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Proposal to cap online 'free play' at 5% draws heavy questioning; amendment fails
Summary
Sen. Bart Hester proposed limiting online sports‑betting 'free play' promotions to 5% of gross receipts to curb alleged predatory marketing; committee members raised accounting and jurisdictional concerns and the amendment failed.
Sen. Bart Hester introduced special language to cap online sports‑betting promotional "free play" at 5% of an operator’s gross receipts, describing the practice as a subsidy that can allow operators to report minimal profits while heavily promoting gambling. Hester framed the proposal as consumer‑protection oriented and said it would stop what he described as predatory offers aimed at students and other vulnerable groups.
Several senators questioned the accounting logic behind the claim that promotional credits are reported as zero income, asked whether such matters belong in an appropriation bill, and suggested a resolution or separate bill might be a more appropriate vehicle for regulatory changes. One senator compared promotional credits to ordinary commercial rebates, noting taxable events often occur when value is realized by consumers. The committee debated but did not resolve the tax/accounting mechanics.
After discussion and motions, the amendment failed on a voice vote. The transcript records extensive back‑and‑forth on whether the committee should address the social concerns now or pursue a separate policy process to resolve technical tax and reporting questions.
