Montana is at the head of a wave of states passing legislation this year to allow gambling on sports, and it is the seventh state to legalize the practice since the U.S. Supreme Court allowed it nationwide last year.
Tennessee's governor will allow a bill in that state to become law without his signature. Bills passed by lawmakers in Iowa and Indiana are awaiting action by the governors.
The Montana law became effective immediately, and supporters expect to move quickly to get the system operating. The bill's sponsor, Democratic Rep. Ryan Lynch, said the goal is to have it running by the start of football season in September.
"It's a good day for Montana to be able to see sports betting in the marketplace,'' Lynch said. "I think Montanans will enjoy the new aspect of watching sports for entertainment as well as betting on it.''
The bill allows licensed bars and restaurants to have kiosks and mobile applications that can be used inside those establishments. The Montana Tavern Association lobbied heavily for legalization, and the measure effectively gives the association's members a monopoly.
Lottery officials estimate that people will wager more than US$65 million in the first year, which would mean about US$3.7 million in revenue to the state after an expected 80% payout and expenses.
Both wagers and revenue are expected to rise to US$87 million in bets and US$5.4 million in revenue by 2023, according to estimates. The profits will be mixed with other lottery revenue and will go to the state treasury and to a scholarship fund.
Lawmakers sent Bullock two bills that would have created competing sports betting systems. One was the lottery bill, and the other would have allowed private businesses to run sportsbooks, kiosks and mobile apps that would be regulated by the state Department of Justice.
Bullock vetoed the second bill. He said in his veto letter that the lottery has existing infrastructure and is heavily regulated, which ensures a transparent environment. The private business model, on the other hand, might favor companies with the most money and create a fragmented market that generates a lot less money for the taxpayers, he said. The private model can be revisited after the new system is tested, he said.
"A new market like this cannot support sports wagering under both systems at once,'' Bullock wrote. "For the market to succeed, Montana needs to enter the sports wagering market conservatively.''
Source: GMB / ESPN
