On Friday, Federal regulators allowed the controversial gambling agreement between the state of Florida and the Seminole tribe to take effect. With the approval from the feds, sports betting in the state can now begin taking bets as early as October 15, assuming the deal can successfully navigate the many hurdles that remain. The deal has received a lot of criticism from officials throughout the state, including scrutiny in the form of lawsuits. Now, a number of challenges stand between the proposed sportsbooks and the launch of sports betting in the Sunshine State.

The Deal and the Controversy

The deal under question was ratified by legislators and signed by Gov. Ron DeSantis and Seminole tribe Chairman Marcellus Osceola Jr. in May. The compact was the result of tireless efforts from law makers and gaming enthusiasts who have been pushing for some form of gaming expansion in the state over the past few years. Under the deal, anyone over the age of 21 will be able to place online wagers on sporting events through online sportsbooks or mobile applications. Brick-and-mortar sportsbooks would also be permitted at existing Seminole casinos, which currently operate on reservation lands.

Under the Indian Gaming Regulatory Act and Florida law, all gambling in the state must be conducted on reservation land. The new compact, however, would bypass this law by giving the Seminole tribe control over the servers that would be handling all the mobile and online sports wagers. With online and mobile sports betting, bettors would be able to place their bets remotely, even from the comfort of their own homes. In return for complete control over sports betting, the Seminole tribe will guarantee at least $500 million in annual revenue payments to the state for the next 30 years.

Under the new compact, sports betting can begin in October. At that time, the tribe will be able to take sports bet at the six casinos located on their tribal lands. In addition to these brick-and-mortar sportsbooks, Florida’s existing racetracks and jai-alai frontons will be given permission to develop their own mobile sportsbook apps and conduct their own sports betting using the Tribe’s servers.

The deal has caused quite the stir, as it gives the Seminole tribe complete control over sports betting through a questionable loophole in the law. So far, the deal is already facing a lawsuit that is pending in federal court. Additionally, there are at least two ballot initiatives that have been launched in an attempt to counteract the deal, offering alternative sports betting options and blocking some of the expansion of casino games. Despite these hurdles, the Department of Interior did not lend their voice to the rising concerns surrounding the compact.

The Seal of Approval

The Department of Interior officially released a 12-page letter outlining their opinion of the State’s controversial deal with the Seminole tribe on Friday. The letter revealed that the department will neither approve nor deny the compact. Yet the letter went on to state that “the Compact is considered to have been approved by operation of law to the extent that it complies with the Indian Gaming Regulatory Act and existing Federal law.” The letter is expected to be published in the Federal Register sometime next week, making the compact effective immediately after.

Bryn Newland, principal deputy assistant secretary of Indian Affairs, shared that the department’s decision should come as no surprise given the way that evolving technologies have spurred the growth of sports betting throughout the United States. Other states have faced similar questions about where betting should be permitted, given the fact that mobile wagers open the door for bettors to place their bets on land that was not previously set aside for gambling. Newland noted that many states have already enacted laws that deem a bet to have occurred at the location of the servers, meaning that Florida’s new compact would not be in violation of any existing laws.

Challenges Ahead

The Department of Interior may have paved the way for the deal to finally bring sports betting to Florida this October, but not without a catch. The department raised a few minor concerns with the compact, as detailed in the letter they released. The first of these is that the department does not support the idea that the Seminole tribe should contract with “Qualified Pari-mutuel Permitholders” in order to provide marketing for the Tribe’s sportsbook. The department was also critical of the deal’s handling of tort remedies for patrons, claiming that the proposed processes for handling patron disputes could not be upheld under the state’s existing laws.

Among those questioning the compact are some of the industry’s leading sports betting companies, including Las Vegas Sands, FanDuel, and DraftKings. The trio of gaming giants have put millions of dollars into various ballot efforts to influence the direction of sports and casino gambling in the Sunshine State. Las Vegas Sands is working to get voter approval on three new casinos, while also expanding card rooms to offer casino games. Meanwhile FanDuel and DraftKings have been working on a constitutional amendment that would allow voters to vote in favor of alternative sports betting options other than the ones made possible through the State’s deal with the Seminole tribe.

A sports betting expansion remains a priority for lawmakers and officials throughout the state, however many are fearful that if the compact could give the Seminole tribe a monopoly in an industry where everyone wants a piece of the pot. Even if the compact makes it to launch without facing significant challenges in court, it is possible that other challenges could still lie ahead.

