Indiana sports betting bill launched in the House
News on 9 Jan 2018
News on 9 Jan 2018
Indiana Representative Alan Morrison kept his December promise to launch an online and retail sports betting bill Monday, introducing to the House HB1325, which proposes to legalise intrastate sports betting contingent on the US Supreme Court overturning the provisions of the Professional and Amateur Sports Protection Act.
His bill follows a similar measure – S405 – launched earlier in the Indiana Senate (see previous reports).
Initial reports are that the bills are broadly similar, confining sports betting operations to land casino operators already licensed in the state, and setting a 90 day deadline on implementation following a favourable US Supreme Court decision in the New Jersey case. Punters will have to be at least 21 years of age.
Importantly, the Senate proposal permits interactive and mobile activity…and it does not specifically prohibit betting on collegiate events.
On the licensing fees, S405 proposes $500,000 or one percent of revenue, whichever is greater, an annual $75,000 fee, and annual state tax rate of 9.25 percent of GGR.
Morrison’s bill has an important difference, however; HB 1325 contains an “integrity fee” of 1 percent of total betting handle, in addition to a 9.25 percent tax on sportsbook GGR. This integrity payment is destined for sports governing bodies in general, and is motivated by a desire to combat any danger of illegal collusion or match fixing.
The professional sports leagues – most of which have fought wider sports betting availability in the States tooth and nail for years – are the likely beneficiaries of such fees, which could be considerable.
Morrison acknowledged to reporters that he had obtained input from the National Basketball Association in drafting his measure, and was receptive to advice and language that may make the sports leagues “more comfortable”.
The integrity fee would be a permitted tax deduction for operators, which softens the impact a little, but operators will no doubt point to the present 6.75 percent of GGR tax paid by Nevada sportsbook operators, along with a much-contested 0.25 percent of handle that the federal government levies.
