembly to provide by law for the operation and regulation of sports betting and casino gambling activities in this state?
The proposal needs a two-thirds majority to pass in both chambers and would go on the November 2026 ballot.
MLB Umpire Fired Over Sports Betting Violation
Major League Baseball umpire Pat Holberg was fired Feb. 3 for sharing his online gambling accounts with a friend, according to the Associated Press. An MLB investigation did not reveal that Holberg bet on or “manipulated” games, but it did show that Holberg’s friend placed 141 baseball bets during an 18-month span. The friend wagered nearly $214,000, and won about $35,000.
Holberg did not officiate during the 2024 season. MLB opened its investigation in Feb. 2024 and MLB senior vice president of on-field operations Michael Hill recommended Hoberg be fired May 24, according to the AP.
“The strict enforcement of Major League Baseball’s rules governing sports betting conduct is a critical component of upholding our most important priority: protecting the integrity of our games for the fans,” Manfred said in a statement. “An extensive investigation revealed no evidence that Mr. Hoberg placed bets on baseball directly or that he or anyone else manipulated games in any way.”
Holberg took responsibility for what he called his own “errors in judgement.”
He went on to say, “Those errors will always be a source of shame and embarrassment to me. Major League Baseball umpires are held to a high standard of personal conduct, and my own conduct fell short of that standard.
“That said, to be clear, I have never and would never bet on baseball in any way, shape, or form. I have never provided, and would never provide, information to anyone for the purpose of betting on baseball. Upholding the integrity of the game has always been of the utmost importance to me. I apologize to Major League Baseball and the entire baseball community for my mistakes. I vow to learn from them and to be a better version of myself moving forward.”
In Other News …
Delta SkyMiles members may soon be able to play free-to-play games in flight, Covers reported Feb. 3. Delta and DraftKings last month announced a new partnership. Seatback screens could soon feature DraftKings branded blackjack and other casino games.