On Thursday, the Louisiana Gaming Control Board approved DraftKings as the first fantasy sports betting company to do business in the state. The license approval has been a long time coming as the Bayou State has been working on introducing sports betting for years. DraftKings officials were ecstatic about the decision, working to go live within 24 hours of the board’s unanimous approval. The launch is a step in the right direction for sports betting in the state, and is a sign of things to come, as other companies prepare to have their licenses approved. The launch of fantasy sports is a timely one, as Louisiana also plans to introduce other forms of sports betting later this year.

Fantasy Sports with Draft Kings

Now that DrafKings’ license has been approved, the company is set to launch their renowned fantasy sports products for residents within the state. Fantasy sports differs from traditional sports betting and online sportsbooks. Instead of placing wagers on moneylines, spreads, futures, or prop bets, fans will access the DraftKings app or website to create their own rosters and compete against other players in a variety of sports. The most popular example of fantasy sports betting would be fantasy football with the National Football League. With DraftKings fantasy sports, residents of Louisiana will be able to play over an entire season, or a single day of games in the sport of their choice, including baseball, basketball, football, or even a golf tournament.

The introduction of fantasy sports betting is the first step for the Bayou State into the world of sports betting. As DraftKings becomes the first to receive a license to operate, a number of competitors are waiting to leave their mark on the gaming landscape. While Louisiana has welcomed a variety of gaming options for years, the introduction of fantasy sports and sports betting marks a significant shift that will inevitably have an impact on the state’s gaming revenue.

The Path to Fantasy Sports Betting

Louisiana is currently home to 13 riverboat casinos, which have provided an enticing gaming option for residents, as well as a tourist attraction for people throughout the United States. However, the state has recently felt the pressure to expand their gaming options, as southern states like Mississippi, Georgia, and Alabama have legalized or proposed sports betting legislation. Since the Supreme Court’s decision in 2018 to overturn the ban on sports betting, the industry has gained significant traction throughout the country, generating millions in revenue. Louisiana voters were quick to approve fantasy sports betting, as voters in 47 parishes voted to approve fantasy sports betting in November 2018, but despite the early vote to approve sports betting it has taken years for tangible sports betting to materialize.

Now that fantasy sports are set to launch, officials are setting lofty revenue goals. Gaming experts have shared that the industry could produce as much as $15.5 million in net revenue in the first year of operations. Out of that figure, nearly $1.3 million in tax revenue would go directly to the state. In the coming years, it is expected that Louisiana will continue to expand sports betting in the state. With this expansion, officials estimate that the market could fall between $2 billion and $2.6 billion over the next decade.

Looking to Expand Beyond Fantasy Sports

DraftKings isn’t the only industry leader set to launch fantasy sports in Louisiana. Earlier this year FanDuel submitted an application to the gaming board to begin operating fantasy sports options of their own, hoping to go live before the upcoming NFL season. Daily fantasy sports are just the first step for sports betting in Louisiana, as both DraftKings and FanDuel hope that their platforms will help build a strong customer base before other forms sports betting begins later this year.

Louisiana has yet to launch any brick-and-mortar or online sportsbooks within the state, but the approval of DraftKings fantasy sports license could suggest that a physical or online presence for the industry-leading sports betting company could become a reality in the future. The company has already branded sportsbook wagering at 13 casinos throughout the United States, so the transition to a physical presence in Louisiana would be a smooth one. DraftKings also has a partnership with Casino Queen, who has already announced their intentions to buy the Belle of Baton Rouge and Hollywood Casino Baton Rouge, opening the door for a DraftKings sportsbook once that deal is done. With such a strong foothold in the industry, as well as the state, it is likely that online and brick-and-mortar sportsbooks will successfully launch later this year.

On Thursday, Ohio senators proposed a sports betting bill that could bring a wave of sports betting options to Ohio residents in the near future. Ohio Senator Kirk Schuring introduced Senate Bill 176 during a press conference on Thursday afternoon, outlining the details of the bill which has taken months of planning and preparation. The Ohio Senate Select Committee on Gaming worked tirelessly to create what many state Senators believe is a comprehensive plan for rolling out sports betting in the Buckeye State. Supporters of the bill are now hopeful that legislation could be passed as early as this summer.

Details of the Bill

The proposed bill offers 40 three-year sports betting licenses; 20 of these licenses would be offered to applicants who have an existing brick-and-mortar gambling operation, such as the 11 casinos and racinos already operating in the state. These existing locations would be given permission to use their licenses to partner with popular online and mobile application sports betting companies like DraftKings or FanDuel. The proposed legislation would limit any given entity to five online licenses, to prevent them from gaining too much control over the industry within the state.

