Legalized Alaska Online Sports Betting In Demand

• The Alaska House Labor and Commerce Committee held a hearing on an online sports betting bill
• Rep. David Nelson’s (R-18) HB 145 will legalize online sports betting in the Final Frontier
• Thousands of Alaskans currently attempting to access online sports betting, according to geolocation company

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Thousands of Alaskans are attempting to access legal online sports betting apps, according to a geolocation company representative, and when blocked turn to the illegal markets to bet on sports.

Rep. David Nelson (R-13) is attempting to bring the Final Frontier into the legalized online sports betting world, as his bill, HB 145, received its first hearing with the Alaska House Labor and Commerce Committee.

“Alaska needs more diverse sources of revenue, and this is one of them. Legalized sports betting is a simple solution for a market that already exists in the state,” Nelson said.

Illegal Alaska Sports Betting

Nelson’s bill will allow for up to 10 online sports betting operators to do business in Alaska. Alaska online sports betting operators would not be tethered to any brick-and-mortar gaming elements.

It was the bill’s first committee hearing since being introduced in late March. No votes were taken.

If more than 10 applicants are interested in acquiring a license, the Department of Revenue will award them based on projected gross revenues, relevant experience in other states, and projected tax revenues.

Thousands of Alaskans are currently betting through illegal sports betting operators, Nelson said. By bringing the state into the legalized market, Alaska will be able to benefit from new tax revenues and help support residents who may bet irresponsibly.

“This would not only apply to residents, but also anyone physically betting in the state, including tourists and seasonal workers. We won’t lose out on revenue from people who are only working in the state temporarily,” he said.

The bill seeks experienced operators to launch Alaska’s sports betting markets. The only operators allowed to apply for a license are those who currently offer online sports betting in at least three other states.

License fees for operators would be set at $100,000, with operators subjected to a 20% tax rate on adjusted gross sports betting revenue.

Other bill details:

• Sets the minimum sports betting age at 21
• Allows betting on college sports
• Allows betting on the Olympics
• Does not regulate daily fantasy sports
• Allows user accounts to be funded through credit cards

Thousands Currently Trying to Bet

John Pappas, senior advisor to GeoComply, a geolocation service for gaming companies, testified to the committee that Alaskans have made hundreds of thousands attempts to access legalized sportsbooks in others states.

From Jan. 1, 2024, through May 1, 2025, GeoComply registered 126,933 geolocation checks within Alaska of residents attempted to access legal sportsbooks in other states. All efforts to do so were blocked by GeoComply.

Additionally, GeoComply identified 23,000 unique online sports betting accounts in the state.

“This is a 60% increase in registered accounts over the prior year, clearly demonstration a substantial consumer demand,” Pappas said.