Regulatory Report: 11 gambling-related bills in progress in U.S. legislatures during October

Wednesday, November 6, 2024 4:21 PM
  • Commercial Casinos
  • Igaming
  • Sports Betting
  • Debra Jobes — Gaming Division Lead, Regology

Going into 2024-Q4, there are 4 state legislatures that are still hard at work in Massachusetts, Michigan, New Jersey, and Pennsylvania. For the month of October 2024, there were a total of 11 gambling-related bills that went through various stages of the lawmaking process.1 The Michigan State Legislature passed 4 bills into law this month with 2 bills passed by the first body of origin. This report will focus primarily on bills that became law in Michigan, New York, and Pennsylvania. Also featured are recent bills that were introduced in Alabama, New Jersey, and Washington, D.C.2


Win, Lose, or Draw: Legislation that Became Law

Advertising:

New York – AB 1118 is an Act to amend the racing, pari-mutuel wagering and breeding law to require all advertisements for gambling and sports betting to include warnings about the potential harmful and addictive effects of gambling. Additionally, the Act requires the state gaming commission to cooperate with the commissioner of addiction services and supports to ensure that all advertisements for gaming activity state a problem gambling hotline number. The effective date of this Act is the sixtieth day after it becomes law, and any necessary additions, amendments, or repeals of rules or regulations for its implementation are authorized to be made and completed on or before the effective date. Note: AB 1118 (10/1/2024) Became Law.

 

Compulsive Gambling:

Michigan – SB 931 is an Act that amends the Compulsive Gaming Prevention Act of 1997 by modifying Michigan Compiled Laws, § 3 (MCL 432.253) established within the Department of Treasury in the state of Michigan. The Act outlines the sources of funding for the compulsive gaming prevention fund, which include appropriations from the state services fee fund, a percentage of the net revenue in the state lottery fund, a percentage of the Michigan agriculture equine industry development fund, and appropriations from the internet gaming fund and internet sports betting fund. This law also specifies that a portion of the funds in the compulsive gaming prevention fund may be distributed annually to the domestic and sexual violence prevention and treatment board, while the remaining funds are to be used for the treatment, prevention, education, training, research, and evaluation of pathological gamblers and their families, as well as to fund the toll-free compulsive gaming helpline number. The state treasurer is responsible for receiving and investing the funds, and any money remaining in the compulsive gaming prevention fund at the end of the fiscal year does not lapse to the general fund. Additionally, the Department of Health and Human Services is authorized to establish fees for the treatment of pathological gambling addictions. Note: SB 931 (10/8/2024) Became Law.

 

Horse Racing:

Pennsylvania – HB 2561 is an Act that amends 3 Pa. Cons. Stat. § 9311(h)(3), specifically in relation to race horse industry reform and the State Horse Racing Commission. The amendment states that regulations promulgated by the commission shall be deemed temporary regulations and not expire for a period of six years following publication. These temporary regulations are exempt from certain provisions of the Commonwealth Documents Law, the Commonwealth Attorneys Act, and the Regulatory Review Act. The Act takes effect immediately. Note: HB 2561 (10/16/2024) Became Law.

 

iGaming:

Michigan – SB 934 is an Act that amends the Lawful Internet Gaming Act, § 16 (MCL 432.316), and establishes the Internet Gaming Fund. The new law authorizes the State Treasurer to receive money or other assets required to be paid into the fund and to direct its investment. Furthermore, the Michigan Gaming Control Board is designated as the administrator of the fund for auditing purposes. It is authorized to expend money from the fund to regulate and enforce internet gaming under the Lawful Internet Gaming Act; administer and enforce the millionaire party activity under the Traxler-McCauley-Law-Bowman Bingo Act; allocate $3,000,000.00 annually to the Compulsive Gaming Prevention Fund created under the Compulsive Gaming Prevention Act; allocate $2,000,000.00 annually to the Christopher R. Slezak First Responder Presumed Coverage Fund created under the Worker’s Disability Compensation Act of 1969; and to deposit any remaining funds into the State School Aid Fund established under the State Constitution of 1963. Note: SB 934 (10/8/2024) Became Law.

 

Lottery:

Michigan – SB 926 is an Act that amends the Michigan Compiled Laws (MCL 432.41) in relation to gaming and the state lottery fund in Michigan. The Act modifies the distribution of funds from the state lottery, specifically regarding expenditures to the compulsive gaming prevention fund. It stipulates that ten percent of each year’s state lottery advertising budget, up to a maximum of $2,000,000.00, must be deposited into the compulsive gaming prevention fund created in the Compulsive Gaming Prevention Act, §3 (MCL 432.253).

The law also addresses the creation and management of the state lottery fund, the treatment of joint enterprise revenue, use of earnings from lottery prizes, distribution of new revenue, and the investment authority of the state treasurer. Note: SB 926 (10/8/2024) Became Law.

 

Sports Betting:

Michigan – SB 933 is an amendment to the Lawful Sports Betting Act, § 16, which pertains to the creation and administration of the Internet Sports Betting Fund. The state treasurer is now responsible for receiving money or assets to be deposited into the fund and directing its investment, with the Michigan Gaming Control Board designated as the fund administrator for auditing purposes. This fund will be used for various purposes, including the regulation and enforcement of internet sports betting. After covering the costs of regulation and enforcement, $1,000,000 is allocated annually to the compulsive gaming prevention fund. Additionally, $2,000,000 is allocated annually to the Christopher R. Slezak First Responder Presumed Coverage Fund. Any remaining money in the fund after these allocations is to be deposited into the state school aid fund. Note: SB 933 (10/8/2024) Became Law.

New Player In the Game: Recently Introduced Legislation

Charitable Organizations, Paper Raffles and Bingo:

Alabama – HB47 is a proposed constitutional amendment in Alabama that aims to authorize, license, tax, and regulate traditional paper raffles and paper bingo for noncommercial charitable purposes. The bill seeks to amend the Constitution of Alabama 2022, § 65, which currently prohibits the sale of lottery and gift enterprise tickets. This bill would allow the legislature to pass laws enabling paper raffle and bingo activities. If ratified, the amendment would permit the use of cardboard, paper, plastic, or similar materials for traditional raffles and bingo, but only for fundraising purposes by charitable organizations. The proposed amendment would become valid if approved by a majority of qualified electors voting in an election. Note: HB 47 (10/1/2024) Introduced.

 

Sports Wagering:

New Jersey – AB 4905 aims to prohibit sports wagering licensees from offering player-specific proposition bets on college sports or athletic events. The bill defines a proposition bet as a side wager on a specific aspect of a sport or athletic event that does not involve the final outcome. Player-specific proposition bets may include wagers on the statistical performance of individual players or which player will score first. The bill is intended to address concerns about the harassment of student-athletes and maintain the integrity of college sports, as advocated by the President of the National Collegiate Athletics Association (NCAA). Note: AB 4905 (10/17/2024) Introduced.

 

1Regology database statistics filtered by jurisdiction [US federal/50 states], status [applicable bills only], and time period [October  1 – 31, 2024].

2Bills included in this category are reported “active”, even though the state legislature may have adjourned during this time period. Regology uses the official status reported by each individual state legislature according to their policies and procedures.