Alaska remains in the minority of states that have yet to legalize sports betting, but that could change during this legislative session, as a new mobile gaming bill has emerged that must be passed by the end of the session for it to become law.
Rolling the Dice Again
Representative David Nelson introduced House Bill 145 during the last legislative session, but it gained as much traction as a rear-wheel drive sports car in the icy Alaskan snow. The bill was referred to Alaska’s House Labor & Commerce and Finance committees, but nothing more was heard …until now.
After Representative Nelson recently added Representative Mike Prax as a cosponsor, the bill has been resurrected. Although passage is unlikely, at the very least, the topic is being broached yet again.
Governor Dunleavy Backs New Revenue Streams
But the prospects are not all doom and gloom, considering that Governor Mike Dunleavy is supportive of new revenue streams, such as a state lottery and sports betting initiatives. In 2020, Governor Dunleavy proposed a comprehensive lottery bill that also encompassed sports betting.
“In the face of low state revenues, my administration has been actively seeking new revenue sources to diversify our economy. Not only does this legislation have the potential of creating new business opportunities, the profits generated from lottery activities will be designated to K-12 education, domestic violence prevention programs, drug abuse prevention programs, foster care, and homelessness.”
That state-run lottery and the sports betting bills in both chambers, HB 246 and SB 188, failed to pass muster in the legislature, but Dunleavy remains the governor, and from all reports, his enthusiasm for additional revenue streams has not waned.
Anatomy of a Sports Betting Bill
According to the framework of HB 145, up to 10 sports betting licenses would be available, subject to the vetting process and approval of the Alaska Department of Revenue, which would be the entity tasked with overseeing the industry and collecting license fees of $100,000 annually and a 20% tax on net revenue.
Sportsbook Eligibility Requirements
Only sportsbooks that hold sports betting licenses, or partner with those that do, in at least three other states would be considered. State and federal criminal background checks would also be integral to the approval process.
“If there are more applicants than available licenses, the commissioner shall issue licenses to the applicants that the commissioner determines are the most qualified based on each applicant’s past relevant experience and projected adjusted gross revenue and the projected amount of tax revenue the applicant is expected to generate,” the bill reads.
Age Limits and Responsible Gambling Rules
Only those age 21 and older would be allowed to wager through the sports betting platforms, and advertising aimed at minors would be expressly prohibited. Moreover, each licensee would be required to list responsible gambling resources as one of the administrative guardrails.
And in a preemptive step, municipalities would be barred from levying their own taxes, à la Chicago imposing an additional 10.25% tax on profits generated within the Windy City. The bill has until the end of the legislative session on May 20th to pass.
