As 2024 comes to a close, the landscape of gambling legislation in the United States is marked by expiring measures in Michigan and Ohio, while South Carolina and Texas prepare to make potentially transformational changes to their respective laws in 2025.
These legislative events highlight the fluid and frequently surprising character of gaming reform across the country.
Michigan and Ohio bills fail to progress
In Michigan, state senators Sam Singh and Jeremy Moss submitted two legislation to increase gambling tax income. Senate Bill 1193 suggested a small 1% increase in the tax rate on wagering operators’ adjusted gross receipts (AGR), from 8.4% to 8.5%.
Senate Bill 1194 proposed a comparable 1% rise in iGaming taxes across all existing levels. These bills were designed to channel more monies into local municipal budgets, with the goal of increasing their share of tax revenue from 30% to 31%.
However, neither piece of legislation will be carried over into 2025, making their future questionable.
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Ohio saw its own legislative challenges with Senate Bill 312, which sought to allow online gambling. The bill, written by term-limited Senator Niraj Antani, would have allowed each of the state’s 11 casinos to operate its own digital platform.
Antani also introduced a separate legislation to cut the sports betting tax from 20% to 10%, erasing a hike backed by Governor Mike DeWine. Despite being referred to the Senate Finance Committee, both legislation failed to gather traction and will expire at the end of the year.
South Carolina and Texas Look Ahead
While legislative initiatives in Michigan and Ohio have stalled, South Carolina and Texas are preparing to resume deliberations on gambling reform in 2025.
South Carolina has offered two major initiatives. HJR 3353 proposes a constitutional amendment that would ultimately leave the decision to legalize in-person betting, pari-mutuel wagering, and casino games to voters.
Meanwhile, HB 3625 focuses entirely on legalizing digital sports betting, limiting the number of platforms to eight and imposing a 12.5% tax on gross gaming revenues.
The bill also imposes large license fees and requires applicants to operate in at least five other states, potentially barring smaller companies such as Betr and Underdog.
In Texas, a more ambitious proposal has been submitted. SJR 16, introduced by Democratic Senator Carol Alvarado, proposes a constitutional amendment to develop seven destination resort casinos, legalize sports betting, and establish a state gaming commission.
While the measure proposes a 15% tax on casino gross gaming revenue, it does not specify sports betting taxes or whether internet platforms will be included. Despite extensive lobbying efforts, including a $13 million campaign spearheaded by Miriam Adelson, the initiative faces strong political opposition, particularly from Senate Republicans.
A mixed outlook for US gambling reforms
The end of 2024 marks a year of defeats for gambling reform in states such as Michigan and Ohio, while South Carolina and Texas plan to discuss new opportunities in 2025.
These legislative measures reflect broader trends in the changing gambling scene, balancing economic goals with regulatory requirements.
As debates continue, the outcome of these measures will determine the future of legal gambling in the United States.
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