Gaming & Gambling - September 2024 Regulatory Report

September 2024 was active for U.S. gambling legislation, with 39 gambling-related bills progressing in various legislative stages. Despite nine state legislatures being in recess, significant legislative activity occurred in states like California, Massachusetts, Michigan, New Jersey, and Pennsylvania. Notably, California passed several bills before recessing on September 1, while Delaware remains in a special session until the end of 2024. The report below highlights key gambling bills introduced at the federal level, newly enacted state laws, and their expected impact on the gambling industry.

Federal Legislation

1. Ban Gambling on Elections Act of 2024

This proposed federal bill aims to amend the Commodity Exchange Act to prevent any transactions related to political elections or contests from being traded or cleared on registered entities. The act broadens restrictions, prohibiting any election-related data, measures, or contingencies from being part of the gambling ecosystem. This bill is currently under review by the Senate Committee on Agriculture, Nutrition, and Forestry.

2. Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act)

The SAFE Bet Act introduces minimum federal standards for sports betting and public health regulations. Structured into three titles, it aims to standardize state programs, safeguard public health, and uphold tribal and state authority.

Title I – Minimum Federal Standards for Sports Betting
This title establishes criteria for accepting sports wagers, requiring state compliance and setting standards for consumer protection, data security, and enforcement.

Title II – Public Health in Sports Betting
It mandates annual surveys on online sports betting’s societal impact, a national self-exclusion list, and ongoing studies on gambling addiction by the Surgeon General.

Title III – General Provisions
This section outlines the Act’s alignment with the Indian Gaming Regulatory Act and includes a severability clause, ensuring that the rest of the Act remains valid if any portion is invalidated.

Key State Legislation

1. California: Multiple Legislative Updates

In California, several bills were signed into law that impact gambling advertising, employee licensing, charitable gaming, and more:

• AB 2863 – Strengthens California’s consumer protection laws around automatic renewal and subscription services, effective January 2025.
• SB 931 – Updates the process for suspending gambling industry work permits, requiring hearings within 27 days.
• AB 224 – Expands California’s Gaming Policy Advisory Committee, adding academic representatives to enhance oversight.

2. Delaware: Charitable Gaming Reform

Delaware’s HB 389 amends the state’s charitable gaming laws by establishing an annual raffle license and updating reporting and fee requirements. This substitute bill reflects Delaware’s intent to streamline regulatory processes for charitable organizations while increasing oversight.

3. Massachusetts: Adjusted Tax Rates on Fantasy Contests

Massachusetts’s HB 4799 revises excise taxes for sports wagering and fantasy contests, marking a shift in fiscal policy to balance regulatory needs and industry support.

4. New Jersey: Continued Horse Racing Subsidies

New Jersey’s AB 2610 secures annual financial support through 2029 for the state’s horse racing industry, directing funds to thoroughbred and standardbred racing while mandating transparency in fund usage.

Tribal Gaming Developments in California

California enacted several tribal gaming compacts, recognizing the sovereign rights of various tribes to operate gaming activities:

• AB 2656 – Ratifies a compact with the Table Mountain Rancheria tribe to promote economic self-sufficiency, exempting specific actions from environmental scrutiny under the California Environmental Quality Act (CEQA).
• AB 2032 – Ratifies a compact with the Big Sandy Rancheria tribe, similarly supporting tribal autonomy and exempting specific operations from CEQA requirements.

Impact and Outlook

The recent surge in gambling-related legislation reflects the dynamic regulatory landscape of the U.S. gaming industry. Federal bills like the SAFE Bet Act aim to standardize the industry, while state-specific reforms focus on adapting to local needs. The combined efforts of federal and state governments signal a shift towards more regulated and socially responsible gambling environments, with an emphasis on public health and consumer protection.

This report provides a high-level overview of recent legislative advancements, guiding industry stakeholders as they navigate the evolving legal landscape across the U.S.