The remaining 20 licenses would be reserved for in-person sports betting operations. These licenses are called type B licenses and could be awarded to casinos, sports bars, and other locations. Professional sports teams in the state would also be allowed to apply for a license, giving them the opportunity to open live sportsbooks within their stadiums and professional venues. Other states have made similar decisions, opening the door for professional teams throughout the country to begin offering sports betting at live events.

The Senate’s proposal calls for the Ohio Casino Control Commission to regulate sports betting in the state. The Commission would also be responsible for imposing a 10% tax on all sports betting, directing the revenue toward both public and private schools, as well as gambling addiction services. The 40 available sports betting licenses come with a $1 million a-piece price tag, and the revenue generated from these would be directed to the same avenues as the tax revenue.

Pressure from Neighboring States

Since the Supreme Court lifted the ban on sports betting in 2018, more than half the states in the country have legalized or proposed sports betting legislation. In fact, every state neighboring Ohio, with the exception of Kentucky, has already legalized some form of sports betting. This has left many officials in the state of Ohio feeling as if they’re missing out on the action. Now that a proposal has materialized, it seems as though Ohio has taken inspiration from other states to help offer legal sports betting.

Schuring, who is responsible for crafting much of the Senate’s proposal, suggested that the bill is needed to prevent illegal sports betting from growing within the state. As more and more states legalize sports betting, states like Ohio become more susceptible to illegal gambling practices. Schuring feels that a well-structured proposal like his addresses these concerns and gives lawmakers the opportunity to take immediate action to help stop illegal practices, while also generating revenue for important programs in the state.

Time is of the Essence

Ohio Governor Mike DeWine has already publicly shared that legal sports betting in the state is “inevitable.” DeWine has also acknowledged that Ohio does face a challenge when dealing with illegal sports gambling, meaning that sports betting legislation could be coming sooner rather than later. After reviewing Schuring’s proposal, House Speaker Bob Cupp shared that the goal is to make a decision about the bill before they recess on June 1st.

Before the decision is made, however, there are still a number of concerns that need to be addressed. Since the proposal was announced, 14 of the state’s public universities have asked lawmakers to exempt collegiate sports from gambling in the state. If officials are able to come to a consensus, sports betting could be available by Jan. 1st. There is the chance that the passing of sports betting legislation could face a legal challenge for violating the Ohio Constitution’s ban on gambling. However, given the support and the momentum the bill has gained, it seems that some form of sports betting will be arriving in Ohio in the very near future.

A bill that could bring legal sports betting to the state of Wyoming is making its way through the House and Senate and many believe Wyoming residents to place wagers within the year. On Monday, Wyoming HB 133 passed in the Senate after receiving a 24-5-1 approval vote. The Cowboy State is typically known for its rural landscape, scenic views, and breathtaking national parks. Now Wyoming, like many other states in the country, is looking to capitalize on the budding sports betting industry.

A Bump in the Road

Wyoming’s sports betting bill has already faced a number of challenges, but it has made some significant progress after a relatively rocky start. Earlier this month, the House voted against the bill, leaving many doubtful about sports betting’s immediate future in the state. However, Rep. Landon Brown, a bill co-sponsor, called for a reconsideration vote and promised to answer any lingering questions that officials had about the proposal. Initial concerns about the bill were related to whether or not the state’s tribes would have the opportunity to voice their opinion about introducing a new form of gambling revenue into the fold. In a somewhat miraculous turnaround, the reconsideration vote passed by a count of 32-28, as representatives vowed to give tribes a voice in the new legislation.

After passing in the House, the bill progressed seemingly unopposed through the Senate Appropriations Committee and also the full Senate. A few minor amendments were made to address some concerns surrounding gaming license applicants, like those that were brought to the table regarding the state’s tribes contributing to the new legislation. Now that the bill has passed in the Senate, it will face two more votes before being forwarded to Gov. Mark Gordon. Many believe that in the coming months lawmakers will be able to iron out the rules and guidelines for legal sports betting, with residents placing wagers before the new year.

Details of the Bill

Wyoming’s sports betting bill is unique in that it exclusively offers online sports gambling. Under the bill, anyone over the age of 18 would be able to place wagers on their favorite sports teams. The Wyoming Gaming Commission will be responsible for regulating all online sports betting, which could launch as early as July 1. In a recent committee hearing, Wyoming Gaming Commission Director Charles Moore stated that a more realistic launch date would be September 1.

