Sports Betting Overview - NALEO Educational Fund · 2019-11-07 · sports pools; no house-banked...
Transcript of Sports Betting Overview - NALEO Educational Fund · 2019-11-07 · sports pools; no house-banked...
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Sports Betting OverviewNALEO Legislative SummitSession II - Pros and Cons: Legalized Sports Betting and State RegulationOctober 25, 2019
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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
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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
• Wagering on collegiate events permitted
• No data mandate or league fees
• Tax rate is 36%
Nevada
• License given to operator
• In-person registration
• All forms of payment, except credit
• Wagering on collegiate events permitted
• No data mandate or league fees
• 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
• All forms of payment, except credit
• Wagering on collegiate events permitted, but in-play wagers involving Iowa teams prohibited
• No data mandate or league fees
• Tax rate is 6.75%
Indiana
• Three skins per casino licensee
• Mobile registration
• All forms of payment accepted
• Wagering on collegiate events permitted
• Possible official data feed requirement for in-play wagers
• Tax rate is 9.5%
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.
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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
AMERICAN GAMING ASSOCIATION
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AMERICAN GAMING ASSOCIATION
Thank You!