This week promises to be eventful for the gambling sector as several bills are set for hearings or are pending legislative action. The legal confrontation between state regulators and prediction market operators is heating up, coinciding with the approaching deadline for public comments to the Commodity Futures Trading Commission (CFTC).
Here’s a rundown of the key gambling stories to monitor this week.
Legislation: Various Sweepstakes and Prediction Market Bills Under Review
Confirmed committee hearings are taking place in Louisiana, Colorado, and Missouri:
- Louisiana (HB 883) – A bill aimed at banning sweepstakes casinos is slated for its initial Senate hearing on April 28, following its passage in the House earlier this month. This legislation specifically targets the dual-currency payment systems employed by sweepstakes casinos.
- Colorado (SB 131, SB 163) – Two significant bills designed to reform the sports betting landscape in Colorado will be presented in Senate hearings on April 27. Last week, both bills advanced from committee discussions, with lawmakers removing a provision from SB 131 that aimed to prohibit prop bets due to financial concerns.
- Missouri (SB 3533) – After being withdrawn from discussion last week, SB 3533, which proposes increasing the sports betting tax from 10% to 34%, is set for another hearing on April 28.
Key points to watch include whether Louisiana will progress with HB 883, if the Colorado Senate will approve SB 163 or SB 131, and if the prop bet ban will make a return in any form. Additionally, it remains to be seen if Missouri legislators will deliberate on SB 3533 and whether the tax increase provision will stay or be removed.
Pending Bills Awaiting Legislative Action
Several bills are also awaiting action across various states:
- Tennessee – Just before the legislative session concluded on April 24, two bills were passed: one targeting sweepstakes casinos and the other focused on insider trading in prediction markets. These bills now await formal enrollment and certification by legislative leaders before reaching the governor.
- Minnesota – Last week, lawmakers advanced three bills to the Senate floor: SF 4474 targets sweepstakes casinos, SF 4365 encompasses broader provisions along with a sweepstakes ban, and SF 4511 addresses prediction markets and insider trading.
- Louisiana – HB 53, which aims to target sweepstakes casinos through racketeering laws, is pending a third reading in the Senate after passing in the House.
- Iowa – SF 2289, which would provide state regulators with enhanced tools to combat illegal gambling, has passed both legislative chambers and is awaiting final approval in the Senate.
- Oklahoma – SB 1589, which modifies the state’s gambling laws to explicitly include online casino offerings that utilize dual-currency payment methods, is pending action in the House after passing the Senate in early March.
It remains to be seen if the two Tennessee bills will be formally enrolled and sent to the governor, and whether any other bills will gain traction among lawmakers.
Prediction Markets: Regulatory Timelines and Legal Proceedings
The CFTC's deadline for public comments is fast approaching. Earlier this year, the CFTC requested public feedback on proposed regulations for prediction markets, with the comment deadline set for April 30. Interestingly, the comment submission page is currently inaccessible, displaying an error message.
Previous reviews of early comments by Gambling Insider indicated a largely critical stance, with both institutional stakeholders and a growing number of private citizens expressing concerns regarding gambling practices, manipulation, and public welfare.
Updates from the CFTC regarding the volume and sentiment of submissions are anticipated, along with indications of whether the CFTC will take these comments into account or clarify the definition of “event contracts.”
Additionally, litigation surrounding prediction markets has intensified, with multiple lawsuits filed and court decisions emerging on April 24.