Online gaming hopes dealt another blow in Indiana

The Landscape of Legal Sports Betting in the U.S.: Progress and Setbacks

As the legislative session unfolds across the United States, the dynamic nature of the gambling industry continues to evoke both optimism and challenges. Last week, several states grappling with their gambling laws saw significant developments; unfortunately, online gaming prospects dimmed in at least three states. Conversely, the momentum for legalized sports betting remains promising, especially in states like Georgia and Hawaii. Let’s delve deeper into the current state of affairs.

Alabama: A Glimpse of Possibility

While no substantial gambling bill has been filed yet, conversations are brewing between the Poarch Band of Creek Indians and state legislators regarding a potential expansion of gaming opportunities. According to 1819 News, a bill akin to last year’s proposals may be on the horizon, which could be pivotal for Alabama’s gambling landscape.

In 2024, Alabama lawmakers aimed to orchestrate a sweeping expansion of gambling, considering the introduction of a state lottery, digital sports betting, and brick-and-mortar casino establishments. A notable offering from the tribe included an amendment for a new casino in Birmingham, which faced opposition from existing entities like Birmingham Racecourse and VictoryLand Casino, despite the Poarch Creeks’ recent acquisition of the former.

Hawaii: A Step Towards Digital Sports Betting

On February 14, legislative movement in Hawaii brought forth HB 1308, which seeks to establish up to four digital sports betting platforms statewide. The bill advanced with a 6-4 vote from the house judiciary and Hawaiian affairs committee and now heads to the finance committee, while a complementary bill, SB 1569, has already cleared one senate committee.

Despite this progress, government agencies, including the district attorney’s office, have raised concerns over the potential for gambling addiction. Additionally, some lawmakers remain skeptical about the projected tax revenue of $37 million (£29.7 million/€35.7 million)—questioning its substantial impact on improving the state’s financial landscape.

While online sports betting is gaining traction, a proposal for land-based casinos in Oahu met a stark defeat in committee on February 13. SB 893 attempted to facilitate retail casinos in the Aloha Stadium Entertainment District but faced harsh critiques from developers who warned that the absence of casinos would jeopardize the project’s viability.

Indiana: A Setback for Online Gaming

In Indiana, the prospects for online gaming have dimmed as House Speaker Todd Huston announced that the proposed online gaming bill (HB 1432), which would have enabled casinos to operate three digital skins each, fell flat in the ways and means committee. Although the bill initially garnered approval from the public policy committee, a lack of consensus ultimately halted its progression.

As Huston articulated, the “moving parts” involve community impacts and the broader gaming environment, rendering the legislative path more complex. Indiana stands as yet another state in 2023 that has opted against advancing igaming legislation; Virginia and Wyoming have similarly chosen not to move forward with their proposals.

New Hampshire: Progress in Online Casinos

In a more favorable turn of events, New Hampshire’s Senate Ways and Means Committee voted 3-2 on February 12 to advance an amended version of SB 168, which proposes a statewide mobile casino with a notable 45% tax rate. Significant amendments direct 35% of the revenue from commercial online gambling to support charitable gaming initiatives.

Currently, DraftKings holds a monopoly on digital sports betting in New Hampshire, where land-based casinos are predominantly operated by charitable organizations. While DraftKings does manage retail sportsbooks at select locations, their operations are in partnership with the state lottery.

Oklahoma: Uncertain Waters Ahead

The legislative atmosphere in Oklahoma remains fragmented, with various sports betting bills progressing through different chambers, diminishing their chances of successful passage. On February 10, a house subcommittee advanced two bills aimed at putting the legalization decision to voters. Following suit, the senate business and insurance committee progressed three sports betting bills on February 13.

Among these, SB 125 proposes a framework for digital and retail sports betting contingent on at least four tribes signing model compacts. In another proposal, SB 164 would designate the Oklahoma Lottery Commission as the regulatory body for sports betting, allowing tribal partnerships with commercial entities. Moreover, SB 585 would enable tribes to engage in both retail and off-reservation digital betting, including granting a digital betting license to Oklahoma’s sole professional sports team, the NBA’s Oklahoma City Thunder.

As more states navigate the complex landscape of gambling legislation, the balance between facilitating opportunities for growth and addressing public concerns remains at the forefront. The future of legal sports betting and online gaming in the U.S. is undeniably evolving, presenting both opportunities and challenges for stakeholders in the industry.