Washington State readies for rule-making process regarding sports betting legislation
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Washington State's Gambling Commission Moves Forward with Sports Betting Proposals
The Washington State Gambling Commission has set the stage for the upcoming legal sports betting, voting 3-0 to commence the rule-making process and request the state legislature to either forgive or extend the repayment of a $6 million loan associated with the new sports betting law.
Nevertheless, these decisions won't prompt immediate action on sports betting. The gambling commission team is just prepping for when the first tribal compact, which includes sports betting, is finalized. This isn't expected to take place for several more months, at which point the gambling commission will delve into the rule-making process in earnest.
Washington lawmakers legalized tribal-only sports betting within brick-and-mortar sportsbooks back in March, but unlike some states, their bill doesn't feature rigid deadlines, such as the one Colorado had for getting its sports betting system up and running by May 1, 2020.
Establishing the Compact First, Rules Second
While the WSGC has been readying itself for sports betting, Washington and its tribes must first complete the compacting process to include sports betting as an authorized activity. WSGC Legal and Legislative Manager Brian Considine stated this during the virtual meeting. He noted that they'll only roll out proposed rules and initiate the licensing process when they're in a reasonable position in compact negotiations.
The gambling board is currently in negotiations with four tribes, and they'll negotiate with each individually, reach an agreement, and secure approval from the state legislature, the governor, and the U.S. Dept. of the Interior.
Rules would cover licensing, integrity, and other important aspects, but Considine couldn't provide specifics on when the proposed rules would be introduced.
Different states have adopted various approaches to tackle licensing and regulations, with some states, like Colorado, Indiana, and Pennsylvania, taking the first step with licensing to identify potential entrants and then move on to regulations.
Virginia Lottery recently rolled out proposed regulations covering licensing, consumer protections, voluntary self-exclusion, and a sports bettors' bill of rights.
The $6 Million Dilemma
A second key sports betting issue on the agenda concerned the $6 million loan granted to the WSGC by the state legislature in March. The loan was included as an emergency provision in the law and was intended to aid the commission in suppressing illegal sports betting.
However, sports betting became law before the coronavirus became a major issue in the U.S., leading to professional sports halting, and stay-at-home orders or restrictions being implemented. The loan was meant to be repaid using funds from sports betting activities like licensing fees. But, as with many other government agencies, the gambling board is now facing a financial shortage.
Gambling Commission CFO Chris Stanley presented a plan to request an extension for repaying the loan until 2022 or request complete forgiveness. Ex-officio board member Sen. Steve Conway strongly recommended asking for an even longer extension – to 2023 or 2024 – rather than returning to the legislature multiple times. Ultimately, the board agreed that forgiveness would be their goal, but if unattainable, they would seek an extension.
The board deferred several other capital projects, including the replacement of their IT system, to prioritize managing the sports betting loan.
- Brian Considine, the WSGC's Legal and Legislative Manager, suggested that they'll only propose rules and initiate the licensing process once they are in a reasonable position in compact negotiations, stating, "The first step is to get this clarified in compact negotiations. If the agreement is to issue licenses and write regulations, then we'll be ready."
- In the rule-making process, regulations would cover licensing, integrity, and other essential aspects regarding sports betting, although Considine couldn't specify when the proposed rules would be introduced.
- The state of Virginia has already rolled out proposed regulations for sports betting, encompassing licensing, consumer protections, voluntary self-exclusion, and a sports bettors' bill of rights to ensure a safe and secure environment for sports-betting enthusiasts.
- Ex-officio board member Sen. Steve Conway expressed his preference for extending the loan repayment deadline until 2023 or 2024, rather than returning to the legislature multiple times, adding, "I don't want to give up on the idea of additional enforcement."
- To focus on managing the sports betting loan, the gambling board has deferred other capital projects, such as the replacement of their IT system, with the intention of seeking forgiveness for the $6 million loan or, if unattainable, extending the repayment deadline.
