This week has seen significant advancements in gambling legislation across several states, focusing on advertising, sports betting competition, skill games, and protections for underage gamblers.
In Illinois, lawmakers approved a tax on contracts related to sports event prediction markets as part of the state’s budget for FY2027. This new legislation introduces a 1.75% tax on exchange wagers, which increases to 3.5% after the first 5 million contracts are sold each year. Additionally, it establishes licensing and tax obligations for Daily Fantasy Sports (DFS) operators. This tax comes amidst ongoing legal disputes involving prediction markets, with the Commodity Futures Trading Commission having previously sued Illinois.
Meanwhile, in Colorado, Governor Jared Polis enacted two significant bills aimed at enhancing responsible gambling measures and regulatory oversight. The first bill, SB 131, introduces a ban on gambling-related push notifications and text messages directed at consumers, alongside implementing deposit limits. The second bill, SB 163, expands the authority for oversight and compliance within the state's gaming sector, making Colorado the first state to prohibit such notifications from licensed operators.
In New York, the Assembly passed the “No Gambling Ads for Kids Act,” which seeks to limit minors' exposure to gambling advertisements. This legislation prohibits licensed operators from displaying gambling ads to individuals under 18, covering areas such as sports betting, prediction markets, and loot boxes. The bill is now set to be reviewed by the Senate.
Additionally, the New York Senate has passed a bill aimed at bolstering protections against underage sports betting. This legislation mandates the creation of an exclusion list by the New York State Gaming Commission, allowing parents or guardians to prevent minors from using identifying information to create mobile sports wagering accounts. It also enforces stricter age verification protocols.
Lastly, the Rhode Island Senate has approved a bill to broaden the state's sports betting market, which is currently limited to a single operator, Sportsbook Rhode Island. This expansion could pave the way for increased competition within the state.