While Cinderella runs for sports betting legislation in Oklahoma and Hawaii fell short, another long shot is alive in Alaska.
The House Labor and Commerce Committee held a hearing late last week for Rep. David Nelson’s House Bill 145, which would legalize Alaska sports betting.
The committee did not vote on the legislation. Alaska’s legislative session runs until Wednesday, so passage seems unlikely this year; however, bills carry over into the 2026 session.
Alaska sports betting details
Nelson introduced the bill in March. His legislation would legalize up to 10 online sportsbook operators in Alaska.
If more than 10 applicants apply, the Department of Revenue would award licenses based on projected revenue based on other states.
Nelson’s proposal sets the license fee at $100,000 and a 20% tax on sports betting revenue. Gov. Mike Dunleavy has suggested sports betting as a way to increase revenues in the past.
Illegal market prevalent
Like many other legislative proposals, Nelson is championing sports betting legalization to help stamp out the illegal market: “There are potentially millions of dollars being illegally wagered in Alaska each year,” he said.
“The illegal and unregulated market continues to grow in states without legal alternatives,” Nelson wrote in a sponsor statement for the bill. “These black markets are predatory and offer no oversight or consumer protections and generate no revenue for the state.
“Alaska needs more diverse sources of revenue. Legalizing sports wagering is a simple solution that would capture a market which already exists in the state.”
Alaskan sports betting attempts
GeoComply Senior Adviser John Pappas testified during the committee hearing.
Pappas noted that from January 1 to May 1, the company clocked 126,933 geolocation checks of accounts attempting to access legal sportsbooks in other states. Those checks came from 23,000 online accounts.
That was a 60% increase year-over-year.
Cinderella stories fall short
Entering the year, both Hawaii and Oklahoma looked like long shots for sports betting legalization, but both fell just short of legalization.
Hawaii legislation passed both the House and Senate before falling short in a conference committee.
In Oklahoma, House bills passed a Senate committee, the furthest sports betting legislation made it in the upper chamber, as time ran out in the session before a full Senate vote.
