Sports betting bills have been attempted before in Alaska without any success, but that has not deterred one lawmaker from trying again, as House Bill 145 enters the legislative session.
A Snowball’s Chance
Although bringing mobile sports betting to the masses in Alaska is a long shot at best, Representative David Nelson recently introduced House Bill 145, which is currently under consideration at the House Labor & Commerce and Finance committees.
Alaska is just one of five states that does not operate a state lottery, with the others being Alabama, Utah, Hawaii, and Nevada. The Silver State prohibits a lottery to reduce competition for the state’s many casinos that make Nevada’s economy flourish, while the others, like Alaska, have been reluctant based on societal norms and fears of addiction.
Previous Legalization Attempts
Previous attempts to legalize sports betting in The Last Frontier have been unsuccessful, like the one in 2020 by Republican Governor Mike Dunleavy that was part of a larger state lottery bill. Dunleavy attempted to rally support, saying:
“In the face of low state revenues, my administration has been actively seeking new revenue sources to diversify our economy. Not only does this legislation have the potential of creating new business opportunities, the profits generated from lottery activities will be designated to K-12 education, domestic violence prevention programs, drug abuse prevention programs, foster care, and homelessness.”
Anatomy of Alaska’s Sports Betting Bill
Whether this current bill gains support from either committee is uncertain, but the climate might be a bit more welcoming this session than ever before as sports betting has become mainstream throughout the United States.
For example, another anti-gambling stronghold, Hawaii, is also considering sports betting legislation after the most recent bill was approved by the House and has passed muster in two Senate committees.
Unlikely Path to Approval
Nevertheless, it is unlikely that Nelson’s bill will find its way to the governor’s desk this year, but should it advance further than other bills preceding it, that could be a promising signal for future sports betting legislation.
Considering there are no Class III casinos offering slots and table games operating in Alaska, Nelson’s bill would be exclusively focused on mobile sports betting. Should Alaska expand its gaming footprint to permit fully licensed casinos, the discussion of retail sports betting housed within those casinos could be a topic for future discussion.
Key Provisions
House Bill 145 would charge mobile sportsbooks $100,000 per year to maintain their license and levy a 20% tax on adjusted gross revenues. The bill prohibits anyone under the age of 21 from wagering and would limit the number of licensees to 10, with a minimum of three required to launch sports betting under the authority of the Alaska Department of Revenue.
The bill would permit single-game betting, parlays, teasers, live betting, proposition bets, and futures. Only those mobile sports betting platforms currently active in at least three other states would be given priority as licensees. The bill also allows for multi-state compacts, much like online poker agreements between cooperating states.
