2019 is a year to watch out for, in terms of sports betting in the US. Since the PASPA repeal in 2018, there have been a handful of states that have legalized sports betting in their respective states. Some happened swiftly, while some are carefully considering their options. PricePerPlayer.com, has been keeping track and reporting these developments since the beginning.
There are a lot of considerations when legalizing sports betting, since one must consider regulating the market, assigning an agency to monitor the industry, and determine the licensing issues and fees. From the point of view of the government, the industry can be risky, despite the potential for profit. Licensing fees can fund state programs, and taxes collected from the handle will be a great source of funds for the government as well. Some states are considering using the money to fund programs to help people with gambling problems. Some will use the taxes to fund social programs and facilities, while some will be used for pensions of people who work in the public sector.
Because of this, state legislators are learning more about the gambling industry and figuring out the best way to benefit from it.
Indiana and Sports Betting
In the case of Indiana, their lawmakers, through Representative Alan Morrison, are filing House Bill 1363. This bill serves as the legislation to legalize sports betting in the state, and will call for a 6.25% tax on the gross gaming revenue of bets placed in person. According to the bill, those who will get licenses will start operating on the 1st of January in 2020. The license fee will be $75,000 per facility. There will be an annual fee of $10,000 in the years after their initial year of operation.
The Indiana Gaming Commission will oversee this, and will determine which sports can be wagered on. For instance, amateur sports events as well as high school sports are off-limits.
Alan Morrison estimates that this can generate between $2.2 million to $13.3 million per year in the next few years. As to where the revenue will go, $100,000 of it will go to mental health, as well as addiction programs to help those with gambling issues. This bill has passed first reading, and is now with the committee on public policy.