Indiana Gov. Eric Holcomb has signed a bill that "legalizes mobile sports wagering" in the state, according to a front-page piece by Kaitlin Lange of the INDIANAPOLIS STAR. The bill is "unprecedented and represents one of the largest changes to the state's gaming industry in decades," as "never before has mobile gambling been allowed in Indiana." People aged 21 and older will now be able to bet on pro sports "in casinos and on mobile devices, once the law takes effect in July." Holcomb waited until the final day of the legislative session "to act on the bill, which would still have gone into law without his signature" (INDIANAPOLIS STAR, 5/9). The AP's Tom Davies notes the law "will allow wagering on collegiate sports, but not on high school or youth sporting events." Indiana joins Montana and Tennessee as states so far this year "to legalize sports wagering after six other states moved quickly following a U.S. Supreme Court decision allowing it nationwide last year." A bill in Iowa is "awaiting a decision by that state’s governor and several other states are considering legalization measures" (AP, 5/9). In Indianapolis, Lindsey Erdody noted the new law "implements a 9.5% tax rate" on wagers. This tax rate is "higher than some states, such as Nevada and New Jersey, where the rates are 6.75% and 8.5%, respectively" (IBJ.com, 5/8).
MOBILIZING EFFORTS: The WALL STREET JOURNAL's Jimmy Vielkind reports two New York state lawmakers "renewed their push to legalize online sports betting" in the state, but they "still face questions about whether such efforts are prohibited by the state's constitution." The state constitution "includes a blanket prohibition against gambling." State Sen. Joe Addabbo and Assembly member Gary Pretlow indicated that they had "narrowed a bill to allow online and mobile-device sports betting, potentially by the state's four commercial casinos and three Indian tribes that operate upstate casinos." An earlier version of the bill "would have allowed betting at designated affiliates of the casinos, including horse-racing tracks or stadiums." Addabbo said that if computer servers processing online wagers are "located at the casinos, they could be allowed by a legislative change." Financial analysts said that mobile betting companies "could make up to" $1B a year as the market matures, which could mean around $100M in revenue for the state (WALL STREET JOURNAL, 5/9). In Buffalo, Tom Precious in a front-page piece notes through over four hours of testimony yesterday during a legislative hearing on sports betting, "stakeholders -- from the NFL to upstate casinos to NHL players -- all had their own ideas." Pro sports leagues want "only their data to be used when guiding how betting outcomes are determined," and they want to "collect royalty payments." However, sports betting companies "pitched a more relaxed model." All parties could "agree on one thing: If sports betting does come to New York gamblers should be able to wager via their smartphones, laptops and other electronic devices" (BUFFALO NEWS, 5/9).
TEMPERING EXPECTATIONS: The AP's Jennifer McDermott noted sports betting is now "expected to bring in" about $15M in Rhode Island in the next FY, just "half of what state officials had hoped for." Most of the states that "moved quickly to legalize sports betting after the Supreme Court cleared the way are still waiting for the expected payoff." Tax revenue has "fallen far short of projections in four of the six states where gambling on sporting events started last year." Rhode Island Gov. Gina Raimondo's proposed '20 budget "counted on an estimate" of $30M from sports betting next year. However, consulting firm Christiansen Capital Advisors projects that the state "won't make that much off sports betting annually" until '24. The firm estimated sports betting could bring in $2.65M this FY (AP, 5/7).
