Arguing that money is already leaving Alaska via black-market digital sports betting platforms, Rep. David Nelson and industry representatives testified in support of a legal digital sports betting bill last Friday.
Alaska lawmakers held the hearing five days before the session was set to adjourn. The House Labor and Commerce Committee did not take any action, and there was no discussion of the bill. Bills introduced during the 2025 session can be carried over to 2026, so it is possible that the hearing will be the only one this session and the issue will be revisited next year.
HB 145A was introduced March 21, and a similar bill was introduced in the Senate May 14. No hearing has been scheduled in the Senate. The House bill would allow for digital wagering only, and would cap the number of platforms at 10.
Proponents: Consumers prefer a legal market
In introducing the bill, Nelson said that according to the American Gaming Association, most Americans prefer to bet on the legal market because they believe they are better protected. He said that $6.7 billion in illegal gambling revenue is already leaving the state.
“Alaska needs more diverse sources of revenue, and this is one of them,” Nelson said. “Legalized sports betting is a simple solution for a market that already exists in the state.
“This would bring revenue that is currently going out of state.”
John Pappas, on behalf of GeoComply, testified that the company identified 126,933 geolocation checks in Alaska between Jan. 1, 2024 and May 1, 2025, a 60% increase in checks against a previous measure. The numbers, he said, indicate a strong interest in wagering from those in Alaska.
Under the House bill, operators would be taxed at 20% of gross gaming revenue and would be charged a $100,000 application fee and annual renewal. Operators must be licensed in at least three other U.S. jurisdictions to be considered for a license.
Bill allows for credit-card funding
How bettors should be able to fund accounts has been a controversial subject, with nine of the 40 live U.S. jurisdictions prohibiting funding accounts with credit cards. Alaska’s House bill would allow credit-card funding.
According to a Department of Revenue fiscal note, legal digital betting would bring in between $1 million and $18 million in additional annual tax revenue beginning in 2027, and would cost the state $147,900 in additional costs.
For comparison, Vermont and Wyoming — both of which are smaller states by population — have collected $8.2 million and $3.9 million in tax revenue, respectively, since launch. In Vermont, operators are taxed between 31%-33%, and in Wyoming, operators are taxed at 10%.
