For months, legislators avoided any rash decisions on a potential federal framework for sports gambling, citing an uncertain outcome in the critical midterm elections.

Despite Tuesday's results, some of the key issues raised at a September Congressional hearing on the industry may not be settled for months. A resounding victory by the Democrats in the U.S. House of Representatives could push back any oversight measures on the sports gambling marketplace into the second half of 2019.

There are numerous factors that could lead to a delay. For one, more than 80 new members of Congress were elected to office on Tuesday night. A wave of Democratic leaders will be appointed to chair 104 subcommittees in the House while incipient members become acquainted with their new positions. Before a committee tackles thorny matters such as whether a professional sports league should be compensated for their intellectual property, the 116th Congress must iron out a few kinks.

"There is a lot of brass tax that will have to take place before you move on to substantive issues that are very complex," said Sara Slane, senior vice president of public affairs for the American Gaming Association.

On the state level, however, the landscape appears to be less muddled. Sports betting could be coming to Arkansas in 2019, after voters approved a constitutional amendment by a considerable margin. The amendment, Issue 4, enables Southland Racing Corp. and the Oaklawn Jockey Club to offer sports betting options as part of an expanded gambling menu. More than 54% of voters in Arkansas supported the initiative.

Arkansas governor Asa Hutchinson maintained his stance against the initiative, telling The Arkansas Democrat Gazette that he remained concerned about the impact of gambling on the state budget. It is unclear whether Oaklawn Park will submit an application to begin offering sports betting in time for April's Arkansas Derby.

In Louisiana, voters in 47 of 64 parishes supported a measure to legalize daily fantasy sports. Ahead of Election Day, Rep. Kirk Talbot, a Republican, targeted 50 parishes across the state for approval. The developments provide momentum for a potential Louisiana sports betting bill over the next year.

On a macro level, the results may serve as a harbinger for widespread state-by-state expansion of sports gambling in 2019. As more jurisdictions rush to open sports books, the pressure could mount on surrounding states to enact legislation, Slane noted.

"The popularity in which both of these ballot measures were passed speaks to the fact that consumers want to have the ability to partake in these activities," Slane said. "It's really a positive step in the direction for the industry, and Tuesday’s Election Night results speak to that."

Still, the industry suffered some losses on the evening. Voters in Florida overwhelmingly approved Amendment 3, slamming the brakes on any potential sports betting legislation, at least for the time being. The measure gives voters the exclusive right to authorize casino gambling, effectively shifting any decision on legalizing sports betting to the public. Voters also passed Amendment 13, an initiative that will phase out greyhound racing by January 2021.

Although sports gambling referendums did not appear on the ballot in two Midwestern states, the results of gubernatorial races in Illinois and Ohio could impact the industry in the coming months. In Illinois, governor elect J.B. Pritzker will consider supporting sports betting following his defeat of incumbent Bruce Rauner, the Chicago Tribunereported. Pritzker is searching for ways to generate revenue after inheriting a troubled state pension system with an estimated $130 billion in underfunded liability.

Meanwhile, Republican Mike DeWine defeated Democratic challenger Richard Cordray in a closely-watched governor's race in Ohio. Heading into the election, Cordray was widely viewed as the preferred option by those who support sports gambling. DeWine has consistently opposed sports betting measures while serving as the state's attorney general.

Nearly six weeks have passed since a House Judiciary subcommittee convened for a hearing on the evolving dynamics of the sports gambling market in the wake of a landmark decision from the Supreme Court. At issue is whether federal standards are needed to maintain the integrity of professional sports and adequately protect consumers in the changing environment. During the hearing before the House Subcommittee on Crime, Terrorism, Homeland Security and Investigation, chair James Sensenbrenner asked quizzically why a gambler should place a bet with a legal sports book, when a bevy of tax-free options are available on the underground market. 

A source close to Sensenbrenner, a Wisconsin Republican, indicated that any updates from the subcommittee pertaining to sports betting are not imminent. The bipartisan subcommittee remains largely intact after the majority of its members won re-election on Tuesday.

In the Senate, former Republican presidential nominee Mitt Romney prevailed in his bid to succeed Utah senator Orrin Hatch. As Hatch nears retirement, the longtime senator is working toward crafting draft legislation on federal guidelines for regulating sports betting.

Hatch outlined his concerns during an August speech on the Senate floor.

"As states move to legalize sports wagering, we must seize the opportunity to put in place world-class measures to protect the integrity of our sporting events and the sports betting market," Hatch said.

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