Bettors in the state could have access to a minimum of five sportsbook operators. In order to be considered for a license to operate in Wyoming, applicants must have active sportsbooks in at least three other states. To operate, sportsbooks must pay a $100,000 new permit fee, with a $50,000 renewal fee. All sports betting revenue would be taxed at a rate of 10%, and the revenue generated would go toward the state’s general fund and county health programs. Early estimates from the Gaming Commission suggest that the sports betting market in the state could bring in nearly $450 million annually.

Existing Gambling Laws

Those opposed to the bill argue that the introduction of sports betting could lead to significant gambling addiction in harm, while others believe the pros outweigh the cons. Sen. Jeff Wasserburger, R-Gillette was quoted in the Star Tribune suggesting that the introduction of a legal sports betting market could help mitigate issues surrounding the black market of sports betting. Others noted that the bill does more than enough to help address gambling addiction, by directing revenue toward gambling addiction programs.

As states throughout the country continue to roll out sports betting legislation, Wyoming residents may be turning elsewhere to place wagers on their favorite sporting events. Neighboring states, including Colorado and Montana, have already embraced sports betting, causing residents from Wyoming to cross state lines to place wagers. Many lawmakers in Wyoming view this as revenue waiting to be had and are looking to capitalize with this new bill.

Wyoming is already home to a number of legal gambling activities, including blackjack and poker rooms, as well as racetracks and pari-mutuel wagering. In the near future, Wyoming lawmakers hope to add online sports betting to that list.

Sports and gambling enthusiasts in Arizona have a reason to be hopeful, as two separate bills for sports betting legislation are now moving through both the House and Senate. Arizona is one of many states working to pass new sports betting legislation, as the United States continues to welcome what has become a booming industry, after the Supreme Court lifted the ban on sports betting in 2018. In Arizona, this legislation presents a unique challenge, as it needs to overcome a number of hurdles associated with the Arizona Tribal-State Gaming Compacts established in 2002. Despite these hurdles, many believe the opportunity to place wagers at Atlanta Braves’ Chase Field or at the Phoenix Suns’ Suns Arena could become a reality in the very near future.

The Tribal-State Gaming Compacts

Arizona has the most Native American land in the United States. This land makes up about 27% of the land in the state, a total of more than 20 million acres. The Indian Gaming Regulatory Act (IGRA), a federal law, gives tribes in the state the opportunity to operate casinos on these lands. The law permits gambling on Indian reservations through compacts established between the tribes and the state. There are 16 tribes in the state, and they are responsible for operating 22 casinos. All gaming revenue is required to be used for tribal governmental and charitable ventures only. Now lawmakers are weighing options for introducing sports betting into the fold.

Gambling in the state of Arizona has been limited to tribal casinos, horse and dog racing, and the official state lottery. Gambling is regulated by the state and is illegal at locations that have not been designated by the state. The Arizona Tribal-State Gaming Compacts of 2002 established rules for tribes to operate casinos on tribal lands. At the time, sports betting was prohibited throughout the state, but much has changed since then.

Two Bills with a Common Goal

The two major bills that are moving through the House and Senate are HB 2772 and SB 1797. The bills both propose event wagering and online sports betting, with up to 10 tribes and 10 professional teams licensed to provide online betting platforms. Both of these bills would open the door for online sports betting options like FanDuel or Draft Kings, and they would give fans the opportunity to place wagers at major professional sporting events. There are currently eight professional sports teams in Arizona, including franchises in the NFL, MLB, NHL and NBA.

The proposed legislation is similar to the many other plans that states across the country have rolled out, as the sports betting industry continues to grow. For example, the Washington Nationals recently announced their plans to open the first sportsbook in an MLB stadium. Many believe that these are the first steps toward a nationwide shift in the way Americans view sports betting, opening the door for many to follow the lead.

Challenges on the Path Ahead

There is still some speculation surrounding the number of licenses these bills could issue. The most confusing point of contention is that the bills allow for 10 licenses for professional teams, when there are only 8 professional teams in the state. On the other hand, the proposed legislation would only allow 10 licenses for the 16 tribes within the state. While both bills are progressing, through the House and Senate, they have faced their fair share of challenges and even more lie ahead.

HB 2772 was introduced by Rep. Jeff Weninger (R.) of LD 17 Chandler, Sun Lakes, and Gilbert. Weninger believes that this bill will do wonders to modernize gaming in the state and it will do so with the support of Gov. Doug Ducey. SB 1797 was already pulled and added as an amendment to a previous horse racing bill. After passing on a 5-4 party line vote, it moves to another vote on March 10. The current bill, which is now 1794, finds itself up against an old foe, in the form of the 2002 gaming compact between the tribes and the state. Many feel that the compact would have to be renegotiated in order for this bill to pass.

