Betting KnowledgeFeaturedGambling GuidesOpinion FeaturesSports Betting KnowledgeState Laws & Legislation
Overview: Online Sports Betting In Montana
February 10, 2021
/
0
Montana sports betting is confined to its bars and taverns. Montana’s population is small for its size, and it won’t steal bettors from surrounding states when Nevada is nearby. Bars and taverns benefit the most from sports betting legalization. Those businesses can get their patrons to stay a little longer and spend a little more by offering sports betting. Montana’s lottery-run mobile app is also confined to businesses that put sportsbook kiosks in their places of business.
However, Montana almost had a private-run sports betting model. The original plan was to create two dueling sports betting systems. One is the lottery-run system that Montana has now. But the other was a private-run sports betting industry vetoed by Governor Steve Bullock.
These bills had different tax rates, too. Representative Lynch’s House bill is the one that passed. It allowed the Lottery to direct any sportsbook winnings to the state’s general fund. Part of those winnings would also fund STEM scholarships. The Lottery would contract out the operation of the sportsbook, but the Lottery’s sportsbook would be the only one allowed in Montana’s bars.
Representative Blasdel’s Senate bill had a different vision. It would’ve taxed sports betting revenue at 8.5%. Montana’s Department of Justice would’ve issued licenses and overseen the industry like Gaming Commissions in other states. It would’ve looked like other sports betting industries around the countries.
Both bills made it to the Governor’s desk. Both bills would’ve kept sports betting confined to bars and taverns. So, why did the House bill succeed where the Senate bill failed?
Although the lottery-run system doesn’t seem favorable, individual circumstances can make it a reasonable choice for certain states. The revenue difference doesn’t matter to Montana, because it doesn’t have the environment for a large sports betting industry, anyway. It would matter more if Montana was surrounded by competitive sports betting industries.
Montana’s Dueling Sports Betting Proposals
Sports betting in Montana began with two sports betting bills:| House Bill 725 | Ryan Lynch (D) | Let the Montana Lottery offer sports betting |
| Senate Bill 330 | Mark Blasdel (R) | Let the Montana Department of Justice license private sportsbooks |
No, The Democratic Governor Didn’t Embrace Socialism
Don’t send this article around trying to prove Montana is run by a socialist cabal. The two tiebreakers didn’t have anything to do with creating a planned economy. Governor Bullock’s reasons for selecting the House bill and vetoing the Senate bill were:- Room for one proposal
- Additional funding for STEM scholarships
| Lottery-Run | Private-Run |
| One Government-run Sportsbook Brand | Multiple Private Sportsbook Brands |
| Higher tax rate | Lower tax rate |
| Lower total revenue | Higher total revenue |
| Worse odds | Better odds |
Private Sportsbooks Could Come To Montana
Adopting the Lottery model doesn’t mean that Montana is forbidden from adopting the private model later. The Governor said that Montana could reconsider it in two years. However, Montana’s sports betting industry already began opening up at the end of 2020. A Montana judge ruled that the Montana Lottery couldn’t limit sportsbooks to businesses with liquor licenses. Since the Legislature didn’t make that rule, the Lottery couldn’t either. That seems to run counter to the bill directing the Lottery to set industry policy. So, expect appeals. Judicial opinions aside, we also have the benefit of hindsight. Private-run sportsbook industries tend to markedly outperform lottery-run industries. The competition between private companies generally leads to:- Better odds
- Attractive sportsbook bonuses
- A hunting bill that threatens tribal sovereignty.
- Four abortion bills.
- A healthcare bill addressing the cost of care.
