Bill Proposed for Online Casino Gaming in Indiana and Wyoming
There has been a renewed outpouring of gambling bills for a number of states, and the latest states to join the bandwagon are Indiana and Wyoming. Additionally, Maryland is asking for a tax increase for gambling, and New Jersey has proposed a legalization of sweepstakes gaming - all within the week.
This week marked the unveiling of several key gambling-related legislative initiatives across the United States as states seek to regulate and expand their gaming sectors. Indiana and Wyoming introduced bills to legalize online casino gaming, while Maryland proposed a significant tax hike on gambling revenue. Meanwhile, New Jersey rolled out a bill to regulate sweepstakes gaming.
Wyoming's iGaming push
Wyoming took a significant step toward becoming the first state west of the Mississippi to legalize full-scale online casino gaming. A bill introduced on Tuesday proposes licensing fees of $100,000 for the beginning five years, with a stated preference for operators already active in at least three of the seven states with legalized online casinos.
According to a recent Spectrum Gaming Group report commissioned by the Wyoming Gaming Commission, legalizing iGaming in Wyoming could generate gross revenues between $96 million and $142 million by 2025, provided the bill is swiftly enacted.
Unlike other states, Wyoming's lack of commercial casinos eliminates concerns about online gaming cannibalizing brick-and-mortar revenue. However, the state's cautious history with gaming expansion suggests a potentially slow legislative process. If approved, Wyoming would make history as the first western state to embrace full-scale iGaming, apart from Nevada's limited online poker offering.
Indiana renews efforts for iGaming
In Indiana, Representative Ethan Manning revived efforts to legalize and regulate online casino gaming and online lottery systems. The proposed bill would allow each casino as well as racetrack in the state to partner with a maximum of three iGaming operators. Licenses would cost $500,000, and a tiered tax structure ranging from 22% to 30% would apply based on annual gross revenue. The bill also includes provisions for a 'responsible gaming and problem gambling services program,' which could win over lawmakers concerned about gambling addiction.
Indiana has been proactive in pursuing gambling initiatives, but past scandals may complicate this latest push. In 2023, former state legislator Sean Eberhart was sentenced to a year in federal prison for accepting a job in exchange for supporting new gaming options. The scandal may make some lawmakers hesitant about further gaming expansions.
Maryland eyes gambling tax hikes
In Maryland, Governor Wes Moore's proposed budget includes a sharp increase in gambling tax rates. Under the proposal, taxes on sports betting revenue would rise from 15% to 30%, while table game taxes would increase from 20% to 25%.
The move follows trends in other states such as Illinois and Ohio, which raised sports betting taxes last year. New York's staggering $1 billion tax revenue from its 51% sports betting tax rate has undoubtedly influenced Maryland's ambitions. However, while Maryland's proposed 30% rate exceeds the national average, it falls short of New York's benchmark. Maryland is also expected to reintroduce legislation to legalize iGaming, signaling its intent to further expand the state's gambling industry.
New Jersey takes aim at sweepstakes gaming
New Jersey, a trailblazer in the US gambling sector, introduced a bill to regulate sweepstakes gaming. Assemblyman Clinton Calabrese proposed legislation that would classify sweepstakes casinos under the state's internet gaming framework, requiring licensure, oversight, and taxation.
Sweepstakes gaming has faced legal challenges in several states due to its exemption from gambling taxes and lack of oversight. The potential undercutting of online casino tax revenue could pose challenges to its regulation in a state like New Jersey, where iGaming is a significant source of income. The Social and Promotional Games Association, representing sweepstakes and social operators, welcomed the legislation. "The SPGA and its members are advocates for clear regulations that enable transparent, innovative, and responsible social and promotional gaming experiences," said spokesperson Randi Brown.
As the four-month legislative season ramps up across the US, the push to expand and regulate gambling reflects a growing appetite for gaming revenue. From Wyoming's iGaming aspirations to Maryland's proposed tax hikes and New Jersey's focus on sweepstakes gaming, states are exploring diverse paths to capitalize on the growing gambling industry.
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