Key US Gambling Bills Set to Expire as New Proposals Emerge for 2025

Efforts to expand legal gambling in the United States saw mixed outcomes in 2023, with Michigan and Ohio witnessing stalled initiatives, while South Carolina and Texas positioned new proposals for 2025. Here’s an overview of the key developments:

Michigan

Two bills introduced by Michigan Senators Sam Singh and Jeremy Moss aimed to adjust tax rates on betting and igaming revenues. Senate Bill 1193 proposed increasing the tax on wagering operators’ adjusted gross receipts (AGR) from 8.4% to 8.5%, affecting non-tribal operators only. Senate Bill 1194 suggested a 1% tax hike across igaming’s tiered tax brackets.

These measures, intended to boost city-directed tax revenue, will expire by the year’s end and are unlikely to reappear in 2025.

Ohio

Ohio Senator Niraj Antani introduced Senate Bill 312 in September to legalise online gambling. The proposal allowed the state’s 11 casinos to host digital platforms but failed to advance. Additionally, Antani’s effort to reduce the sports betting tax from 20% to 10%, raised in 2023, also stalled in committee. With Antani’s term ending, the future of these bills remains uncertain.

South Carolina

South Carolina legislators pre-filed two significant proposals for the 2025 session.

• HJR 3353: A constitutional amendment to legalise in-person pari-mutuel betting, sports betting, and casino games, pending voter approval.
• HB 3625: Focused on legalising digital sports betting, the bill sets an eight-platform cap, a 12.5% tax rate on gross gaming revenue, and stringent operator requirements, including a $1 million licensing fee and a presence in at least five other states.

The proposals also emphasise responsible gambling initiatives, earmarking 5% of tax revenue for such programs.

Texas

Texas remains a challenging landscape for gambling reform. Democratic Senator Carol Alvarado’s proposal (SJR 16) for a constitutional amendment includes provisions for seven destination casinos and a 15% tax on casino revenues. However, progress depends on a Republican majority’s support, a stance Lieutenant Governor Dan Patrick has resisted.

The proposal envisions large-scale casino developments in metropolitan areas like Dallas-Fort Worth, Houston, and San Antonio, prioritising economic growth. It leaves unclear specifics on tax rates or whether digital sports betting would be permitted.

Looking Ahead

While 2023 did not bring major expansions to US gambling legislation, the groundwork for significant changes in 2025 is evident. States like South Carolina and Texas are preparing ambitious proposals, but political and legislative hurdles may influence their outcomes.