Almost half of U.S. states now have some kind of legal sports betting, and more are expected to sign off on the wagers this year.
The drive by lawmakers to sanction more legal markets is due in part to the economic crunch caused by Covid-19. It hasn’t gone unnoticed by lawmakers that New Jersey hit almost $1 billion worth of sports wagers in December alone. New York Governor Andrew Cuomo has finally agreed to permit mobile sports wagers in the state, rather than seeing New Yorkers cross the border into Jersey to bet. And now, even Texas may be interested in legal sports betting.
Let’s take a look at U.S. states where sports-betting legislation is in the news.
CONNECTICUT
At his State of the State address on January 6, Connecticut Governor Ned Lamont called for legalization of sports betting. Proponents say the state’s residents can already cross the state line into Rhode Island to place sports bets and do so illegally within state lines.
Lamont told lawmakers, “I am working with our neighboring states and look forward to working with our tribal partners on a path forward to modernize gaming in our state, and working with the legislature on legalization of marijuana.” He added, “Sports betting, internet gaming, legalized marijuana—they’re all happening all around us. Let’s not surrender these opportunities to out-of-state markets or, even worse, to underground markets.”
Connecticut is far behind neighboring New Jersey, which has created a sports betting market that closed in on $1 billion for the month of December.
So far the state has not yet reached an agreement with the two gaming tribes, the Mashantuckets and Mohegans, who insist on sports betting exclusivity, claiming this is guaranteed by their tribal state gaming compacts.
But other entities are claiming a place at the table, including OTB and the lottery. The city council is scheduled to hear an update on the project at its next meeting.
GEORGIA
Late last year, the Georgia House Regulated Industries committee passed a resolution that would have allowed casino gambling, horseracing and sports betting in the state. However, the bill stalled due to Covid-19 pandemic. But this year, House Tourism and Economic Development Chairman Ron Stephens said a stand-alone sports betting bill has a real chance at success.
Stephens said sports betting legislation “is the easiest one to pass. It clearly does not require a constitutional amendment,” just a simple majority, unlike horseracing or casino gambling. “We’ve gotten some opinions from the people that write our bills that sports betting doesn’t require a constitutional amendment, and it’s something people are doing in Georgia already. It’s just a matter of us giving the Georgia Lottery Commission direction and authority they already have,” he said.
Stephens said he intends to file three gambling measures: a bill legalizing sports betting and two separate resolutions requiring the state constitution be amended to allow horseracing and casino gambling. For more than six years, expanded gambling supporters have not been able to gather the two-thirds majorities required in the House and Senate to approve constitutional amendments and place them on the statewide ballot.
Billy Linville, a lobbyist for the Georgia Professional Sports Integrity Alliance, a coalition of four of Atlanta’s professional sports teams, said his group believes the legislature will pass a sports betting bill this year. “A new state law with strict regulatory requirements will bring significant new revenue to the state, strengthen HOPE scholarships and protect the integrity of professional sports, a multibillion dollar industry in Georgia,” Linville stated.
Developers still will push for Stephens’ destination casino resort legislation. Wynn Development President Chris Gordon said, “We believe a gaming resort in Atlanta would be a significant generator of tourism and will generate much-needed tax revenue for the state of Georgia. Consequently, we support legislative efforts to allow a gaming resort and legalized sports betting, which of course will ultimately be decided by the people of Georgia.”
Proponents said casino gambling could create thousands of jobs and generate hundreds of millions of dollars for the HOPE scholarship, funded by the Georgia Lottery. However, conservative groups and religious organizations oppose expanding any form of gambling, which they say preys on the poor and leads to crime and the breakdown of the family.
KENTUCKY
Kentucky state Rep. Adam Koenig recently introduced House Bill 241, which would legalize sports betting at the state’s racetracks and professional sports venues with 50,000 seats or more, such as the Kentucky Speedway. The bill also would allow online sports wagering and online poker, as well as daily fantasy games. The Kentucky Horse Racing Commission would have regulatory authority. Currently the bill is in the Committee on Committees, which assigns legislation to committees. Through January 11, House Bill 241 listed 17 sponsors, both Republicans and Democrats.
The bill is similar to a measure Koenig sponsored last year which advanced through the Kentucky House Licensing and Occupations Committee but never made it to the House floor.
Koenig’s bill, however, may have to take a back seat to protecting historical horseracing machines. The legality of the machines has been an issue since the state Supreme Court in September ruled at least one type of the machines is not parimutuel and therefore illegal.
In his State of the Commonwealth and Budget address on January 7, Governor Andy Beshear called on state lawmakers to back legislation that would protect historical horseracing. “Speaking of laws that unduly restrict us from growth and innovation, it is time to legalize medical marijuana, pass sports betting, and save historic horse racing.”
