North Carolina Leads the Way
North Carolina has taken a significant step by legalizing online sports betting on March 11, 2024. Licensed operators like FanDuel and DraftKings have already started accepting various types of sports wagers. The North Carolina State Lottery Commission issued rules for implementing HB 347, which became effective on January 8, 2024. This move impacts sports wagering operators and their service providers, setting a precedent for other states.
Georgia’s Legislative Push
Georgia is also making strides towards legalizing online sports betting. The state Senate passed a bill (SB 386) on February 1, 2024, to legalize online sports betting. This bill requires an amendment to the Georgia state constitution. The Senate also passed SR 579 to approve the required amendment, which is now pending House approval. If successful, the legislation will allow the Georgia Lottery Corporation to administer online betting platforms, with seven Type 1 licenses available through a competitive process.
Alabama’s Legislative Hurdles
Alabama is currently without legal sports betting, but legislators are pushing for change. The Alabama House passed two bills on February 15, 2024: HB 152, which would legalize in-person and online sports gambling, and create the Alabama Gaming Commission, authorize up to seven casinos, and permit a state lottery. However, the Senate made major changes by removing the legalization of sports betting and casinos from the bills on March 5. Both bills require a constitutional amendment, and voters will need to vote on this in November 2024.
Mississippi’s Online Betting Prospects
Mississippi currently allows retail sports betting at specific physical locations, but online sports betting remains prohibited. The Mississippi House passed HB 774 on February 1, which would legalize online gambling if it becomes law. Online platforms must partner with a casino to offer online sports gambling. The bill is now with the state Senate, which has until April 2, 2024, to vote. The potential tax revenue from legalized mobile sports betting is estimated at over $25 million annually.
Texas Faces Challenges
Texas has seen significant discussion around the legalization of sports betting, but progress has been slow. The Texas Legislature meets every other year, and the next session is in an off-year. Previous legislative efforts have failed, and the next opportunity for legalization will be when the Legislature reconvenes in 2025. Despite setbacks, the Texas Sports Betting Alliance continues its efforts, with support from professional sports owners like Mark Cuban.
Missouri’s Ballot Initiative
Missouri is another state to watch, with a ballot initiative to legalize sports betting set for November. This initiative has significant support from professional teams and financial backing from FanDuel and DraftKings. Two separate bills filed in the state Senate propose online and retail sports betting at riverboat casinos, with differences mainly in taxation rates. Hypothetical odds suggest Missouri has a good chance of legalizing online sports betting next year.
Other States in the Mix
Several other states are also pursuing sports betting legalization. Oklahoma saw Governor Kevin Stitt‘s plan to legalize sports betting excluding tribes fail to materialize. In South Carolina, a bill (HB 3749) to legalize sports betting fizzled out, with future efforts likely dependent on North Carolina’s success. Minnesota saw efforts fall short for the second consecutive year due to multiple stakeholders’ interests, with another push expected in 2025.
General Trends and Future Prospects
The online sports betting industry is rapidly growing, with over $8 billion in revenue in 2023 and expected to become a $14 billion industry by 2027. The spike in legal sports betting is attributed to a 2018 Supreme Court decision that struck down a 1992 law, allowing states to legalize it. Currently, sports betting is legal in 38 states, Washington D.C., and Puerto Rico. The momentum continues as additional states draft new bills or update existing regulations.
Conclusion
The landscape of online sports betting in the USA is evolving rapidly. States like North Carolina and Georgia are leading the way with recent legislative successes, while others like Texas and Alabama face more significant challenges. As more states consider legalization, the industry is poised for continued growth, offering new opportunities for operators and bettors alike. Keep an eye on states like Missouri and Mississippi, which are on the cusp of significant changes in their sports betting laws.
