Representative David Nelson told the House Labor and Commerce Committee that House Bill 145 would legalize and regulate mobile sports wagering in Alaska to move wagering out of the illegal market, provide consumer protections and generate tax revenue.

“These illegal operators are predatory in nature, offering no consumer protections, age verification, tools to address addiction issues … giving consumers zero recourse,” Representative David Nelson said, arguing the legal market would require verification, problem‑gaming safeguards and standards for licensees.

Matt Scalf, government affairs manager for DraftKings, testified in support and said sports wagering is already occurring in Alaska’s illegal market; DraftKings emphasized consumer protections such as identity verification, geolocation checks, deposit limits and self‑exclusion tools. “Sports wagering is already taking place in Alaska,” Scalf told the committee, and a regulated market could provide oversight and tax revenue.

John Pappas of GeoComply, a geolocation and anti‑fraud provider, presented usage data showing thousands of geolocation checks from devices in Alaska attempting to access out‑of‑state sportsbooks and reported a roughly 60% year‑over‑year increase in unique mobile betting accounts in the state during the period cited. Pappas said geolocation solutions can be tailored to Alaska’s maritime and coastal geography to ensure wagers originate from permissible locations.

Kevin Winters, representing a harm‑prevention provider, supported regulation but urged that the bill be expanded to dedicate funding for research, prevention, treatment and aftercare for gambling-related harm. Winters noted Alaska is among a small number of states that do not currently allocate public funds for problem‑gambling services.

Representative Nelson’s draft would require operators applying for Alaska licenses to maintain licensure in at least three other jurisdictions, a threshold the sponsor said would help ensure standards. Industry witnesses estimated legalizing wagering would generate new tax revenue and provide consumer protections that illegal operators do not.

The committee took testimony but did not vote on HB 145 during the hearing; sponsors and witnesses said they are available for follow‑up as lawmakers refine licensing, taxation and responsible‑gaming provisions.