The Future of Gambling in the US: Key State Bills to Watch in 2025

As 2024 draws to a close, the landscape for US gambling legislation remains uncertain. While there were no significant expansions in legal digital sports betting or iGaming this year, Michigan and Ohio lawmakers made late attempts to advance changes. At the same time, lawmakers in South Carolina and Texas have pre-filed sports betting bills in anticipation of the 2025 legislative sessions.

Legislative Pauses in Michigan and Ohio

For Michigan and Ohio, the clock is ticking as their current gambling bills face expiration at midnight on December 31st. In Michigan, Senate bills 1193 and 1194 propose minor tax increases for sports betting and iGaming revenue. Specifically, SB 1193 suggests a 0.1% increase in the adjusted gross receipts (AGR) tax for non-tribal betting, while SB 1194 proposes a 1% tax hike for iGaming, impacting operators across various revenue tiers. However, these bills are set to die at the close of the year, with no guarantees that they will be revisited in 2025.

In Ohio, State Senator Niraj Antani’s efforts to expand gambling via SB 312 and reduce the sports betting tax via another proposal also faltered. Although these bills were introduced, they failed to gain traction in the 2024 session, and Antani, a key figure behind Ohio’s sports betting law, has reached his term limit. With no clear successor, the fate of these proposals in 2025 remains in doubt.

New Bills on the Horizon

Unlike Michigan and Ohio, South Carolina and Texas are taking a proactive stance, with lawmakers pre-filing sports betting bills ahead of the 2025 sessions. These proposals, though lacking the momentum often seen behind successful gambling bills, signal a potential shift in both states’ regulatory landscapes.

In South Carolina, the legislature has repeatedly debated sports betting since the 2018 repeal of PASPA, but a consensus has yet to emerge. This time, two key proposals have been pre-filed. One, HJR 3353, is a constitutional amendment that would send the decision to voters, allowing for in-person pari-mutuel betting, legal sports betting, and casino games. The second proposal, HB 3625, focuses solely on digital sports betting, limiting the number of platforms to eight and implementing a 12.5% tax on gross gaming revenue. A portion of the tax revenue would be allocated to problem and responsible gambling initiatives. However, strict licensing requirements could prevent some operators from entering the market, as companies must already be live in at least five other states to qualify.

Turning to Texas, the push for expanded gambling faces significant opposition, particularly from Lieutenant Governor Dan Patrick, who has expressed firm resistance to legislation not backed by a Republican majority. Nevertheless, Democratic Senator Carol Alvarado has filed SJR 16, a comprehensive gambling bill that would allow for sports betting and seven destination-resort casinos. If passed, the bill would also establish a state gaming commission and set a 15% tax rate on casino gross gaming revenue. However, the bill’s vagueness regarding digital sports betting and tax rates means that much remains up in the air.

A Glimpse into the Future

With so many proposals still in limbo, 2025 promises to be an interesting year for US gambling legislation. Whether these new bills gain traction will depend on both political maneuvering and public sentiment, as the push for regulated sports betting and iGaming continues to build momentum across the country.

In the end, the evolving gambling landscape will undoubtedly lead to more states reassessing their approaches. While the road ahead may be filled with obstacles, the long-term potential for a nationwide shift towards legalized and regulated sports betting remains undeniable. The coming legislative sessions will be crucial in determining how and when this transition unfolds.