Washington Sports gambling bill sent for Senate vote

In spite of concerns about a controversial emergency clause attached to it, proposed legislation on sports betting in Washington’s tribal casinos has been forwarded to a full Senate vote by week’s end.

Calls to scrap the emergency clause, which blocks EHB-2638 from being subjected to a state-wide referendum requiring 60% vote to pass, were rejected by a Senate Ways & Means Committee on Monday. The committee, instead, voted the bill forward despite protests that say it provides an untaxed monopoly to the state’s Native American tribes while damaging smaller commercial card-room casinos.

The upcoming Senate vote is the final major step before forwarding the legislation to Gov. Jay Inslee, after the bill was approved by the House last month.

Shortly before the bill was voted through, committee Chair Karen Keiser, D-Des Moines, said, “This is the wise and cautious approach to take.”

Nevada-based Maverick Gaming, which acquired 19 of the state’s 44 commercial card-room casinos in the last year, and others opposing the bill argue their venues should also have access to the lucrative sports gambling market. However, Keiser maintained that authorising such gaming beyond tribal casinos “would open us up to trouble” through a potential widespread proliferation of it.

On Monday, Committee members amended EHB-2638 to exclude minor league sports from the gambling it authorises. This means the bill technically must be reapproved by the House after the Senate passes it — but that’s considered a formality given the crushing 83-14 vote last month.

Eric Persson, Maverick Gaming CEO, contended in public hearings held by the committee last Friday that the state is losing up to $50 million in yearly state tax revenue by not authorising sports betting beyond tribal venues. He added the only reason the emergency clause was invoked was because legislators know Washingtonians would never approve the bill in its current form.

Persson has vowed to block the bill from becoming law and will spend up to $30 million this election cycle on litigation, campaigning, television advertisements, for the purpose.

Senators debated an amendment to remove the emergency clause on Monday, but it was defeated 14-10. Those favouring the clause say the illicit sports gaming Washingtonians are participating in constitutes an “emergency” and allowing such gambling in limited form within tribal casinos could possibly protect them from black-market abuses.

Others claim the fact the state won’t gain tax revenue from tribal sports betting means there’s no pending fiscal urgency to invoke the emergency clause, suggesting the emergency designation has no basis.

Senator John Braun, R-Centralia, who proposed the amendment to remove the clause, told the committee its usage constitutes “a created crisis” that is “just about power politics” to rush the legislation through without a public vote.