Several States are Struggling to Get Sports Betting Legislation Passed

Over the last 18 months, there have been a lot of success stories related to sports gambling in the U.S. States like New Jersey, Indiana, and Nevada have seen tremendous enthusiasm for sports gambling among its residents. In Jersey, the monthly sports gambling handling is nearing $1.0 billion a month with the NFL season just a few weeks away.

For the states that have successfully instituted legal sports gambling for their residents, the tax revenue is helping offset budget shortfalls. That alone should be enough to motivate nonparticipating states to get sports betting legislation approved. Still, there are some states that just can't seem to get things done despite the efforts of the legislative body.

The Battle Ensues in Florida

After Florida Governor Ron Desantis was able to broker a new compact with the Seminole Indian Tribe, there was a joyous outcry from sports bettors who believed the state would soon pass legislation that would legalize sports betting in Florida. Predictably, politics is dampening enthusiasm.

Under the terms of the new Indian compact, the Seminole Tribe would get the exclusive rights to provide sports betting access through its casinos and retail sports betting kiosks. In return, the state would get a large annual fee.

That doesn't sit well with a lot of state legislators and some of the nation's largest sports betting operators. As of now, bookmakers like DraftKings and Fanduel have taken to the courts to fight against being excluded from providing sports betting services in Florida. With additional support from the horse racing industry and plenty of Congresspeople, this battle is far from over.

Missed Opportunities in Other States

For a variety of reasons, it has become clear there will be no sports betting in at least four states where there was promise earlier this year. What each of these states has in common is the sports betting train was derailed by an issue that has nothing to do with sports betting.

In Texas, sports betting has had consistent support from residents, and the state's top sports franchises (Dallas Cowboys, Dallas Mavericks). Unfortunately, it never got support from a very conservative legislature led by Lieutenant Governor Dan Patrick. He told the press sports betting would “not see the light of day.” Despite his ominous warning, there is some momentum for sports betting starting to swell.

In Missouri, Sen. Denny Hoskins tried to tie sports gambling to the legalization of video lottery terminals. That ended up being a nonstarter that killed any hope of sports betting in Missouri until maybe 2022.

In Kentucky, several sports betting bills were introduced in 2021. Unfortunately, the state legislature only meets 30 days a year. This year, they chose to focus on COVID19 issues, putting sports betting off until maybe next year.

In Alabama, the state legislature got really close to legalizing sports betting and the opening of six retail casinos. That legislation was shot down because Republicans opposed having gambling tax revenue diverted to an expanded Medicaid program the Dems have been pushing.

There will be no sports betting in these five states in 2021.