Joe Lieber

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(o) 202-964-7473

(c) 202-215-1896

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(DKNG, FLUT, CZR, MGM) Sports Betting Policy Update

By Joe Lieber Published on January 15, 2025 PDF

We see little positive legislative movement for the sports gambling sector [DKNG, FLUT, CZR, MGM], since we do not expect any of the 11 states that have yet to legalize the practice to make further progress this year. This is especially true in the two largest states in the country—California and Texas. In fact, from a policy standpoint on both the state and federal front, we are more likely to see headline risks rather than tailwinds.

On the federal level, we see very little chance that any materially negative legislation or regulation is enacted for at least the next two years, but we are likely to see the (re)introduction of measures, such as last year’s bill the SAFE Bet Act from Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT), which would create nationwide consumer protections for the sports gaming industry.

Headline risks are likely from state legislatures as well. Last year, there were threats of tax hikes on the industry from New Jersey and an actual tax increase in Illinois. We could also see more states banning prop bets on individual collegiate players.

States that Haven’t Legalized Sports Betting

To date, 39 states have legalized some form of sports betting, but we think it will be an uphill battle to see any of the additional 11 states follow suit in 2025. (see table on next page)

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