The sports gambling industry in the USA is constantly moving, specifically on the legislative front. With each state responsible for regulating its industry, it's hard to keep up with all the breaking news, so as we head into the Easter break, here's a round-up of a busy week in the legislative world of sports gambling.
Florida
In the Sunshine State, bill HB1467 got a favorable report out of committee. Florida's House Industries and Professional Activities Subcommittee suggested that illegal gambling should see tougher punishments. Bill HB1467 looks to increase such crimes from simple misdemeanors to a third-degree felony.
Regulators are looking to clamp down on what they believe are more than 1,000 illegal slot machine "arcades" across the state that can pocket up to $60,000 per month, easily enough to cover any fines the state can levy against them.
Hawaii
In Hawaii, legislators have been taking bigger steps towards legalizing sports gambling. The Senate recently approved HB1308 with a few amendments, namely adding a 10% tax rate and a $250,000 licensing fee. Both items were previously in HB1308 but were removed by the House, which wanted to negotiate these rates with operators.
Now that the bill is back in the House with the previously removed amendments present, representatives have rejected the bill, pushing it to a Conference Committee. The committee will decide whether the bill will by April 24, 2025.
Should the bill , Hawaii would be the first state to legalize sports gambling in 2025 and the 40th state since PASPA was repealed in 2018.
This bill would become the Aloha States' first step into gambling, as it has no casinos or state lottery. Naturally, there is pushback from lawmakers with specific concerns about problem gambling and addiction. Bill 1308 addresses this by dedicating seven percent of taxes collected through sports gambling to problem gambling prevention.
Kansas
Chaos is happening in Kansas. All six of the state's sportsbooks - FanDuel, DraftKings, BetMGM, Caesars Sportsbook, ESPN Bet, and Fanatic - risk seeing their license expire by August 31, 2027.
Why would Kansas lawmakers do this when the state pulled $12.7 million in tax revenues from these operators in 2024?
This could be steering towards a single-source model, making Kansas the largest single-sourced market in the US. New Hampshire, Rhode Island, Delaware, and Washington, DC have single-source sports gambling markets. DC provides a cautionary tale due to the number of issues from its single provider, GamBetDC, including terrible odds, allegations of fraud, and technical issues.
Some also believe that having a single-source operator would allow the Sunflower State to increase the tax rate on books. Kansas's 10% tax rate is already one of the lowest in the state, and the $12.7 million in taxes collected for 2021 is one of the worst return rates in the US. Though, as other states such as Illinois have demonstrated by moving the tax rate from 15% to 40% through a new budget, you don't need to end licenses to increase the tax rate.
Michigan
Prediction markets, Kalshi and Robinhood, have come under fire across the US as they step into the sports gambling world. Michigan was the latest state to contest the two platforms for "bying Michigan's [sports gambling] regulatory framework".
Instead of sending both companies a cease-and-desist letter as Nevada and New Jersey did, the Wolverine State has decided to investigate the matter before deciding how to proceed.
Kalshi has argued that it is a federally regulated exchange platform, and only the CFTC can tell them to stop. A Nevada District Court backed up this claim, stating that "state law does not apply to Kalshi".
The CFTC is currently without a permanent chair, though former Kalshi board member Brian Quintenz has been named for the position by Donald Trump. Quintenz's confirmation could take months, leaving a verdict on Kalshi up in the air.
Nebraska
Nebraska has moved closer to a constitutional amendment that would legalize sports gambling with Senator Eliot Bostar's LR20CA. The amendment, introduced in mid-January, has been weaving its way through Nebraska's legal system and advanced to Enrollement and Review by a 27-16 vote this week.
Much is left to be done before this issue can be put on a ballot for Nebraskans to vote on, needing two more readings, one more debate, and the approval of Governor Jim Pillen. But last weeks positive vote is a step forward none-the-less.
Legalization efforts are popular in the state, with nearly 60% of voters in Nebraska ing legalized mobile sports gambling, per Bostar. A claim partially backed up by geolocation specialists, GeoComply, which has tracked thousands of Nebraskans driving out of Omaha into Iowa to place a bet before returning home to Nebraska.
New York
Big changes could be coming to the sports gambling industry in the Empire State. New York Assemblymember Robert Carrol introduced A7962, which would place daily betting limits, deposit limits, and bans on certain gambling ads. Here's exactly what the bill is proposing:
- Wagers can't exceed $5,000 in 24 hours
- Ban on ads featuring odds boosts, "bonus," or "no sweat" bets
- Limit deposits to five per 24-hour period
- Ban on ads between 8 AM and 10 PM, as well as during live sporting events
ing this bill and combining it with the state's 51% tax on sportsbooks would easily make New York the most restrictive state for sports gambling and drastically alter the industry.
New York routinely tops US handle charts. In January 2025, NY books had $2.48 billion in handle, a 26% year-over-year increase, which dwarfed any other state. That $2.48 billion generated $248 million in revenues and $149 million in taxes for the state. Numbers that would significantly decrease should this bill .
The bill is currently with the Assembly Racing and Wagering Committee.
North Carolina
Senate Republicans in North Carolina want to double the tax rate on sports gambling operators from 18% to 36%. Unveiled in a new proposed budget, the tax increase would make North Carolina one of the highest taxed states after Ohio (40%), Delaware (50%), and New York (51%).
The budget would also along some of that tax revenue to NC State and UNC, both of which have been barred from the state's $120 million sports gambling tax revenues since March 2024. Under this new budget, both schools could receive $11.5 million.
Overall Trends
What we're seeing across state lines is the maturation of the industry and state legislatures trying to adapt to the situation at hand. From cracking down on those trying to skirt regulations in Florida, or getting in the game instead of seeing citizens spend their money elsewhere in Arkansas.