It is too early to tell whether or not either of these bills will be passed, but so far HB 2772 has gained the most traction. Once approved by the House, this bill would then go to the Senate for a vote. At the earliest, residents of Arizona could see sports betting in 2022. At this time, complications surrounding tribal gaming compacts seem to be the biggest threat to the passing of either bill. As it stands, the tribes pay roughly 8% of their casino revenue to the state. If the sports gambling bills pass, that number would decrease. The month of March will reveal whether or not either bill has the legs to move forward.

Residents of Michigan may be noticing an increase in sports betting advertisements from companies such as FanDuel, DraftKings, and other top sports betting platforms. Offers such as free sign up bonuses mark the introduction of legal sports gambling to the state.

Next Steps

A year ago, Governor Gretchen Whitmer signed legislation to legalize sports gambling and online betting in Michigan. Under the new legislation, sportsbooks have had to seek individual partnerships with brick-and-mortar casinos across the state. This may account for the long wait residents have had to endure before they can place their first legal sports bets in the state. Last month, the Joint Committee on Administrative Rules waived the 15-day review requirement for approval of the final rules regulating online gaming. It is now up to the platforms themselves to obtain official licensing and launch to bring online sports betting to Michigan. Residents will have to continue to wait for an official launch date from the Michigan Gaming Control Board. According to Executive Director Richard Kalm, the official launch date will depend on how quickly the major platforms can come under the state’s regulatory requirements. “The platform providers’ ability to meet the requirements of the laws and rules will determine which entities can be licensed for launch first,” he said.

Residents of the state can expect a similar sports betting experience to other states in the U.S. that have legalized the practice. Residents will need to be over the age of 21 to place a legal sports bet. Platforms will also utilize geolocation technology and identity verification to ensure that bettors are in compliance with state law. Once the platforms are licensed, they will offer wagers on all professional and college sporting events from soccer to baseball and basketball. The sports betting legislation provides for dedicated revenue from the practice to the state’s School Aid Fund and the First Responder Presumed Coverage Fund. An 8.4% tax will be placed on winnings from retail sports bets and a range from 20% to 28% on all online sports wagers.

A Potential Revenue Builder

Initial projections show a huge revenue boost for the state which has been hit hard by the Covid-19 health restrictions and related shutdowns. The three commercial casinos in the state are currently closed in accordance with health guidelines. The tribal casinos in Michigan are not required to adhere to those same health guidelines however, two have voluntarily closed down. The three commercial casinos, MGM, MotorCity, and Greektown, were operating under reduced capacity prior to the most recent closures. As of the year end, the revenues for all three were down roughly 54% from the same period last year.

In states where sports gambling is already legal, the data reflects that patrons are utilizing the freedom to place their bets online, in the face of casino closures. In states such as New Jersey and Pennsylvania sports gambling has made up 43% and 28% respectively of all gambling revenue. Industry experts expect that Michigan could experience a similar boost once it gets its own sports betting industry up and running.

Amid the Covid-19 related shutdowns, many states are looking for new and lucrative ways to raise state funds. While many states have approved the practice of legalized sports betting, with three new states approving ballot questions this past November, odds look bleak as to whether Oklahomans will see a change in their state law anytime soon.

Not a New Issue

The question of legalized sports betting has come up in Oklahoma before. Unfortunately support for deciding the issue has time and time again failed to gain any traction in the state legislature. The issue was placed on the back burner again as the Governor and the state legislature hashed out a hotly debated tribal gaming issue. In October, Governor Kevin Stitt elected to forgo an appeal of a federal court ruling that allowed tribal gaming compacts to automatically renew for 15 years. At the time, Governor Stitt was trying to negotiate a higher “exclusivity fee.” Currently, tribes in the state pay between 4% and 10% of gross revenue for the exclusive right to operate Class III gaming. The months long battle involved disputes between state legislators, Governor Stitt, and the federal government over the Governor’s power to unilaterally renegotiate these fees. That dispute has largely been resolved and the tribal gaming compacts are generally considered to be renewed. Perhaps this frees up lawmakers to take up the sports betting issue.

