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Proposed by state Reps. Cody Smith and Phil Christofanelli, the two bills would set up similar regulations for Sports Betting, both online and in casinos. The committee voted unanimously to pass Smith's bill after voting down three amendments, and voted 8-1 to pass Christofanelli's, with state Rep. Peter Merideth voting against it.
State Rep. Jon Carpenter said he supported both because he wants to get Sports Betting set up this year. "I'm not 100 percent sold on either of these bills as of today, but I do think it would be good to get this done this year," he said, as reported by the News Tribune.
Two key differences are that Smith's would require Sportsbooks to use official league data to score bets, except for prop bets, and has a higher tax rate and annual fees than Christofanelli's. In a hearing last week, sports leagues preferred Smith's bill, while the casino industry pushed for Christofanelli's.
Meredith proposed raising the tax on Smith's bill from 9 to 15 percent, which he said would be more in line with other states. The average rate for states where Sports Betting is already legal is just under 20 percent, Merideth said, citing the National Conference on State Legislatures. Tax rates range from 6.75 percent in Iowa and Nevada to 51 percent in Rhode Island, with four states taxing over 20 percent, four taxing less than 10 percent, and four taxing between 10-20 percent, according to the conference.
The committee rejected Merideth's amendment, and Carpenter offered a compromise at 12 percent, which was also rejected. Merideth questioned why the Sports Betting rate would be set lower than the state's 21 percent gambling tax. State Rep. Dirk Deaton, R-Noel, argued that because there is already a strong black market for Sports Betting, and if the tax rate is too high, people won't switch over to the legal system.
In both bills, the tax would be applied to adjusted gross revenue, so the books would pay it, not the bettor.
Meredith also proposed adding a referendum clause to Smith's bill so voters would decide whether the state legalizes Sports Betting. Every expansion of gambling, small and large, has been sent to the voters, Merideth argued.
Proposed by state Reps. Cody Smith and Phil Christofanelli, the two bills would set up similar regulations for Sports Betting, both online and in casinos. The committee voted unanimously to pass Smith's bill after voting down three amendments, and voted 8-1 to pass Christofanelli's, with state Rep. Peter Merideth voting against it.
State Rep. Jon Carpenter said he supported both because he wants to get Sports Betting set up this year. "I'm not 100 percent sold on either of these bills as of today, but I do think it would be good to get this done this year," he said, as reported by the News Tribune.
Two key differences are that Smith's would require Sportsbooks to use official league data to score bets, except for prop bets, and has a higher tax rate and annual fees than Christofanelli's. In a hearing last week, sports leagues preferred Smith's bill, while the casino industry pushed for Christofanelli's.
Meredith proposed raising the tax on Smith's bill from 9 to 15 percent, which he said would be more in line with other states. The average rate for states where Sports Betting is already legal is just under 20 percent, Merideth said, citing the National Conference on State Legislatures. Tax rates range from 6.75 percent in Iowa and Nevada to 51 percent in Rhode Island, with four states taxing over 20 percent, four taxing less than 10 percent, and four taxing between 10-20 percent, according to the conference.
The committee rejected Merideth's amendment, and Carpenter offered a compromise at 12 percent, which was also rejected. Merideth questioned why the Sports Betting rate would be set lower than the state's 21 percent gambling tax. State Rep. Dirk Deaton, R-Noel, argued that because there is already a strong black market for Sports Betting, and if the tax rate is too high, people won't switch over to the legal system.
In both bills, the tax would be applied to adjusted gross revenue, so the books would pay it, not the bettor.
Meredith also proposed adding a referendum clause to Smith's bill so voters would decide whether the state legalizes Sports Betting. Every expansion of gambling, small and large, has been sent to the voters, Merideth argued.
