Alaska to mull sports betting legalization with new bill
Legislators table new act allowing for up to three operators with a 12% GGR-based tax rate
Alaskan legislators have tabled a new bill allowing mobile sports betting and daily fantasy sports contests in the US’ most northerly state.
Alaska House Bill 385 was introduced to the state’s legislature on February 22 by Representative Adam Wool and provides both for the licensing of operators as well as their taxation and regulation by state authorities.
Licenses will cost $5,000 for an initial license as well as any potential renewal, with a 10 license limit on all licenses issued by Alaskan authorities.
The licensing process will fall under the control of a commissioner, with that individual empowered to issue and suspend licenses where applicable.
The commissioner can generate and approve regulations as well as imposing a maximum wager limit on all bets.
All systems used are required to be tested and independently certified by an external entity, with all prospective operators required to declare the interests of any beneficial owners.
Licensees will be required to display so-called house rules and signposting to responsible gambling-related support on their respective mobile apps.
Permissible forms of mobile sports gaming that may be conducted under a mobile sports gaming license include single-game bets, teaser bets, parlays, over-under, money-line, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets.
Under the bill, a licensee may accept and place layoff wagers by and with other licensees. A licensee placing a layoff wager with another licensee shall inform the other licensee that the wager is being placed by a licensee and disclose the licensee’s identity.
Bettors must be 21 years of age or older and physically located in the state or in a state, territory, or jurisdiction with which the commissioner has entered into a mobile sports gaming agreement.
Sportsbook operators will be taxed at a rate of 12% on their gross gaming revenue, with operators required to submit regulatory returns on the 15th of every month.
“If the winnings paid to a licensee’s patrons exceed the licensee’s gross revenue (GGR) for a month, the licensee may carry forward the negative amount for tax returns filed in subsequent months for up to three years from the date of the negative gross receipt,” the bill states.
“The negative amount of adjusted gross revenue may not be carried back to an earlier month and tax revenue previously received by the commissioner may not be refunded, unless the licensee surrenders its mobile sports gaming license and the licensee’s last return reported negative adjusted gross revenue,” it adds.
Daily fantasy sports operators will also be subject to the rate of 12% on their gross gaming revenue, with operators likewise required to submit regulatory returns on the 15th of every month.
Under HB 385, the Alaskan market can only open for business when the public have been notified and a minimum of three licenses have been issued by the commissioner.
The legislation has been passed to the Alaskan Labor and Commerce Committee for a full house review and potential amendment.