Sports wagering regulations are advancing in Kentucky and North Dakota. Legislators in these states have approved measures that will authorize diverse types of sports betting.
The Kentucky House Licensing, Occupations, and Administrative Regulations Committee approved House Bill 175 without any dissent and only one member abstaining.
House Bill 175 will permit Kentucky racetracks and arenas to offer in-person, online, and mobile sports wagering, while also legalizing fantasy sports and online poker.
The original version of the bill specified that the initial cost of a sports betting permit would be $1 million, along with a $50,000 annual renewal charge.
The tax rate for in-person betting will be established at 10.25% of the total adjusted gross income from sports wagering, while the rate for online or mobile betting will be set at 14.25%. All taxes will be paid on a monthly basis.
Regarding fantasy sports, the cost of a permit will be $5,000, plus 6% of the preceding calendar year’s adjusted gross income or a fixed fee of $5,000. The bill does not specify a tax rate for fantasy sports.
Within the digital poker landscape, the price tag for a permit is a quarter of a million dollars, accompanied by an annual renewal charge of ten thousand dollars. Tax obligations will be levied at a rate of 6.75% of net poker earnings, payable on a monthly basis.
Proposal 175 has now advanced to the subsequent phase, but it necessitates a minimum of one hundred votes out of a total of sixty to secure approval from the Kentucky House of Representatives. Following this, it will be presented to the Senate for further examination.
Concurrently, Proposal 1254, which exclusively authorizes in-person sports wagering in North Dakota, has encountered greater opposition during its journey through the House.
The proposal garnered forty-six votes in support and forty-four against during its second reading in the state House, but it failed to achieve passage due to the absence of a constitutional majority. Nevertheless, after a reconsideration, the proposal ultimately passed with fifty-two votes in favor and thirty-eight opposed.
Proposal 1254 mandates that sports betting be categorized as a game of chance, and operators will confront varying tax rates contingent upon their total sports betting income. Operators generating quarterly revenue below one and a half million dollars will be subject to a tax rate of one percent, whereas facilities surpassing this threshold will face a two and a half percent tax rate.
The proposal also specifies that only a single entity can acquire a sports betting license at a given time within two or more closely associated organizations.
Indigenous American gaming establishments in North Dakota, alongside organizations that specifically assist charitable endeavors, will be granted permits to provide gaming services to generate funds for their diverse missions. The state presently lacks any commercial casinos.
Wagers on all professional and university athletic contests involving at least two participants will be authorized.
The North Dakota legislative body will discuss the proposed legislation after resuming their session on February 27th.
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