sports betting overview - naleo educational fund · 2019-11-07 · sports pools; no house-banked...

Sports Betting OverviewNALEO Legislative SummitSession II - Pros and Cons: Legalized Sports Betting and State RegulationOctober 25, 2019

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AMERICAN GAMING ASSOCIATION

Timeline of Federal Activity on Sports Betting

May 2018 Aug. 2018 Sept. 2018 Dec. 2018 Aug. 2019 Sept. 2019

SCOTUS

strikes down

PASPA

Senator Hatch (R-

UT) announces

intent to pursue

federal legislation

Senator Schumer

(D-NY) engages

AGA sends letter

to Schumer

AGA testifies at

House Judiciary

Committee Post-

PASPA Hearing

Sports Wagering

Market Integrity

Act introduced

Congress

adjourns

Senator

Hatch retires

NCAA entities

vocalize support

for federal

legislation

Senator Romney

(R-UT) confirms

interest in

legislation

Updated As of 9/30/19

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Nevada

• Only state that permitted single-game wagering.

• Licensed sportsbooks throughout the state conducted activity.

Delaware

• Lottery offered parlay cards on NFL games in 1976.

• The scheme was subsequently discontinued as it was unsuccessful, but the law permitting activity remained on the books.

Montana

• Only wagering scheme permitted was sports pools; no house-banked activity.

• Betting square contests were permitted by licensed alcohol beverage establishments.

Oregon

• Lottery conducted a parlay card system called Sports Action that commenced in 1989.

• Sports Action ceased in 2007 in an effort to attract collegiate basketball tournaments in the state.

Pre-PASPA Landscape

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1.

2.

3.

4.

124 Bills Filed in 32 States

12 Bills Signed or Sent to Governor; 11 Bills Have Become Law

• Enacted: CO, DC, IL, IN, IA, MT, NH, NC, RI, TN, VA

• Pending: ME

5 States Continue to Have Active Sports Betting Legislation/Ballot Measure

• CO, ME, MA, MI, OH,

Post-PASPA Landscape2019 State Legislative Action

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New Jersey

• Three skins per casino licensee

• Fully mobile registration

• All payment methods accepted

• Wagering on collegiate events permitted

• No data mandate or league fees

• Tax rate is 9.75% for retail and 14.25% for online

Pennsylvania

• One skin per casino licensee

• Fully mobile registration

• All forms of payment, except credit



• Tax rate is 36%

Nevada

• License given to operator

• In-person registration




• Tax rate is 6.75%

Mature Markets

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Tennessee

• First and only exclusively mobile state; unlimited licenses available

• Mobile registration

• Debit or electronic transfer payment

• In-play wagering on collegiate events prohibited

• Official data required for in-play wagering

• Tax rate is 20%

Iowa

• Two skins per casino licensee

• In-person registration required until Jan. 1, 2021


• Wagering on collegiate events permitted, but in-play wagers involving Iowa teams prohibited



Indiana

• Three skins per casino licensee

• Mobile registration

• All forms of payment accepted


• Possible official data feed requirement for in-play wagers


New Markets

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New York

• State is debating possible need for a constitutional amendment

• Sports betting launched at 4 retail and 2 tribal casinos

• Various draft bills for mobile wagering have included league fees

• Tax rate is 10%

Mississippi

• 23 properties offer sports betting

• State has fallen 50% short of projected revenue from sports betting

• No plans to amend law to include mobile

• Tax rate is 11%-12%

Arkansas

• Launched July 1, 2019

• Licensed through state racetracks and casinos

• Tax rate is 13% for revenue up to $150M and 20% for revenue exceeding $150M

Retail-Only Markets

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Sportsbook Economics, Simplified

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Sportsbook Economics, Simplified

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Best Practices for State Regulation

• Charge a reasonable tax rate, preferably 6.75%, or tribal revenue share on gross gaming revenue, and charge no “league fees” or handle tax.

• Allow betting on collegiate, minor league, and in-state events, without league veto power.

• Allow operators to offer intrastate betting on a mobile device or website.

• Create a national repository that gaming companies can contribute anonymized sports betting data to.

• Require communication regarding legal betting age, offer limit-setting, and call for responsible advertising.

PA

GE

Securityand Ease of PlacingBetsare top priorities for future

participation.

82%

73%

67%

63%

62%

51%

Secure betting

Ease of placing bet

Great odds

Ease of getting started

Types of bets available

Bonuses / welcome offers

Importance of Sports

Betting Features

% Essential/Very Important



Thank You!

sports betting overview - naleo educational fund · 2019-11-07 · sports pools; no house-banked...

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