With the World Cup as their backdrop, lawmakers in Pennsylvania and Washington, D.C. are taking advantage of the spotlight on sports to announce or try to move forward legislation intended to expand consumer protection for bettors.
In Pennsylvania, where online sports betting has been live since May 2019, a pair of lawmakers say they are preparing to revive two responsible gambling proposals and add a third in an effort to improve consumer protections and treat problem gambling as a public-health issue. Taken together, the proposals are similar to a new Colorado law that bans credit card funding and limits deposits, among other protections.
Reps. Tarik Khan and Jamie Flick announced plans for the “Pennsylvania Online Consumer Protection Act,” which would limit the number of deposits bettors can make in a 24-hour period, ban push notifications, and strengthen advertising guidelines. There are already two responsible gaming bills circulating in the statehouse — SB 265, which would ban credit card deposits, and SB 266, which would ban direct advertising to those on the voluntary exclusion list.
“Problem gambling is increasingly recognized as a public health issue because of the significant harm it can cause to mental health, financial security, and family stability,” the legislators wrote in a memo. “As online gambling continues to expand and operators employ increasingly aggressive marketing tactics, concerns continue to grow about its impact on debt, mental health, and overall well-being.
“Together, these bills take a balanced approach that protects consumers, supports responsible gaming, and treats problem gambling as the public health issue it is.”
Meanwhile, on Capitol Hill late last week, Connecticut Sen. Richard Blumenthal and Alabama Sen. Katie Britt again announced the “GAME Act” (Gambling Advertisement to Minors Enforcement), which would protect those under 18 from targeted gambling advertising. The proposal calls for up to a $100,000 penalty for wagering operators who violate it. The bill does not yet have a number or committee assignment.
In other news …
Illinois: The budget bill that got out of the legislature May 31 to bring state regulation to sports event contracts offered on prediction markets was sent to Gov. JB Pritzker Wednesday. He has 60 days to sign it, veto it, or let it become law without his signature.
The legislation would apply taxes on the same sliding scale (20%-40%) used for online sports betting. It also includes a per-transaction tax of 1.75% on each exchange wager for the first 5 million wagers, and 3.5% after that. The bill additionally lowers the $20 million application fee for a standalone mobile event wagering license to $15 million and regulates daily fantasy sports.
New York: A bill that will require sports betting operators to provide monthly account statements, including betting and use of responsible gaming tools, is out of the legislature and will be sent to Gov. Kathy Hochul. A 10329 unanimously passed both chambers late last week. Once Hochul receives the bill, she’ll have 10 days excluding Sundays to sign, veto, or take no action and let it become law.
North Carolina: Lawmakers are reportedly preparing to increase the tax on online sports betting from 18% of adjusted gross revenue to as much as 30%, per a Sunday WRAL report. According to the outlet, the increase will be included in the state’s budget proposal, and House budget writer Donny Lambeth confirmed that there is an agreement for an increase in both chambers. Last year, the Senate proposed doubling the tax, but the House balked.
“It’s been a tremendously successful policy in this state,” House Speaker Destin Hall, R-Caldwell told WRAL. “We want to be on the average of what other states are doing on a lot of these rates. A lot of the ideas are out there. I think we’re somewhat hesitant to tweak too much a program that’s worked pretty well for the state all things considered.”
The legislature is set to adjourn Aug. 31.
