EKG halves sports betting legalization projection amid Minnesota and Georgia struggles
Industry research and consultancy firm explains how worsening reputation of online gambling in the US has hindered legalization process
Eilers & Krejcik Gaming (EKG) has cut its projected number of sports betting states to be legalized by half over the next five years.
Originally, EKG had estimated that over the course of the next half a decade, the US would see the launch of two new states each year, but that figure has since been reduced to one per year in its US Sports Betting Policy Monitor report.
The change stems from the recent unsuccessful legalization pushes in states such as Georgia and Minnesota, which has prompted the “inescapable conclusion” that the runway in the remaining states will prove more difficult than first expected.
EKG also cited the reputation online gambling currently has across the nation as a detrimental factor when it comes to further progress.
South Carolina was identified as one state that, in previous projections, was tipped by EKG to legalize within the next five years.
The Palmetto State was projected to legalize retail-only betting near the end of the five-year window, but that theory has since been scrapped due to a lack of lawmaker interest, according to EKG’s report.
In turn, the next five years are expected to be significantly slower in terms of the total addressable market growth for online sportsbooks.
As one of the states highlighted by EKG as struggling to get legislation over the line, last month Minnesota representative Zack Stephenson’s bill aimed to give the state’s native American tribes exclusive access to offer online sports betting licenses, with a 20% tax rate.
However, it failed to garner majority approval before the end of the 2024 legislative session.
Soon after, Stephenson took to social media to claim that his bill represented “meaningful progress that can be a foundation for the future.”
Similarly, one month prior, Georgia’s sports betting legalization journey suffered a similar fate. Both Senate Bill 386 and Senate Resolution 579 failed to be passed before the state’s final legislative session on March 28.
A number of reports suggested that the reason for the holdup stemmed from disputes over where the proceeds of sports betting would be distributed.
Republican representative Kasey Carpenter revealed as much, explaining: “I just hate to see it all fall apart over how the money is going to be divided because, at the end of the day, I think it’s going to provide funds that aren’t being provided to education and in the long run will be better for all Georgians.”
North Carolina was the latest state to go live with online sports betting in March but saw handle plummet in May after a strong April.