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BPAA State Policy Update - June 1

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  • Center for Public Integrity: What the new sports betting decision means for states and sports leagues It’s game on for the race to cash in on sports betting. The U.S. Supreme Court sided Monday with New Jersey in its six-year quest to allow legalized sports betting, breaking up Nevada's near-monopoly in the market and paving the way for other states to break into the billion-dollar business. In the lead-up to Monday’s decision, five states — Connecticut, Mississippi, New York, Pennsylvania, West Virginia — along with New Jersey had already passed legislation to allow legalized sports betting, contingent on the Supreme Court’s favorable ruling. Similar bills have also been introduced in 14 other states nationwide since the beginning of 2017, according to a Center for Public Integrity review. The bills either explicitly allow legalized sports gambling or lift any prohibitions against it. Now, with the green light, more states will likely join in. Gambling Compliance, a trade publication, expects that up to 37 states will eventually legalize sports betting and reap potential tax benefits. Those efforts, in turn, will attract interest from gambling companies and even the major sports leagues themselves in influencing the nitty gritty details, a tried-and-true playbook that is followed in statehouses around the nation through campaign donations, wining-and-dining by lobbyists and model legislation handed out by special interests.
  • Delaware: Delaware Sports Betting Goes Live June 5; Will Be First To Launch Outside Of Nevada: Delawareis going to be the First State … with single-game wagering outside Nevada. Gov. John Carney announced Thursday that Delaware Park, Dover Downs Hotel & Casino, and Harrington Raceway & Casino will offer single-game sports betting starting June 5. That would allow Delaware sports betting to beat New Jersey to launch. “Delaware has all necessary legal and regulatory authority to move forward with a full-scale sports gaming operation, and we look forward to next week’s launch,” Carney said in a statement. “We’re hopeful that this will bring even more visitors into Delaware to see firsthand what our state has to offer.” Delaware officials signaled earlier this month that they saw no legal hurdles preventing them from starting full sports betting. The state passed a law in 2009 allowing sports wagering except on Delaware-based teams.
  • Oregon: Delaware Sports Betting Goes Live June 5; Will Be First To Launch Outside Of Nevada: But a ruling Monday by the U.S. Supreme Court has opened the door for states to unveil legal betting on real games, too -- the type of wagering that bettors in this state once enjoyed for nearly two decades. In a case brought by New Jersey, which has sought to allow sports gambling at racetracks and casinos, the court struck down the Professional and Amateur Sports Protection Act, a 1992 law that prohibited state-run sports gambling. It could create wide-ranging ramifications for professional leagues and the NCAA, which has long opposed sports betting to the point it does not hold championship events in states that allow it. "While we are still reviewing the decision to understand the overall implications to college sports, we will adjust sports wagering and championship policies to align with the direction from the court," Donald Remy, the NCAA's chief legal officer, said in a statement…That said, the Oregon Lottery Commission has broad authority to institute news games. Its strategic plan already includes rolling out virtual sports betting - a random numbers game akin to keno or video lottery - in 2019, and working toward real sports betting by 2020.
  • Pennsylvania: : PA Casinos Can Start Applying For Sports Betting Licenses Today: The Pennsylvania Gaming Control Board announced today “that it has notified casino license holders that they can begin submission of petitions requesting approval to conduct sports wagering.” The news comes as state regulators adopted their first regulations as it pertains to sports gambling on Wednesday. The PGCB said more regulations will be adopted in meetings in the coming months. “The actions taken by the Board are the first in our efforts to launch sports wagering in Pennsylvania as soon as possible,” said PGCB Executive Director Kevin O’Toole. “In the coming months, we expect to regularly ask the Board for approval of additional temporary regulations that will move us toward a launch of this new gaming initiative.” Any casino who receives a license will be able to conduct PA sports betting will be able to take place at any current casino in the state (there are currently 12 and a 13th on the way) as well as online via mobile sports betting apps. The regulations also apparently allow wagering at off-track betting facilities in the state. The pricetag to offer wagering in the state is steep. The initial fee to get approval to offer sports gambling is $10 million. The effective tax rate is 36 percent on sports betting revenue, which would be the highest rate in any jurisdiction in the world.
  • Illinois: Rahm thinks latest Chicago casino bill is a loser, City Hall adviser says A gaming expansion bill shot down in an Illinois House committee on Monday — which would have added a Chicago casino — now has a big opponent: Mayor Rahm Emanuel. With adjournment of the Illinois General Assembly quickly approaching, the House Executive Committee on Monday voted 5-4, one vote shy of advancing the revived measure that has been in the works since last year. Among other things, the measure would create six new casinos, including one in Chicago; expand existing riverboats; allow for increased winnings on video gaming; and allow for additional gambling, including slot machines, at horse racing tracks. Profits from a Chicago casino would go to police and fire pensions. State Rep. Bob Rita, D-Blue Island, isn’t giving up on the measure and may call the gaming measure for a vote before adjournment on Thursday, according to Ryan Keith, a spokesman for Rita. Keith said Rita is still speaking with colleagues about possible changes from the latest version to try to find a path forward in the next couple of days. No one from the city has reached out to Rita to express any objections, Keith said. But a top mayoral adviser, who asked to remain anonymous, said on Tuesday that Emanuel opposes the casino bill in its existing form and believes it’s going nowhere in the spring session. Rita on Monday said the legislation didn’t address fantasy sports betting, Internet gaming or sports betting but that he expects to address those industries, and their regulations, in the future.
  • Legislative Tracker: Sports Betting: Click here to view the Legal Sports Report’s legislative tracker:


