North Dakota and Kentucky Push For Sports Betting Regulation

Almost simultaneously, lawmakers of Kentucky and North Dakota found their efforts paid off and rewarded with advancements of their respective sports wagering bills!

Both Kentucky’s House Bill 175 and North Dakota’s House Bill 1254 have been ed by corresponding authorities: The Kentucky House Licensing, Occupations and istrative Regulations Committee in the former and House of Representatives in the case of a latter.

The proposed pieces of legislations differ in that Kentucky’s enables in-person sports wagering in sports and racetrack venues, as well as online and mobile betting…

…whereas North Dakota’s bill permits in-person sports wagering only.

Different Routes for the Same Goal

The states’ House Bills also differ in a way they reached the next stage – and Kentucky’s road seems way smoother than that of North Dakota.

Kentucky’s Committee has ed House Bill 175 almost unanimously – there was only one abstention, and not a single vote against!

Beside online, mobile and in-person sports wagering, this particular bill takes fantasy sports and online poker into consideration and wishes to make them legal, too. Operators wishing to obtain a sports betting license would have to cash out $1 million, while annual renewal would cost $50,000.

Fantasy sports licenses would come at a much cheaper price of $5,000.

As for taxes – which would be paid monthly – they would be set according to channels and sources of income…

…meaning, in-person betting would come with the lowest tax rate on gross revenue of 10.25%. Mobile and online would be taxed at a higher rate of 14.25%. Fantasy sports taxes are not yet determined.

Online poker licenses are also mentioned in this bill – they would cost operators $250,000 while yearly renewal comes at a $10,000 price. Taxes’ rate would be 6.75% of net revenue.

Before heading to the state Senate for reviewing, House Bill 175 needs to the vote in House of Representatives – and it can only if at least 60 out of total 100 Reps. vote “pro” on the matter.

North Dakota’s Lucky Break

It was a case of near failure in North Dakota, where House Bill 1254 was initially rejected by the state House…

…it got the majority of 46 votes “in favor” to 44 “against,” but that was not the constitutional majority needed for ing of bills. Luckily for lawmakers who proposed it, the bill was subject for reconsideration and during a new vote, it got the necessary majority: 52 voted in favor with 38 against.

This bill only authorizes in-person betting in certified venues – and it also classifies sports betting as a “game of chance.”

Under this law, one or two operators at most can hold a sports betting license. And since there are no commercial casinos in this state yet…

…these would be made available to gambling properties owned by Native American tribes and charity type of organizations whose sole service would being raising funds.

Tax rates will be based on gross wagering revenue – operators with this vertical’s income under $1.5 million per quarter would be paying 1% in taxes, while those who make over $1.5 million will be paying 2.5%.

House Bill 1254 will be a subject of North Dakota Senate debate on February 27th.

Source:

“Kentucky and North Dakota sports betting bills advance”, igamingbusiness.com, February 22, 2019.