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State Of States 2019: There’s No Template For Legal Sports Betting

Five states have legalized in 2019, and no two have done it the same way

Jill R. Dorson by Jill R. Dorson
June 18, 2019
in Regulation
(Shutterstock)

(Shutterstock)

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Six months into 2019 and with many legislative sessions adjourned or winding down, we thought it would be a good time to take stock of what’s happened so far. Five states have legalized sports betting this year with two more on or near the cusp (New Hampshire, Colorado).

During that same time frame, Pennsylvania launched its mobile piece, Rhode Island legalized mobile sports betting and it targeting a launch by the NFL season, and New York and Washington, D.C. rolled out actual and proposed regulations, respectively, with an eye toward offering legal sports betting by the start of the NFL season.

Lawmakers in Illinois, Indiana, Iowa, Montana and Tennessee all legalized, in very different ways. Tennessee became the first state to pass mobile-only sports betting legislation while contentious talks in Illinois ultimately resulted in sports betting being tacked on to a massive capital bill. New Hampshire will likely be the sixth state to legalize — a bill that includes state-wide mobile passed the Senate last week and is making its way to Governor Chris Sununu’s desk. There seems to be no question he will sign it. Colorado lawmakers passed a bill that will send the decision to legalize or not to the voters in November. And we’ll keep an eye on Massachusetts, Michigan and Ohio.

Let’s take a look at the details of each new law, and when it’s likely you’ll be able to place a bet.

Illinois

After months of education, discussion and negotiation, Representative Mike Zalewski’s sports betting bill ended up being tacked on to a $12 billion capital bill that was years in the making. Legal sports betting looks different than what Zalewski (D-District 23) first put on the table. In particular, potential mobile-only operators (capped at three) will have to wait an additional 18 months to launch after physical sportsbooks do. That was a “compromise” after Rush Street Gaming, which contends that daily fantasy and sports betting giants DraftKings and FanDuel have been operating illegally in Illinois for several years, wanted the pair to wait three years to launch.

Tax rate: 15 percent

State-wide mobile: Yes, with in-person registration required for first 18 months

“Official league data” required for in-game wagering: Yes

Operator licensing fees: Sliding scale that tops out at $20 mm for online only master licenses

Legal to bet on college games?: Betting on Illinois college sports teams and college sporting events in Illinois is prohibited.

Potential launch date: 2020

Indiana

In the end, the first state to include the phrase “integrity fee” in legislation (in 2018) didn’t. Hoosier State lawmakers were at odds about sports betting through much of the session, and mobile sports betting was the hot-button sports betting issue within a much wider ranging gambling bill. The question of whether or not to allow state-wide mobile was removed from the bill late in the session, but added back in on the eve of the vote.

Tax rate: 9.5 percent

State-wide mobile: Yes, with remote registration

“Official league data” required for in-game wagering: No, but gaming commission could choose to require it

Operator licensing fees: $100,000 with $50,000 annual renewal fee

Legal to bet on college games?: Yes

Potential launch date: Fall 2019

Iowa

Iowa’s new sports betting law has the the lowest tax rate of the year — the 6.75 percent rate on gross sports wagering revenue matches Nevada, which most operators would consider to be their best-case scenario. In Iowa, sports betting will be legal at physical locations as well as via mobile/online platforms. In the 11th hour, a proposal was made to require the use of “official league data,” but the amendment was struck down before the vote.

Tax rate: 6.75 percent

State-wide mobile: Yes, with in-person registration required until Jan. 1, 2021

“Official league data” required for in-game wagering: No

Licensing fees: $45,000 with $10,000 renewal fee

Legal to bet on college games?:: Yes, but no prop bets on collegiate athletics

Potential launch date: Fall 2019

Montana

The first to legalize in 2019, sports betting in Montana won’t look much like it does in other states. Three sports betting bills were initially proposed and two passed both chambers, but Governor Steve Bullock vetoed one, meaning the state lottery will have at least a temporary monopoly on sports betting. Patrons will be able to place bets at lottery kiosks around the state and there will be no mobile piece to speak of.

Tax rate: Any net revenue after prizes, commissions and operating expenses are paid.

State-wide mobile: No

“Official league data” required for in-game wagering: No

Licensing fees: TBA by State Lottery and Sports Wagering Commission

Legal to bet on college games?: Yes

Potential launch date: Fall 2019

Tennessee

Nashville, Tenn. (Shutterstock)

 

Despite having a governor who is opposed to any kind of gaming expansion, Tennessee lawmakers don’t want casinos dotting their landscape, but do want sports betting, so the Volunteer State legalized online/ mobile-only sports betting legal in April, i.e., with no brick-and-mortar or retail component. The law becomes effective on July 1. Tennessee also became the first state to mandate the use of official league data. The Volunteer State has no gaming infrastructure, so it’s tough to tell how quickly sports betting could launch; regulation responsibility belongs to the Tennessee Lottery Corporation.

Tax rate: 20 percent

State-wide mobile: Yes with remote registration

“Official league data” required for in-game wagering: Yes

Licensing fees: $750,000

Legal to bet on college games?: Yes, but no prop bets on colleges

Potential launch date: TBA

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Jill R. Dorson

Jill R. Dorson

Jill has covered everything from steeplechase to the NFL and then some during a more than 30-year career in sports journalism. The highlight of her career was covering Oakland Raiders during the Charles Woodson/Jon Gruden era, including the infamous “Snow Bowl” and the Raiders’ 2003 trip to Super Bowl XXXVII. Her specialty these days is covering sports betting legislation across the country. You can reach Jill at jill@bettercollective.com

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