Bi-Partisan Cooperation Required

“There’s no clock ticking on when this needs to get done,” says Matthew Morgan, Chairman of the Oklahoma Indian Gaming Association. “I guess it could come up [in the] next legislative session, but it may not.” He went on, “I don’t think you’d see most tribal leaders in a hurry to get this done. It needs to be done correctly. And that’s probably going to take time.” That time may have gotten longer in the wake of the recent tribal gaming compact dispute. According to Morgan, any discussion over legalized sports betting would need to begin with a mending of the strained relationship between the Governor’s office and tribal leaders in the state. “That relationship between the governor and tribal leaders needs to be repaired,” he said.

“The governor has been supportive of negotiating with Oklahoma’s tribes in good faith to expand opportunity for all parties and remains committed to working with all Oklahomans on top ten solutions that deliver a stronger, more prosperous future for our state,” said Baylee Lakely, spokeswoman for Governor Stitt. In the Governor’s version of compact negotiations, he included a provision for “event wagering” however those provisions were rejected by the Oklahoma Supreme Court along with Stitt’s authority to unilaterally renegotiate the gaming compacts. Lakely went on, “in April 2020, Governor Stitt negotiated new gaming compacts with the Otoe-Missouria Tribe and Comanche Nation. The new gaming compacts demonstrated the state could offer unique, thoughtful opportunities for each tribe while also achieving fair-market rates, as high as 13%, for Class III gaming operations. Among other provisions, the compacts stated sports betting would be permitted to the extent it was authorized by law.”

Under current Oklahoma law, legalized sports betting would likely require approval by the legislature in order to go operational. “I’ve consistently said that I think sports betting or wagering is a potential negotiating point for the state in its compact negotiations with the tribes,” said Greg Treat, Senate Pro Tem in the Oklahoma Senate. “If an overall compact agreement is reached that is beneficial to all Oklahomans, I will consider it.”

Cautious Optimism for the Future

Morgan agreed with Senator Treat’s analysis, “I think he reads the landscape correctly. It has to be an agreement that benefits everyone.” He went on to caution that legalized sports gambling is not a silver bullet for state revenues. “You’re hoping for 3 to 4 percent at the end of the day. I don’t like people talking that ‘We’re going to get hundreds of millions of dollars’ but it would help,” he said. When asked on his opinion of the chances on legalized sports betting in Oklahoma he said, “I don’t like to predict … I think tribal leaders are willing to have that conversation, but it has to benefit everyone. And there has to be respect. And it was to be in the parameters of what our markets will bear. That conversation has to be precise of what that will look like. Sports betting, whatever form it might be … a very important aspect is: What would that revenue fee-sharing look like? Everything helps, when the state’s looking for money, when tribes are looking … something like sports betting could help.”

After two days of negotiations and deliberations, the state Senate in Massachusetts has concluded its work on the state budget. The budget, totaling nearly $46 billion, will control the fiscal year which began roughly four and a half months ago. Yet again, sports betting has been left out of the legislative list of priorities.

The budget was approved unanimously. However, vigorous debate on Wednesday evening pointed to a less than absolute partnership on the part of lawmakers to agree on what steps need to be taken to move Massachusetts out of the current economic downturn. “The budget, I think, is a really strong, responsive budget to the situation at hand and trying to really help the residents of the commonwealth, said Karen Spilka, Senate President. The next step is to send the state budget to a conference committee including a group of three senators and three representatives. They will compromise and finalize any discrepancies before putting a final version before both branches of the state legislature for a vote.

Michael Rodrigues, Chairman of the Senate Ways and Means Committee said he is optimistic that deliberations will be speedy and effectual. But many note that serious issues still remain undecided. Policing reform, climate change policy, and health care reform have all been stuck behind heated debate in various conference committees.

“I think we realize that we need to get it done. It is the middle of November and we have six or seven weeks left in the session. I believe we will get it done,” said Splika of finalizing some of these unresolved issues.

Where is Sports Betting?

One major issue on the minds of many Massachusetts residents is the legislature’s continued inaction on legalized sports betting. Minority Leader Bruce Tarr introduced an amendment to the state constitution to legalize sports betting. It was rejected outright, without a roll call vote. The amendment would have legalized sports betting in Massachusetts, allowing casinos, racetracks, and online platforms to become licensed sports book operators. His amendment set aside registration fees and other revenue from the industry to the state’s economic recovery fund. This would help jump start the recovery out of the current downturn caused by the Covid-19 pandemic.

Initial estimates state that annual state revenues from sports betting in Massachusetts could well exceed $20 million and reach as high as $35 million. Currently, the two casinos in Massachusetts add roughly $21 million to state coffers each month.

