Latest Gambling News: Ohio Lawmaker Aims To Restore 10 Percent Sports-Betting Tax, and more

Catch up on six of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

Ohio Lawmaker Aims To Restore 10 Percent Sports-Betting Tax

Republican state Senator Niraj Antani believes doubling the state’s tax rate on sports betting last year put Ohio at a significant disadvantage to low tax states and makes it difficult for operators to be financially viable.

In its 2023 budget law, Ohio doubled its tax rate on sports betting from 10 percent to 20 percent of gross revenue. Republican Governor Mike DeWine first proposed the increase barely two months after the launch of wagering on January 1, 2023.

Antani, who authored the bill that legalized sports betting in Ohio, introduced Senate Bill 190 that proposes to reduce the tax rate back to its original 10 percent.

Antani submitted written testimony to the Senate Finance Committee arguing that Ohio made a mistake when it increased the sports-betting tax rate. The committee did not hear testimony on the bill during its hearing on Tuesday (November 12).

“The 20 percent rate makes us the sixth highest out of the 38 states with sports betting,” Antani wrote. “The lowest in the country are Iowa and Nevada, three time lower than our rate.”

“Our border states, Kentucky, Michigan, Indiana and West Virginia, now all have significantly lower tax rates. This puts us at a significant regional and national disadvantage.”

Antani said he believes 10 percent was a reasonable tax rate that put Ohio in the middle of the pack.

“While I’d love for us to be at the 6.75 percent rate … the lowest in the country, going back to 10 percent is reasonable,” Antani wrote.

Tilman Fertitta Reports 9.9 Percent Stake In Wynn Resorts

Tilman Fertitta, owner of Fertitta Entertainment, has disclosed a 9.9 percent passive investment in Wynn Resorts, sending shares up $7.42m or 8.65 percent, to $93.22 on Thursday (November 14).

Fertitta, CEO and sole owner of Fertitta Entertainment, now holds approximately 10.9m shares of Wynn, according to a regulatory filing with the U.S. Securities and Exchange Commission.

The filing did not indicate how much Fertitta paid to increase his ownership stake in Wynn. In October 2022, an SEC filing revealed that Fertitta acquired 6.91m shares, or a 6.1 percent stake in the Las Vegas-based company.

Should Fertitta up his beneficial ownership in Wynn to more than 10 percent, Nevada Regulation NRS.463.643 requires that he “apply to the [Nevada Gaming] Commission for a finding of suitability within 30 days after the chair of the [Nevada Gaming Control Board] mails the written notice.

At more than 5 percent, Fertitta was required to notify the commission through a letter stating the intention of the stock purchase, along with including any SEC filings.

Fertitta’s latest stock acquisition was announced in a 13G filing, which indicates a passive investment in Wynn as opposed to a 13D filing, which would indicate an activist investment.

New Jersey Bill Baning College Prop Bets Advances

A bill that would ban prop bets on college athletes in New Jersey was approved by an Assembly committee on Thursday (November 14) but still needs to be approved by the House and Senate and then signed into law by Governor Phil Murphy, a Democrat.

A 4905, and its companion legislation in the Senate S 3080, would ban sportsbooks from offering or accepting wagers on player-specific proposition bets on any collegiate sport or athletic event.

The Assembly Tourism, Gaming and the Arts Committee voted 5-0, with Republican Assemblyman Antwan McClellan not voting on the bill.

“Even as a staunch supporter of the sports betting industry, I believe it is incumbent upon us to recognize the incredible pressures that college athletes face between their academic and athletic responsibilities,” Democratic Assemblyman Sterley Stanley, who sponsored A 4905, said in a statement following Tuesday’s committee vote.

“My legislation ensures that they do not have those pressures compounded by problem gamblers that have come to harass our college athletes when gamblers lose money on college player proposition bets,” Stanley said.

Currently, New Jersey sports-betting regulations prohibit wagering on in-state college teams, but they do allow betting on college player props.

Currently, 13 states ban college prop bets. They are West Virginia, Virginia, New York, Ohio, Pennsylvania, Colorado, Massachusetts, Oregon, Tennessee, Arizona, Louisiana, Vermont, and Maryland.

Federal Judge Does Not Delay Arkansas Anti-Casino Amendment

A federal judge has denied a temporary injunction blocking the implementation of an anti-casino constitutional amendment that voters in Arkansas approved last week.

Known as Issue 2, the constitutional amendment repealed a Pope County casino license granted to Cherokee Nation Entertainment (CNE) and requires county-wide election for future casinos in the state. Arkansas voters passed a casino amendment in 2018 that allow four casinos in the state, including in Pope County.

Judge D.P. Marshall Jr., with the Eastern District of Arkansas in Little Rock, denied CNE’s request for a temporary restraining order and dismissed the state and Arkansas Racing Commission as defendants in the case.

Despite Marshall’s denial the case will continue as he has called for briefs through November. In his two-page order, Marshall required CNE to filed a proposed schedule for expedited discovery and a trial by Friday (November 15).

The amendment took effect on Wednesday (November 13). CNE sued the state of Arkansas last week after voters approved Issue 2, arguing the amendment is a violation of the Takings Clause of the U.S. Constitution and the company's “substantive due process rights.”

LiveScore Latest To Abandon Dutch Market

LiveScore is to exit the Dutch market, citing an impending tax hike.

The Malta-based company announced that its LiveScore Bet product would cease operations on November 29.

In a statement, the company directly cited a planned tax increase to 37.8 percent of gross gambling revenue.

“Unfortunately, the planned tax increase means that this market is no longer viable commercially,” said LiveScore Group CEO Sam Sadi.

Other Dutch exits in recent weeks include Flutter-owned Tombola and Netherlands-based lottery operator Novomedia, which shut down its live casino games.

Massachusetts Release Sports-Betting Seal Of Approval

The Massachusetts Gaming Commission (MGC) announced Wednesday (November 13) an official seal of approval for online sports-betting operators, designed to allow consumers to distinguish between licensed and regulated operators and illegal, offshore sites.

The MGC developed and adopted the official seal, which each licensed operator is required to include on their digital platforms beginning this month. Massachusetts currently licenses seven online platforms.

The deal will indicate to consumers that the platform is licensed and regulated by the commission.

“The MGC has spent considerable efforts ensuring that the operators licensed in the Commonwealth share our values and are committed to consumer protections and responsible gaming,” said commissioner Eileen O’Brien.

“Massachusetts residents who choose to gamble on sports deserve to know their data, personal and financial information are protected, and only the legal marketplace offers those protections,” O’Brien said in a statement. “By locating this seal, users will be able to easily identify a legal sportsbook from an illegal operator.”

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