The machines have dramatically helped the state’s horseracing industry by enhancing purses, among other benefits. Sports wagering also is expected to support Kentucky racing.
MASSACHUSETTS
Legalized sports betting may get a second chance in the Massachusetts legislature this year.
It was left out of the recently passed economic development bill, despite arguments that sportsbook would rake in up to $35 million in tax revenue annually. The senators who killed the proposal wanted a narrow focus on immediate relief for those impacted by the pandemic: families, small businesses and communities.
Some senators who opposed sports betting for that bill might be open to a standalone bill. Rep. John Barrett III told the Berkshire Eagle, “A lot of reps were bothered” by the Senate’s inaction. He called sports betting, “a no brainer to the House.”
Senator Eric Lesser, who opposed putting sports betting in the relief bill, said he “would personally like to see legislation move forward in this new session now that we have time to focus on it.”
Senate Ways and Means Chairman Michael Rodrigues, said “the time is close, and we are going to be tackling this issue.” Senator Adam Hinds added, “I do expect it to be an ongoing conversation and one of the early issues addressed in this term.”
Others, like Rep. Paul Mark, remarked that Massachusetts is in a race with other states in the region to develop sports betting as a revenue source, to keep that money in the state. He told the Eagle, “We need to do it in a manner that protects the integrity of the sporting competitions while also offering addiction services and reducing opportunities for abuse.”
The state’s residents reportedly spent $680 million on offshore sports betting in 2016.
MICHIGAN
Fifteen licensed online sportsbooks or platforms are ready to go live as soon as the Michigan Gaming Control Board gives the word, following a few days of final testing. MGCB Executive Director Richard Kalm said that word could come as soon as January 19. Ads touting pre-launch offers from the various providers have been ubiquitous on television and the internet.
Kalm said, “I know it seems slow to the public, but from our perspective, the regulatory perspective, we just cannot launch new types of gaming until we have rules in place to protect the integrity of that gaming.”
Retail sportsbooks opened in March, just before the Covid-19 pandemic hit. Casinos and their sportsbooks closed for four and a half months, reopened at reduced capacity and then shut down again from November 18 through December 22. Observers expect legalized online sports betting to help make up for lost tax revenue for the city of Detroit and the state.
Michigan has licensed 12 tribal casinos and the three Detroit casinos to host online sports betting. Citizens Research Council of Michigan President Eric Lupher said, “Between the tribal casinos and the Detroit casinos, online sports betting could generate somewhere between $16, $17 and as much as $20, $21 million of tax revenues. The Detroit share of that we’re looking at somewhere between $2.3 and say $3 million.”
MichiganSharp.com Analyst Geoff Fisk stated, “I think we’ll see upwards of 90 percent of sports betting handle come from mobile betting. Online casino gaming will really take off as the industry matures and the online platforms add more games.”
A major issue for regulators is security, Kalm said. Players need to be 21 to wager and set up an account with one of the licensed platforms. He said, “Since you’re not in person making the bet, we have to be very careful that we know the customer and we also know the location of the customer. All those testing procedures, the identification, geolocation, all the things that have to be in place before we could launch online takes a considerable amount of time.”
NEW HAMPSHIRE
New Hampshire state Rep. Tim Lang has filed a bill that would remove the cap on the number of retail sportsbooks in the Granite State and legalize in-play wagering at brick-and-mortar casinos.
He had previously tried to pass a similar bill last year when the Democrats controlled the House, but now that all three branches of the state government are in Republican hands he feels his bill has a better chance.
Feeling he has the wind at his back, Lang says he also plans to eventually file an iGaming bill.
His bill, HB 330, is a short bill whose only difference from his original is that this sentence has been removed: “No more than 10 sports book retail locations may be in operation at any given time.” Despite that, Lang doesn’t think the state will ever have more than that number due to its small population.
His bill is headed for the Ways and Means Committee and Lang is confident of approval. He has until June 30 to do that. Once passed it becomes law 60 days later.
Ten New Hampshire cities have approved hosting retail sports betting. The Brook casino became the first to host in-person sports betting in the state, operated by DraftKings in August 2020. DraftKings online/mobile wagering went live in December 2019.
NEW YORK
New York Governor Andrew Cuomo has included mobile sports betting in his proposed budget. Under his proposal the New York State Commission would issue an RFP for sports betting operators or platforms to offer online sportsbook in the Empire State.
Operators would need to team up with existing commercial casinos.
