The legal sports betting industry continues to see a slew of movement across multiple markets. The North Carolina Senate is set to vote on sports betting next week, Illinois passed two sports betting bills, and Tennessee’s governor signed a new sports betting tax bill into law. Let’s take a look at all the recent happenings in the industry.
North Carolina Senate On The Clock
The North Carolina Senate has been overseeing legislation to bring mobile betting sites to the Tarheel State. Measure HB 347 has already begun making its way through committee, advancing earlier in the week.
The Senate is now expected to put the bill to a vote on Tuesday, May 30, according to reports from WRAL. HB 347 already advanced out of the NC House and awaits a Senate vote. If approved by the Senate, the measure would return to the House for another vote as the Senate added amendments.
Three amendments were added to the bill. One amendment raises the set tax rate from 14% to 18%. Another allows for parimutuel horse racing betting. The third amendment prohibits operators from deducting sportsbook promo offerings from revenue.
“They’re reasonable changes,” said Berger, a Rockingham County Republican. “I think they’re changes that make the bill better.”
If the bill manages to pass in the Senate and in the House, it will reach Gov. Roy Cooper’s desk. Mobile sports betting would be legal in North Carolina following his approval.
Illinois Pushes For Responsible Gambling
Two Illinois online sports betting bills have passed this week.
SB 1508
SB 1508 requires sportsbooks to alert bettors of their wagering activity. After every 10 bets, users will get a pop-up alert on their app of how much they wagered online.
The measure has successfully advanced in both the House and Senate. The House amended the initial bill and then passed the measure with a 78-30 vote on May 19. Due to the amendments, the Senate had to vote again. The measure was successful in advancing again on Wednesday. Gov. JB Pritzker will almost certainly sign the measure into law.
SB 0089
SB 0089 successfully passed in both chambers. The measure extends the in-state requirement for college sports betting. Fans are only allowed to wager on in-state games at physical locations.
The measure extends the requirement through 2023-2024. Lawmakers are working on another measure in HB 4041 that would allow for in-state betting on mobile devices. However, this measure remains in committee with no advancement.
Tennessee Sports Betting Tax Bill Signed Into Law
Gov. Bill Lee signed the controversial Tennessee sports betting tax bill into law. SB 475 will see sportsbooks now taxed on 1.85% of total gaming handle instead of the 20% on gross gaming revenue (GGR) from before.
Tennessee is the only market post-PASPA to ever tax sportsbooks on betting handle. The measure also removed the 10% hold mandate that was a part of the initial tax law. Sportsbooks received $25,000 fines for failing to maintain a 10% hold monthly. The new taxation kicks in for July 2023.
Time will tell how this tax rate affects the market. Taxing sports betting handle has been presented in other states such as Kentucky, Minnesota, and West Virginia but no such measure had advanced. If Tennessee sees success with this tax rate, the market could start a major shift.
