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Sports Bettors Promised Plenty of Action in 2019

The US sports betting landscape is changing at a rate of knots. Industry aficionados anticipate that between 8 & 10 states in the US will move towards the passage of online sports betting in 2019. The tax rates on sports betting takings range from as little as 6.25% upwards of 25%, depending on the state in question.

For example, in Missouri, there are calls for fees above the current tax rate, where funds would be used for the NCAA and professional sports leagues, while other funds may be diverted towards the construction of new sporting venues. Nothing is carved in stone, since legislators will likely square off against other legislators and special interests.

Legislation is Being Drafted in over a Dozen States

From Montana in the North West to New York in the North East, scores of states are already hard at work drafting legislation for online and mobile sports betting. There is a big push towards online and mobile gaming, given that several states including Virginia and Tennessee don't have established racetracks and casinos.

Many states seem amendable to online sports betting, rather than establishing land-based venues for betting purposes. Recently, Brandt Iden from District 61 secured passage of an Internet mobile gaming bill through the Michigan state legislature. Once the governor approves it, a framework for sports betting will be in place. 2019 sports betting is looking promising with state legislators opening for business on Thursday, January 3, 2019.

What Bills Are Ready to Go?

Tennessee – HB 0001 sponsored by Representative Rick Staples (Democrat of District 15). This bill proposes a 10% tax rate on adjusted gross revenues for Internet and mobile betting. It also requests the creation of the TGC (Tennessee Gaming Commission). Sports betting would be implemented county by county, and not statewide.

Kentucky – Senator Julian Carroll filed a bill late in 2018, calling for a 25% tax on net revenues for sports betting. The bill also calls for the creation of the KGA (Kentucky Gaming Association) to oversee sports betting activity. This bill is unlikely to gain traction in the state legislature, but other representatives are also drafting bills for submission.

Virginia – HB 1638 by delegate Mark Sickles (Democrat – District 43) has requested a 15% tax on gambling revenue, a $250,000 application fee, and a maximum of 5 sports betting licenses. There are no casinos in Virginia, and tremendous ground work needs to be conducted to ensure that in 2019 sports betting gets approved.

Missouri – opposing sports betting bills have been filed in Missouri, one by Senator Denny Hoskins (Democrat – District 21) and Representative Cody Smith (Republican – district 163). Smith has proposed a tax rate of 6.25%, while Hoskins called for a 14% tax on online sports betting in Missouri.

South Carolina – much work needs to be done on 2019 sports betting bills in South Carolina. S57 by Gerald Malloy proposes a framework for amending the constitution to allow for online casinos and sports betting. A sports betting study committee needs to be established before any legislation is passed.

Clearly, there is momentum for the expansion of online casino gaming and online sports betting in the US, and already New Jersey, Pennsylvania, Nevada, and Delaware are leading the way in a burgeoning online betting market.  In 2019 online casinos and sports betting look increasingly likely in several additional states across the US.