Legalization of sports betting picks up speed in multiple US states

For nearly six years, sports betting has been expanding across the United States. The expansion started back in 2018 when the US Supreme Court ruled the Professional and Amateur Sports Protection Act (PASPA) unconstitutional. The 1992 federal law used to restrict legal sports betting to a handful of states, prohibiting the expansion and legalization of the activity across the country.

Once this law, deemed outdated by some industry analysts, was struck down, the legalization of wagering on sports started across the US. It's not a surprise that legalizing an activity that would permit wagering on different sports is a complex process. Lawmakers in each state had to assess the market, consider whether or not to offer betting on collegiate sports, establish a robust regulatory framework and at the same time, dedicate proceeds from taxes for the treatment of problem and compulsive gambling.

Pushback is not uncommon, especially from religious groups as well as organizations involved in the treatment of problem gambling. Still, several years after PASPA's repeal, sports betting is available in nearly 40 US states and its expansion continues to grow. Taxes collected from betting support initiatives that vary from state to state.

Not unexpectedly, a percentage of those taxes is set aside for treating problem gambling. Yet, many licensed betting operators also fight against at-risk and problem gambling, offering their customers robust responsible gambling tools that help them stay in control of their wagering.

While nearly 40 US states offer sports betting, the activity is still not legal in a dozen more. A handful of states currently do not have any efforts toward the legalization of wagering, while several are actively seeking ways to legalize the activity through legislative proposals.

Currently, legislators in Georgia, Oklahoma and Minnesota are pushing for the establishment of a regulatory framework that would legalize wagering on sports. Despite the efforts of lawmakers, residents in the states usually have a final say for or against the legalization of betting through voting.

Georgia pushes betting legalization through a constitutional amendment

As noted, Georgia is one of the states that is currently trying to legalize sports betting. Efforts toward legal betting, casino gambling and horse racing have been ongoing for years, but none have succeeded so far. Earlier this month, a proposal that calls for changes in Georgia's constitution picked up speed after it passed the Senate. The proposal, Senate Bill 386, sponsored by Senator Clint Dixon, who is among a list of a dozen supporters, cleared the Senate in a 35-15 vote. The next stop for the bill is the state House, where the proposal will seek further support.

If Senate Bill 386 is signed into law, it proposes the implementation of a 20% tax on sports betting revenue. The state would establish licensing for sports betting operators, permitting up to 16 licenses. Per the proposal, the Georgia Lottery would be in charge of regulating the activity, while proceeds from taxes will fund Georgia's Pre-K and higher education programs. The legalization of wagering in the state through a constitutional amendment would require approval from the state's residents. Considering that Senate Bill 386 gains further traction, Georgians may vote in favor or against the activity this fall.

Two bills propose legal wagering in Minnesota

Another state where the efforts for legalizing betting on sports gain traction is Minnesota. The start of the legislative season reignited the efforts with Senator Jeremy Miller, a Republican, filing his bill that proposes the statewide legalization of sports betting. While his previous attempt did not succeed, he hopes that the Minnesota Sports Betting Act 2.0 would bring legal sports betting for residents of the state.

In a recent interview for KARE 11 earlier this month, Miller said: "I'm feeling pretty optimistic. Minnesotans are already betting on sports. They're just doing it in other states or they're doing it illegally, so now is the time to get it done so we can regulate the market as well as help generate some sales tax revenue."

Under Miller's proposal, sports betting would be subject to a 15% tax. Based on the proposed tax rate, Minnesota is expected to benefit from approximately $60 million in tax revenue from legal betting annually.

A separate proposal also calls for the legalization of betting in Minnesota. The effort is led by Senator Matt Klein and it marks his second attempt after a previous bill did not pick up speed during the last session. Klein, who was also interviewed by KARE 11 revealed: "The numbers show that in states that have legalized and state's that haven't legalized, participation rates in sports wagering are the same."

He added that if people engage in sports betting regardless if it is legal or not, the safest thing would be to regulate the activity. According to Senator Klein, an estimated $40 million in tax revenue would be collected from legal wagering considering his bill's proposed 10% tax rate.

While the two proposals confirm the efforts of lawmakers in Minnesota, the legalization of betting would also have to be agreed with the state's Indian Tribes.

Oklahoma bill proposes legalization of sports wagering

Super Bowl LVIII, one of the most anticipated events for American sports fans, wrapped up with the win of the Kansas City Chiefs who faced the San Francisco 49ers. Across the US, millions of bettors placed their wagers on the big game, yet, residents of Oklahoma did not have that option. However, legal betting is picking up speed in the state, with a proposal filed earlier this month. The bill was filed by Senator Casey Murdock in the Senate on February 5, 2024, and has gone through its first reading. After that, on February 6, the proposal, Senate Bill 1434 (SB 1433), was referred to the Rules Committee and the Appropriations Committee.

Sen. Murdock's bill, titled "Oklahoma Education Lottery Act," proposes the legalization of sports betting and authorizes the Oklahoma Lottery Commission to oversee the activity. The commission would be allowed to "implement Sports Pools wagering in Oklahoma," according to the proposal, paving the way for a statewide expansion of the activity.

If SB 1434 gains traction, residents in the state will be able to engage in the activity as early as this autumn. Similar to Minnesota, a successful proposal for sports betting in Oklahoma would need to secure approval from stakeholders, including the state's tribes. According to the Oklahoma Indian Gaming Association, the state's Indian Tribes should have exclusive rights over sports betting in the state.

Image credit: Pixabay.com