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June marks a critical month for potential legislative changes in the U.S. gaming industry, with decisions due on proposed bills and budget measures looming large in Connecticut, Louisiana and New Jersey, among other states.
In total, 12 states are scheduled to end their legislative sessions during June, the majority of which have pending gaming bills actively under consideration.
One of the earliest decisions will come from Connecticut, where lawmakers have until June 4 to pass a wide-ranging gaming reform bill that would aim to prohibit expressly sweepstakes casino gaming in the state.
Senate Bill 1235 cleared the Senate on May 22, but it still must be approved by the House this week and potentially concurrence from the Senate with any potential House amendments.
Previous versions of the bill included stronger advertising requirements, an explicit ban on lottery courier services and authorization of multistate internet gaming, but those provisions were not included in the Senate-passed version.
Another potential sweepstakes ban is on the table in Louisiana, where Senate Bill 181 would prohibit any games that “utilize a dual-currency system of payment allowing the player to exchange the currency for any prize” and “simulates any form of gambling”, including casino-style games or sports wagering.
That legislation cleared the Senate unanimously on April 29 and would need to receive a favorable vote in the House before the session ends on June 12.
The Pelican State also has pending legislation that would increase the state’s tax rate on sports wagering revenue from 15 to 21.5 percent.
That legislation passed the House on May 20, reducing an initially proposed hike to 32.5 percent, and would also need two-thirds of the Senate’s support to pass.
Although other states may have a softer deadline with the end of session being a tentative date, Louisiana is notable in that the session legally must end no later than 6pm on the scheduled dates.
In fact, in 2019 the clock ran out on the session with legislation to permit sports betting being discussed on the floor, stalling the state’s sports-betting launch for another two years.
Tax Increases Also On The Table
The month of June will be critical for the emerging trend of tax increases for sports betting.
Another state where gaming tax hikes will be under consideration is New Jersey, where the state’s budget is scheduled to be passed ahead of the first day of the new fiscal year on July 1.
Governor Phil Murphy proposed increases to the state’s online sports betting and online casino gaming taxes as part of his executive budget in February.
Murphy’s proposal would increase both online tax rates to 25 percent, increasing the state’s sports-betting tax from 13.5 percent and the online casino tax from 15 percent.
While Murphy’s Democratic Party holds majorities in both chambers of the legislature, the plan has not received much public support from lawmakers, and with Murphy being a lame-duck governor offering up his final executive budget in office, there may not be as much incentive for legislators to follow his lead.
However, a poll conducted by Stockton University in April found more public support for increasing the wagering taxes than other proposed increases, with 58 percent of respondents in favor.
Given New Jersey’s undoubted influence on sports betting and iGaming policy over the past decade, where lawmakers ultimately land in their final budget bill will be closely watched across the industry.
In terms of land-based gaming, legislative proposals to authorize video lottery terminals (VLTs) in New Hampshire's charitable casinos will have to be approved before adjournment on June 30, with a bill already approved by the Senate struggling to make progress in the House.
Nevada also wraps up its 2025 biennial legislative session later today, June 2.
One gaming reform measure, Senate Bill 46, was signed into law last week by Governor Joe Lombardo, while further bills to tighten prohibitions on illegal gambling and loosen restrictions on gaming salons in casinos are also heading to the governor’s desk.
Another bill moving forward is Assembly Bill 58, which would allow for new slot machines or other casino games to be approved administratively by the chair of the Nevada Gaming Control Board, without further action by the Nevada Gaming Commission. The gaming reform bill was initially passed by the Assembly on May 26 and then by the Senate on Friday (May 30).