In his budget proposal, Governor Cuomo declared, “At a time when New York faces a historic budget deficit due to the Covid-19 pandemic, the current online sports wagering structure incentivizes a large segment of New York residents to travel out of state to make online sports wagers or continue to patronize black markets.”
The governor said he considers New York to be the largest sports betting market in the U.S. “By legalizing online sports betting we aim to keep millions of dollars in revenue here at home, which will only strengthen our ability to rebuild from the Covid-19 crisis.”
The New York State Gaming Commission has reported a 210.6 percent increase in sports betting revenue in December over the previous year.
Gross gaming revenue from sportsbook was $2.3 million in December, compared to $740,418 in the same month in 2019.
OREGON
A bill has been filed in the Oregon legislature that would legalize mobile and retail sports betting under the Oregon Racing Commission, removing it from the aegis of the Oregon Lottery.
Currently the only sports betting in the state is the ScoreBoard app operated by the Oregon Lottery. HN 2127 does not spell out that the ScoreBoard app would go away, but does shift the regulator from the lottery to the commission.
The bill is being pushed by Governor Kate Brown and most observers feel it will open the marketplace up to more competition since it doesn’t limit the number of operators, and only charges $50,000 for a license.
The bill would also expand sports betting from pro sports only to college sports. However it requires the use of official league data, which would bring the state in line with practices in Illinois, Virginia, Michigan and Tennessee.
It allows the prohibition of certain bet types upon the request of sports governing bodies.
It also authorizes an up to 10 percent tax on gross gaming revenue and allows those 18 and above to place wagers. Currently 21 and above is the legal age.
The launch of ScoreBoard by the Lottery in October 2019 has reportedly been a money loser for the first year, and has been plagued with technical problems.
TEXAS
Even Texas, historically one of the states most resistant to expanded gaming, is now making inquiries about sports betting to states like New Jersey, where it’s already up, running and growing.
According to Legal Sports Report, the office of Texas Governor Greg Abbott has contacted lobbyists and regulators of such states to tap their wisdom on the best way to legalizes sportsbook.
Reportedly backing the effort are Jerry Jones, owner of the Dallas Cowboys, Dallas Mavericks owner Mark Cuban and Houston Rockets owner Tilman Fertitta. All three have their fingers in sports betting. Jones owns a percentage of DraftKings, Fertitta owns the highly successful Golden Nugget online operation, and Cuban has invested in the esports betting platform Unikrn, as well as other sports betting ventures.
Under one proposal, as many as 20 sports betting licenses would be made available for various franchises and racetracks in the Lone Star State, putting the teams in the position of a casino. Texas has no commercial casinos.
So far no sponsor exists for such a bill, although a draft is being written. Any change to the state’s gaming laws would require an amendment to the state constitution, which could only be done by a vote of the people.
The state is looking at a fearsome budget deficit due to the effects of Covid-19, which is why lawmakers who would traditionally oppose any kind of gaming expansion might look favorably at such a proposal this time.
After California, Texas is the largest undeveloped sports betting market in the U.S.
Potential opponents include the Oklahoma tribes that operate a large casino just across the state line and colleges that have sports programs.
A further complication is a strong effort to lobby for legalization of casino gaming that was launched by Las Vegas Sands billionaire Sheldon Adelson, who died this week. Adelson and his wife donated $4.5 million last year to the Republican party last year.
VIRGINIA
Virginia Lottery Executive Director Kevin Hall recently said bettors may be able to legally place online wagers in time for the Super Bowl.
“We’ve moved pretty far down the field in building out the sports betting program. We’re close to the end zone and once we begin to issue the first of the licenses and once the sportsbooks feel like they’re ready to go, they can go live,” Hall said.
Twelve online sports betting licenses will be issued by the Virginia Lottery, which will oversee and regulate the industry’s launch and operation. Bets on professional sports events will be taken pre-game and in-game, and only pre-game for college teams. Betting will not be allowed on Virginia college teams or the Olympics. Participants must be at least age 21 and physically located inside Virginia.
The General Assembly legalized sports betting last year, but it’s taken time It’s no secret that betting has been happening here already.
“There’s no reason to be naive there’s sports betting going on already. It’s one-on-one or in an office setting or probably much of it is being done with offshore sports books,” said Hall.
Analysts forecast sports betting revenue will bring in $400 million in wagers in 2021, with 15 percent going to the state in tax revenue. A portion of that amount will go toward problem gambling services. Hall stated, “I think it’s important Virginia has developed a program in a responsible way to make sure consumers are protected and can have some confidence that the sportsbook is operating within the rules and that there are some reasonable guardrails to ensure, for instance, the under aged aren’t using the apps and that there are some resources available for people that feel like they might be getting in over their head.”
