As 2024 draws to a close, the landscape of gambling legislation in the United States is marked by expired bills in Michigan and Ohio, while South Carolina and Texas make moves toward potentially transformative changes in their respective laws for 2025. These legislative developments underline the dynamic and often unpredictable nature of gambling reform across the nation.
Michigan and Ohio Bills Fail to Progress
In Michigan, state senators Sam Singh and Jeremy Moss introduced two bills aimed at increasing gambling tax revenues. Senate Bill 1193 proposed a modest 1% hike in the tax rate on wagering operators’ adjusted gross receipts (AGR), moving from 8.4% to 8.5%. Senate Bill 1194 sought a similar 1% increase for iGaming taxes across all existing tiers. These bills were geared toward channeling more funds into local city budgets, with a target of raising their share of tax revenue from 30% to 31%. However, neither piece of legislation will carry over into 2025, leaving their future uncertain.
Ohio faced its own legislative hurdles with Senate Bill 312, which aimed to legalize online gambling. The bill, authored by term-limited Senator Niraj Antani, would have allowed the state’s 11 casinos to operate one digital platform each. Antani also proposed a separate measure to reduce the sports betting tax from 20% back to its original 10%, undoing an increase spearheaded by Governor Mike DeWine. Despite being referred to the Senate Finance Committee, both bills failed to gain traction and are set to expire at the end of the year.
South Carolina and Texas Look Ahead
While legislative efforts stalled in Michigan and Ohio, South Carolina and Texas are gearing up for renewed debates on gambling reform in 2025.
South Carolina has introduced two key proposals. HJR 3353 seeks a constitutional amendment that would ultimately leave decisions about legalizing in-person betting, pari-mutuel wagering, and casino games to the voters. Meanwhile, HB 3625 focuses solely on legalizing digital sports betting, capping the number of platforms at eight and imposing a 12.5% tax on gross gaming revenue. The bill also includes significant licensing fees and requires applicants to be operational in at least five other states, potentially excluding smaller operators like Betr and Underdog.
In Texas, a more ambitious proposal has been filed. SJR 16, authored by Democratic Senator Carol Alvarado, calls for a constitutional amendment to establish seven destination-resort casinos, legalize sports betting, and create a state gaming commission. While the bill outlines a 15% tax rate on casino gross gaming revenue, it lacks specifics on sports betting taxes and whether online platforms would be included. Despite heavy lobbying efforts, including a $13 million campaign led by Miriam Adelson, the proposal faces significant political challenges, particularly from Senate Republicans.
A Mixed Outlook for US Gambling Reforms
The close of 2024 marks a year of setbacks for gambling reform in states like Michigan and Ohio, while South Carolina and Texas prepare to debate new opportunities in 2025. These legislative efforts reflect broader trends in the evolving gambling landscape, balancing economic aspirations with regulatory challenges. As discussions continue, the fate of these proposals will shape the future of legal gambling across the United States.
Source:
Three US gambling bills will die by end of year but three wagering bills pre-filed for 2025, igamingbusiness.com, December 23, 2024.