While the state House of Representatives approved legalized sports betting in an economic development bill, the state Senate has been far less keen to introduce the practice to Massachusetts.

A Call for Legalization

This past Friday, every major sports franchise in Boston as well as market leaders in the gambling industry penned a letter to the state legislature. In their letter, they attempt to get across the importance of legalized sports gambling and the benefits that Massachusetts can expect from the practice.

“Massachusetts has already lost jobs that could have been housed here by not acting sooner on sports betting. As other states legalized and launched sports betting, DraftKings has had to locate certain jobs outside of Massachusetts. The Covid-19 pandemic also has hit our casinos hard, and MGM-Springfield has had to layoff and furlough hundreds of workers in Western Massachusetts,” reads the letter. “A legalized sports betting framework would not only allow us to preserve jobs, we fully anticipate that DraftKings, MGM, and others will be creating additional jobs in Boston, Springfield, and other regional hubs. Conversely, if sports betting is not passed, we anticipate that additional jobs will be lost and others still will be housed in states other than Massachusetts.”

Voters in the state of Maryland approved ballot question number two, which authorized the inclusion of sports and event gambling to the state’s commercial gaming industry. When the votes were tallied, over 66% of Maryland voters were in favor of the sports gambling measure.

Where We Go From Here

Moving forward, the Maryland General Assembly is slated to take up the issue during their 2021 session. Still to be decided are questions such as the regulatory framework, an application and licensing system, and how the industry will be taxed.

“The devil’s in the details, and there will be many details to come,” says Gordon Medenica. Medenica is the Director of the Maryland Lottery and Gaming Agency, which is in charge of oversight and regulation of casinos and the greater commercial gaming industry in Maryland. Many in the Lottery and Gaming Agency were optimistic that the measure would pass and began drafting a loose framework for regulating the new state gambling activity. “We have a vague sense of who the players will be, how it would be structured. All of that is dependent on what the actual structure will be that the legislature will decide upon when they reconvene in January.” The legislature will still need to rule on how many licenses will be up for grabs, how the taxes will be collected and where those funds will be directed in the context of the broader state budget.

State Revenues

According to the strict text of the sports betting measure, the gaming expansion would be “for the primary purpose of raising revenue for education.” However, the language does not specify if that means the state’s Education Trust Fund, the “lockbox” where current casino and lottery tax revenues are kept, or to some, as yet unnamed, new education initiative. Current estimates state that the revenues generated by taxing sports gambling in Maryland could exceed $18 million assuming a tax rate of 20%.

“People need to understand the difference for the top line versus the bottom line,” says Medenica. “There’s a lot of wagering activity, but it doesn’t translate into a lot of hold, or profit, at the end of the day.”
In relation to the state revenues generated by lottery and casino taxes, over $1 billion, these are relatively low numbers. But both state policy makers and leaders in the casino industry agree that the push for legalized sports betting in Maryland was not about the money. The overarching goal was putting a stop to illegal operators in favor of pushing sports bettering traffic to legitimate casinos and racetracks. Once there to place their sports wagers, the hope is that patrons will stick around to gamble on races, slot machines, and table games.

Where to Wager

Another question that has been left on the table is where sports gambling will be offered. Both race tracks and casinos in the state are vying for greater control over the new activity and each feel that they should be the only situs approved for accepting sports wagers. One of the major casino operators, Cordish Gaming which owns Live Casino & Hotel in Hanover, has relaxed its firm stance against the race track industry being issued licenses. Last month, the CEO of Cordish Gaming Group, Joe Weinberg, said that the company feels that licenses “should be limited to the casinos and to the Maryland Jockey Club.” The Maryland Jockey Club operates the race tracks located at Laurel Park and Pimlico Race Course.

The Chief Marketing Officer at Live Casino, Jake Joyce, said in a statement, “the aid Maryland receives through sports betting will depend entirely on how it is implemented. The way to maximize new taxes for the Education Trust Fund is to have sports betting controlled by existing, licensed gaming entities in the state. These operators should be required to invest in facilities and systems that ensure it is done right and grows other important gaming taxes for the state.”

Live Casino & Hotel has already begun work on a brand new ‘Sports & Social’ sports betting facility. The $12 million concept will host over 50 large screen televisions, bars, casino games, and both self service terminals and live teller kiosks for placing sports bets. In addition, the casino has already announced a partnership with national sportsbook, FanDuel.

Other large state casinos have expressed an eagerness to bring the first sports book to the state. Horseshoe Casino in Baltimore, is looking forward to applying for a sports betting license. The casino announced, “we look forward to working with state legislators in a program that will ensure Maryland casinos remain competitive with those in neighboring states in order to maximize revenues for Maryland schools.”

