Committee advances online sports betting ballot question (HR450) and implementing bill (HB686) with higher tax rate

The House Higher Education Committee voted to advance HR450, a proposed ballot amendment to authorize online sports betting, and HB686, the implementing legislation that would levy and allocate tax revenue if voters approve the amendment.

Representative Reeves (speaker 10) told the committee HR450 contains no changes from prior versions and that HB686 increases the proposed tax rate from 24% to 27.5% (specific reference to line 602 of the bill). He said clerical updates to other code references appear on lines 37–50 of the implementing bill. "The money would go to HOPE and pre‑K just like last year," Reeves said.

Representative Bernal raised concerns about who would benefit, asking whether people who spend heavily on sports betting (and whose families have historically been excluded from HOPE) would see benefits. Reeves replied that HB1413 and other scholarship provisions aim to fund graduate medical education and other education priorities and cited an estimated revenue figure for the state if the amendment is approved.

In response to questions about possible uses such as fully funding school meals or early childhood programs for ages 0–3, the sponsor and the chair said the ballot language places revenues into the existing lottery pool and that the state constitution sets the permissible uses (a five‑category list including pre‑K). Several members discussed whether particular priorities, such as HBCU capital needs, could be addressed through budgeting but emphasized that the constitutional structure of lottery funds remains controlling.

The committee moved HR450 and HB686 forward with do‑pass recommendations after voice votes and a requested hand count on at least one item.