Following recent trends of states progressing sports betting, such as Nebraska , Alaska also officially took steps to legalize mobile sports betting by introducing House Bill 145 (HB 145), which State Representative Jesse Nelson sponsored.
The bill establishes a regulated industry for online sports betting in the state. Depending on issuing at least three operator licenses, the proposal's effective date would be Jan. 1, 2026.
In HB 145, the Alaska Department of Revenue would issue licenses, oversee operations, and enforce compliance. The licensing process would involve any applicant providing mobile sports betting services in the state to qualify for a license, with priority restricted to current operators with at least three other online sports betting licenses in U.S. states. Applicants would also be subjected to criminal history background checks.
Every license carries a yearly fee of $100,000, with other processing fees. The bill caps the number of permits at 10, trying to have a competitive but controlled market. On taxation, the bill aims for a 20% tax rate on adjusted gross revenue from mobile sports wagering operations.
The bill significantly features operational requirements and consumer protection measures. Licensees would be need to implement identity verification procedures, ensure system integrity, store data, and report suspicious betting patterns.
Sports betting meets with challenge in Alaska
One of the bill's notable features is its explicit exclusion of licensees from local municipal wagering taxes, focusing on state level regulation and taxation. The proposal also makes enforcement provisions, with violations penalized by civil fines of up to $10,000 and potential license suspension or revocation for severe offenses.
To implement the new law, the Department of Revenue shall develop detailed regulations modeled after practices used in other U.S. states. The rules must include provisions for consumer protection, cybersecurity, financial reporting, and licensing procedures.
HB 145's types of accepted wagers are sweeping in nature and cover single-game betting, parlays, teasers, live betting or in-play, proposition wagers, and futures, among others. Any bet has to be made by persons physically in Alaska or outside but within any other place where the formal agreement to undertake cross-jurisdiction betting with Alaska exists.
HB 145 is not Alaska's first go at sports betting legislation, but is its most narrow and specific effort so far. Prior efforts, like a 2020 bill former Gov. Mike Dunleavy presented, were to legalize sports betting by instituting a state lottery. However, lawmakers denied the motion.
In 2022, the state saw HB 385, a bill to legalize online sports betting, but it only went into early discussions.
HB 145 now attempts to attract proven and reputable operators to ensure market stability and comply with regulation. Including interstate wagering compacts within the bill could further attract national operators and contribute to potential tax revenue for Alaska, which doesn't currently have a state lottery or commercial gaming infrastructure.
