House passes bill to codify Internet gambling prohibition, adds ISP protections

The Utah House passed House Bill 108, a bill that codifies Internet and handheld device gambling under state law, adopts an opt‑out provision should federal law change, and inserts a sponsor‑negotiated amendment intended to shield internet service providers from liability for merely transmitting gambling content.

Sponsor Representative Sandstrom framed the measure as aligning statute with the Utah Constitution’s ban on gambling and as a states’‑rights protection against proposed federal legislation that could legalize online gambling across the country. "The Utah State Constitution specifically outlaws gambling," Sandstrom said during debate, arguing the bill preserves Utah’s prohibition and provides an avenue to opt out should federal law change.

Amendment 6, offered by the sponsor and adopted by the House, was described as language negotiated with internet service providers and hosting companies; Sandstrom said providers appointed a liaison, reviewed the change and signed off on it. The amendment creates a carve‑out so that ordinary ISPs that only transmit or host traffic are not subject to criminal liability for third‑party gambling content.

Members pressed the sponsor on enforcement and fiscal impact. Representative Litback asked how the state would enforce the new provisions given the difficulty of policing online activity in private homes; Sandstrom noted that federal enforcement has targeted payment processors and that enforcement of home gamblers would be difficult. Representative Chavez Houck asked whether the attorney general’s office had the resources to enforce the law; Sandstrom said the AG’s office indicated it could handle enforcement within existing resources and that a separate fiscal note was not required. Several members urged consultation with tribal leaders on potential Indian‑gaming consequences; Sandstrom acknowledged he had not met with tribal leaders and said he opposed expansion of Indian casinos in Utah.

The bill makes it a class A misdemeanor for a person who knowingly transmits, receives, or provides an online gambling service into or within Utah (while creating specific carve‑outs and opt‑out language). The House adopted Amendment 6 and passed HB108 by a recorded vote of 61 yes to 9 no. The bill will be transmitted to the Senate for consideration.

Next steps: HB108 is to be sent to the Senate; members and stakeholders who raised enforcement and tribal concerns may seek follow‑up conversations with the sponsor and the attorney general’s office.