An Online Option

According to Medenica, the expectation is that a significant portion of sports betting transactions will be conducted online. However, the legislature has yet to signal a legal framework is being created as of yet. “The experience in New Jersey, where sports wagering is already legal, suggests that 80% of sports betting occurs on mobile, and is dominated by some very large players.” Medenica went on, “certainly, it is our sense that it would be best to allow major licensees to offer some mobile alternative.” While the New Jersey model is acting as a guide, Medenica is pooling the collective knowledge of twenty-one states, including Washington D.C., in helping to determine what decisions will work best in Maryland.

One of these decisions will be how many “skins” a sports betting operator will be allowed to host. While New Jersey allowed each operator to conduct three different skins, according to Medenica, “a good lesson we have learned is that’s probably way too many.”

What to Expect

When the first legal sports bet will be placed in Maryland depends largely on how fast state legislators reconvene. In addition, exactly how comprehensive that legislation turns out to be will go a long way in determining the length of the licensing process. Medenica thinks that Maryland residents will be able to walk into sports books by the Fall of 2021.

“I think if we had a very clean, straightforward bill that just granted the right to the casinos and the horse tracks, all of them already have relationships with back end betting providers and they could get up and running very soon. But to the extent that the bill becomes very complex and involves a lot of licensing and compliance procedures, that certainly will add costs and time and delay.”

Maryland, South Dakota, and Louisiana have joined 21 other states in legalizing sports betting. For big names in the industry like FanDuel and DraftKings, this represents a windfall and an exciting new chapter in the legal sports wagering market.

Louisiana

Voters in Louisiana approved a sports betting proposition on their ballot this past week. This marks the first such move in the state towards a change in the law.

The gambling industry in the state is moving quickly to get the first sports book up and running. Plans have already begun at L’Auberge Casino. “It’s where our guests could come, place their wagers, watch games, enjoy some food, and relax. We would build out a whole new section for that,” said Kim Ginn, the General Manager of L’Auberge Casino. She went on, “It’ll go in the legislative session starting in April. Once it’s made into law, then rules have to be made by the Louisiana Gaming Control Board, which controls us.”

The state legislature approved the bill early in 2020 to add the sports betting question to this year’s ballot. The final tally saw fifty-five out of Louisiana’s sixty-four parishes voting for the measure. However, it will be some time before the first wagers are cast. Mike Noel is the Lieutenant Colonel for the Louisiana Gaming Control Board. He doesn’t believe residents will see open sports books opened until at least 2022. “It’s just the way the process works. The legislature has to lay out the framework, and then the rule-making process is a four to six-month process. Once that happens, the entities that wasn’t to participate will have to apply and get licensed,” says Noel.

Maryland

Maryland voters responded positively to question 2 on this year’s ballot, approving the expansion into legalized sports betting. Maryland’s ballot measure added the proposition that revenue generated from the sports gambling industry would be funneled primarily into the state’s public education system.

The measure passed with nearly 70% approval in the state. In addition, the Maryland legislature has expressed near unanimous support including Governor Larry Hogan.

“Question 2 provides a critical revenue source for public education without raising taxes on families and businesses. This initiative builds on the very successful ‘Hogan Lockbox,’ which puts casino revenues in a lockbox dedicated to education. We are already funding our K-12 schools at record levels, and this is another way to ensure that is the case for years to come,” says Governor Hogan.

Maryland State Senator Craig Zucker posits the new sports gambling measure could bring in millions to the state education coffers. “The lowball assumption is that Maryland will get an additional $20 to $40 million in additional revenue from sports betting,” says Zucker.

South Dakota

Constitutional Amendment B will bring sports betting to Deadwood, South Dakota. Nearly 60% of South Dakota residents approved the measure to authorize sports betting in both Deadwood and the state’s Native American reservation casinos.

“Obviously, we’re encouraged by this. This is pacing a little bit better than we did in 2014 with craps and roulette,” said Mike Rodman. Rodman is the Executive Director of the Deadwood Gaming Association. He went on, “we’re thankful to the voters of South Dakota for giving Deadwood this opportunity. We will reach out to the administration to see if they want to start working on some draft legislation for the 2021 session.”

The state constitution currently authorizes Keno, craps, roulette, slot machines, and limited card games in Deadwood casinos. The recent ballot measure now allows the state Legislature to include sports wagering as yet another form of gambling in Deadwood.