Alaska May Try to Power Through Push for Legalized Sports Betting

Alaska is down but not under yet, with the state trying to push a bill that seeks to legalize up to 10 online sportsbooks locally. Whether the bill succeeds will be a matter of razor-thin majority that sees it through.

Alaska’s Hopes for Passing Sports Betting This Year Get a Cold Shoulder

Originally introduced in March by Rep. David Nelson, House Bill 145 has until the end of business today to either make it or be consigned to history and possibly resurrected during the 2026 legislative session.

Yet, House Bill 145 offers a glimpse into how the state could raise extra revenue by regulating an activity that is already taking place. The bill proposes a $100,000 licensing fee, which is on the low-end and a 20% tax on sports betting revenue.

The tax revenue is well-aligned with other states and could raise a fair bit of money for The Last Frontier. Gov. Mike Dunleavy has already hinted that the introduction of sports gambling, with an appropriate tax, could help ease some of the budgetary pain that Alaska faces.

The state faces about $1.5 billion in deficit, which it needs to start tackling soon. While no feasibility study has been done, it is possible that Alaska could bring anything between $15 million and $40 million in tax revenue a year should the activity become legal.  However, there is some hard data to build around.

According to GeoComply senior advisor John Pappas, between January 1 and May 1, there have been 126,933 geolocation checks attempting to access legal sportsbooks in other states coming from Alaska – a marked increase of 60% compared to the previous period. s

These are the numbers targeting sportsbooks that GeoComply is working to provide geofencing for – the offshore sector, though, commands a much bigger slice.  

Unregulated and Illegal Gambling Will Continue Happening  

Nelson is also pitching his bill on the same lines, cautioning that there is already widespread illegal gambling that needs to be stemmed in order for the state to make the most out of its economic potential.

“The illegal and unregulated market continues to grow in states without legal alternatives. These black markets are predatory and offer no oversight or consumer protections and generate no revenue for the state,”  Nelson explained.

With this data available, lawmakers in favor of sportsbooks would need to convince their more skeptical counterparts.