Sports Betting in the States

4/8/2021

Status of Sports Betting Legalization in the States

In just two and a half years following the Supreme Court’s decision to end the near-nationwide prohibition on sports betting, more than half of the country has taken action to legalize it. Sports betting is currently offered in 20 states and the District of Columbia. It is legal but not yet operational in another six of them. A handful of states, including North Carolina, New Mexico and Washington, do not have state-approved gambling but have worked with Native American governments to authorize it at tribal casinos.

Intrastate mobile sports betting has been implemented or authorized in 14 states, D.C. and Puerto Rico, so bettors can place bets from their phone or computer. (In Tennessee and Wyoming, sports betting is only available online.) Of the states that have not broadly legalized mobile betting, three states allow it very narrowly: Mississippi, Montana, and Washington only allow bets from a mobile phone to be placed while on casino premises.

Tax Rates, Licensing Fees, and Proceed Distribution

State Tax Rate Licensing Fees Proceeds Distribution Citation
Arkansas 13-20% No license fees. The majority of gaming tax revenue goes to the state’s general fund, with race purses, county and city governments the other beneficiaries AR Const. Amend. 100/ Proposed Rules
Colorado 10% The Master License Fee is $2,000 and a retail operator and mobile operator fee is $1,200 each. These are also the renewal fees every two years. Sports betting tax revenue goes towards funding the implementation of the state water plan and other public purposes HB 1327 (approved by voters in November 2019)
Delaware State receives 50% of total win No additional fee for sports wagering. General Fund No enacting legislation required due to PASPA grandfathering of Sports Lottery (See 29 Del.C. § 4825)
D.C. For retailers: 10%; For state lottery: revenue minus expenses  Up to $500,000 initial license fee.
$250,000 every five years renewal fee.
First $200,000 directed to the Department of Behavioral Health for gambling addiction and treatment programs. Of the remaining amount, half is used to fund the Birth-to-Three for All DC Amendment Act of 2018 and half is deposited in the Neighborhood Safety and Engagement Fund Sports Wagering Lottery Act
Illinois 15%

Land-based: $10 million initial license fee.
Online: $20 million initial license fee.

$1 million every four years renewal fee.

Capital Projects Fund (improvements to roads, bridges, mass transit, schools, universities) SB 690 (2019)
Indiana 9.5% $100,000 initial fee; $50,000 annual renewal. General Fund, cities and counties, gambling addition services HB 1015 (2019)
Iowa 6.75% $45,000 initial fee; $10,000 annual renewal. Deposited in Sports Wagering Receipts Fund to be used as directed by the General Assembly SF 617 (2019)
Louisiana Undetermined Undetermined Undetermined SB 130 (referred to and approved by voters in 52 of 64 state parishes in November 2020)
Maryland Undetermined Undetermined Undetermined SB 4 (referred to and approved by voters in November 2020)
Michigan

Commercial Retail/Tribal: 8.4%

Commercial Mobile: 9.65%

$150,000 licensing fee; $50,000 application fee; $50,000 yearly renewal fee.

30% of tax revenue goes to casino host cities for public safety and neighborhood development programs; 5% is dedicated to the Michigan agriculture equine industry development fund; and 65% goes to the Internet Sports Betting Fund. This fund is distributed in the following manner: $500,000 to the compulsive gaming prevention fund, the next $2 million to the first responder presumed coverage fund, and the remainder to the school aid fund.

H 4916 (2019)
Mississippi 12% (8% state/4% local) No additional fee for sports wagering.

Casino gaming tax revenue is allocated to the General Fund, with $3 million distributed to a separate state highway construction fund monthly

HB 967 (2017)
Montana State lottery collects revenue minus expenses $1,000 annual fee for platform operators; $100 fee per kiosk. First $12.4 million to the General Fund; excess directed to STEM scholarship fund HB 725 (2019)
New Hampshire

Mobile: 51% of gross gaming revenue

Retail: 50% of gross gaming revenue

None Education Trust Fund, Gambling Addiction Services HB 480 (2019)
New Jersey

Retail: 8.5%

Mobile: 14.25%

$100,000 annual fee.

Casino Revenue Fund (supports a variety of health and human services programs), General Fund, Atlantic City Marketing/Promotion, Local Economic Development.

NJ AB 4111 (2018)
New Mexico N/A (State receives revenue share from tribal governments.)     Tribes are offering sports betting in accordance with existing state/tribal compact
New York 10% No additional fee for sports wagering. Gaming tax revenue is allocated to statewide education programs, local municipal and county governments, and provides property tax relief to New York citizens. Sports Wagering Rules
Nevada 6.75% $500 initial license fee

Gaming revenue goes to gaming funds in state aid education, local government, the state General Fund, and problem gambling

Regulation 22
North Carolina N/A (State receives revenue share from tribal governments.)     SB 154 (2019)
Oregon State lottery collects revenue minus expenses. None Revenue from the Lottery’s sportsbook app is specifically dedicated to help pay down the state’s public pension liability. HB 2288 (2019)
Pennsylvania 34% state tax with a 2% local assessment. $10 million initial license fee. $250,000 renewal fee every five years. General Fund HB 271 (2017)
Rhode Island 51%  No additional fee for sports wagering. General Fund HB 8350 (2018)
South Dakota 9% Annual $2000 fee for sports wagering services providers As with other gaming tax revenue, 40% of proceeds are dedicated to the tourism promotion fund,10% is paid to Lawrence county. Of the remaining 50%, $100,000 is set aside for the historical preservation loan fund. The next 6.8 million is dedicated to the city of Deadwood. Of any remaining funds: 70% goes to the general fund and 30% goes to municipalities.  SJR 501 (referred to and approved by voters in November 2020); SB 44
Tennessee 20% $750,000 annual fee. 80% of revenue directed to the Lottery for Education account, 15% to General Fund, 5% to mental health and substance abuse services HB 1 (2019)
Virginia 15% $250,000 3 year license; $200,000 renewal; $50,000 application fee. 2.5% to problem gaming initiatives
97.5%to the state’s general fund
SB 384 (2020)
West Virginia 10% $100,000 fee; renewed every five years.

First $15 million to the Lottery Fund, additional revenue directed to the Public Employees Insurance Agency Financial Stability Fund

SB 415 (2018)
Washington N/A (State receives revenue share from tribal governments.)     H 2638 (2019)
Wyoming 10% $100,000 5-year initial sports wagering operator permit. $50,000 renewal fee. First $300,000 goes to county health programs to prevent and treat problem gambling behavior. The remainder is deposited in the general fund.  HB 133 (2021)

 

Jackson Brainerd is a Senior Policy Specialist with NCSL's Fiscal Affairs Program

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