  • Iowa: Bloomberg Government: Iowa Governor Signs Tax Reform & Conformity Bill:Iowa Gov. Kim Reynolds (R) approved an extensive tax overhaul and conformity law, saying the measure would provide individual and corporate taxpayers with $2.16 billion in relief over six years. Reynolds said the tax legislation, Senate File 2417, would bring Iowa into general conformity with recent changes to the Internal Revenue Code, including the 2017 federal tax act (Pub. L. No. 15-97), and provide tax savings to almost every taxpayer in the state. “This bill brings immediate relief. It's simple, it's transparent, and it's fair for main street. But most importantly, it's sustainable for our state budget,” Reynolds said May 30 during a bill-signing event at tablet computer manufacturer MobileDemand LC in Hiawatha, Iowa. “The new tax plan is fiscally responsible for the long term. It provides meaningful relief for middle class families while still ensuring we can fund our key priorities like education, health care, and public safety.” On the individual side, the legislation will reduce rates across Iowa's nine brackets next year and provide further reductions in four years. The top rate, for earnings above approximately $75,000, will eventually shift from 8.98 percent to 6.5 percent. All four brackets of the corporate income tax rate will be reduced in 2021 under the new law, with the top rate moving to 9.8 percent from 12 percent.
  • Illinois: Illinois Senate Passes State, Local Deduction Workaround Measure: The Illinois Senate passed legislation circumventing the $10,000 deduction cap on state and local taxes, despite recent Trump administration threats to challenge states enacting creative plans to skirt features of the new federal tax law. The Senate overwhelmingly approved H.B. 4237, which was described by chief sponsor Sen. Julie Morrison (D) as a “New Jersey model” SALT workaround measure. The bill passed May 24 with little real debate by a vote of 54-1. “This is a bill that will do a lot to benefit tax relief in the State of Illinois,” Morrison said prior to the vote. The measure passed the House by a 93-15 vote April 18, but it returned to the chamber due to an amendment added to the Senate version. A legislative insider said House sponsors are comfortable with the modifications made by the Senate and will move the bill quickly. It is unclear how Gov. Bruce Rauner (R) will deal with the proposal, and administration officials didn't immediately respond to a request for comment. The measure, however, appears to have adequate support to erase any potential veto by the governor. H.B. 4237 would direct the state to create an income tax credit for dollars contributed to the new Illinois Education Excellence Fund during a taxable year. Funds contributed in this fashion, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts, would be used by the state for public purposes. Similarly, a property tax credit would be created for dollars contributed in lieu of property taxes to any local government charitable funds. The Senate amended these features slightly to ease fears expressed by school districts over the proper distribution of any collected funds. The Senate amendment specified that the income tax credit would be equal to 90 percent of any contribution by the taxpayer, instead of 100 percent. The Senate also required that dollars collected in the education fund must be transferred to the Common School Fund on an annual basis.


  • Tax Foundation: How High Are Beer Taxes in Your State?:With summer quickly approaching, we can expect to see a seasonal uptick in beer sales, thanks to much-anticipated barbecues, baseball games, and the like. But when we fork over cash to buy yet another six-pack, how much is being used to cover the expense of brewing the beer itself? Less than one might think. According to the Beer Institute, “Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.” Research has shown that approximately 40 percent of the retail price of beer is dedicated toward covering all the applicable taxes. In addition to the federal excise tax on beer (which ranges from $0.11 to $0.58 per gallon based on production, location, and quantity), all fifty states and the District of Columbia collect their own tax on fermented malt beverages. Unlike general sales taxes, which are tacked on after the price of goods is subtotaled, most states collect beer excise taxes from retailers according to the quantity of beer sold (usually expressed as a rate of dollars per gallon), and vendors in turn pass those costs along to consumers in the form of higher prices. Because beer taxes are often collected at other points in the supply chain, the only tax a consumer will see printed on his or her receipt is any applicable state or local sales tax that applies to the purchase. However, some states specify higher alcoholic beverage sales tax rates (that apply to beer, wine, and spirits) in lieu of the general sales tax rate. For example, in Minnesota, beer retailers are taxed at $0.15 per gallon, and then an alcohol-specific sales tax of 9 percent (instead of the state’s 6.875 percent general sales tax rate) is applied at the point of sale.
    • The map shows the state beer excise tax rate in all fifty states and the District of Columbia. Rates vary widely by state: as low as $0.02 per gallon in Wyoming and as high as $1.29 per gallon in Tennessee. Click here to view the map:
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