G2E Highlights Industry

Sports Betting Faces Changes and Challenges in Wagering Landscape

By Amelia Walker Senior Content Writer Updated: 23 October 2023

Amelia Walker Senior Content Writer

Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.

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The recent annual G2E gaming conference in Las Vegas saw sports betting regulators from states including New Jersey, Massachusetts, Tennessee, and Michigan tackle a range of challenges being experienced within the sports betting industry. Industry officials who were present at the conference discussed various details about how the industry’s regulation has been transforming.

G2E is regarded as the premier annual gaming conference in the United States, and during this year’s event, regulators spoke on multiple panel discussions. As part of the discussions, industry officials addressed several packed rooms of industry stakeholders.

One of the highlights of the conference was the emphasis on how swiftly the landscape of sports betting regulation has changed in the past few years.

For regulators, the landscape is seen as almost unrecognizable compared to just a few years ago. The constant changes in the sports betting market have resulted in continued demand for adaptability from both regulators and sports betting operators.

Reshaping the Sports Betting Market

State legislators have tried to maximize revenues and ensure fairness in the sports betting market. As such, they have been proactive in reshaping the industry to achieve these goals. Ohio was highlighted as an example of this trend after the state doubled its tax rate for the retail and mobile sports betting market within its first year.

During the event, Tennessee’s tax restructuring also gained attention. The state moved from a mandatory hold percentage method to a tax being placed on an operator’s monthly handle.

Stephanie Maxwell, the General Counsel for Tennessee’s Sports Wagering Council, championed this change during the “U.S. Regulation: Is the Second Wave Cresting?” panel. She said:

Tennessee has set a precedent, introducing a straight handle tax at 1.85 percent. From a regulatory standpoint, this is a streamlined approach and easier to execute.

Her enthusiasm was not shared by everyone, based on discussion among panel members. Some operators appeared to be apprehensive about these rapid legislative modifications. For many operators, traditional revenue-based taxation is preferable.

BetMGM Representative Against Handle Tax

Rhea Loney, BetMGM’s Chief Compliance Officer, spoke about her reservations, stating that a handle tax was not beneficial from her point of view. She added that a mandatory hold of 10 percent ‘isn’t palatable either.’

Ohio’s sudden tax hike also ruffled feathers among operators, suggesting potential strains in the state’s sports wagering sector. Legislative changes such as these can put regulators in a very difficult position, as they are often caught between adapting to new legislative rules and keeping operators happy. In most cases, regulators have been willing to collaborate with operators to strike a balance.

An example highlighted was the anticipated modification by Tennessee’s Sports Wagering Council of a regulation that previously barred athletes from starring in sports wagering commercials broadcast in the state.

The move was seen as an issue for operators spearheading national ad campaigns. However, Maxwell hinted at a likely relaxation of this stringent rule in the coming months, although this will be based on operators sharing the ad campaign details with the council beforehand.