The Market
Capitol Hill, the states and paths into legalization
The mainstream acceptance of sports gambling is peaking. Cash-strapped states are starting to observe sports betting a potential source of revenue over a detriment to society. The point spread and betting action in Las Vegas have become popular storylines for each and every big game, and for the very first time, a commissioner of a major professional sports team has come out in support of legalizing sports betting. There simply has never been this much momentum to legalize sports betting outside of Nevada.
But momentum and authoritative results are two quite different things. As of now, state-sponsored gaming is illegal outside of a couple of states, with single-game wagering allowed only in Nevada.
Some from the U.S. government feel it is time for a change and the current federal gaming laws –most notably the Professional and Amateur Sports Protection Act of 1992 (PASPA), Wire Act of 1961 and the Unlawful Internet Gambling Enforcement Act of 2006 — aren’t appropriate anymore and need upgrading.
«The laws need a wholesale review to learn how they could actually work together and create a fairer playing field for all kinds of gaming, both online and offline, including sports betting and daily fantasy sports,» U.S. Rep. Frank Pallone Jr., of New Jersey told ESPN. «At precisely the same time, we have to make sure the laws are actually creating a feeling of integrity and responsibility, and include strong consumer protections.
«I intend to continue talks with all the key stakeholders then will introduce comprehensive legislation to eventually update these laws that are obsolete.» Additionally, lobbying efforts directed by the American Gaming Association are set to begin in 2017. «The next [U.S.] president will have that issue of sports gambling in their desk,» AGA CEO and president Geoff Freeman has said.
But most of the sports leagues aren’t on board, nevertheless. They’re, nevertheless, strategically positioning themselves for widespread legal sports wagering. The NCAA and NFL stay compared to legalization. The NHL and Major League Baseball, while demonstrating signs of a softening stance, have stopped short of coming out in full support. Even the NBA, undoubtedly the most outspoken proponent of legalization among the sport leagues, has repeatedly said it is not ready to bring about lead lobbying efforts.
«We have been supportive of sports gambling, and we are going to continue to be supportive,» NBA senior vice president and assistant general counsel Dan Spillane informed ESPN. «If somebody in Congress were to ask our view on a bill that’s proposed, then I’m sure we’d be delighted to participate and weigh in.» The leagues have financial stakes in daily fantasy sports websites and a sudden interest in Las Vegas, and also have struck deals with information companies that fuel the international sports betting market.
The NFL, NBA and NHL have deals with Sportradar, a Switzerland-based conglomerate that’s the parent company of Betradar, a major player in the global sports betting industry, and Major League Baseball has partnered with Pro Sports, a multi national gaming data company situated in London. Even the NCAA has a commercial affiliation with Sportradar, together with the Pac-12 conference using the services of CG Analytics, a subsidiary of a prominent Nevada sportsbook.
These partnerships represent a deep change in the leagues’ position on line monitoring, the job of tracking gambling data in an effort to identify unusual moves or supernatural money. As lately as 2007, representatives of the NBA, NCAA, NHL, MLB, and NFL sent a letter to Congress dismissing the value online monitoring.
Additionally, game integrity issues — often cited as a reason to oppose controlled sports betting — are now increasingly being used as a motive to encourage legalized sports wagering, given the ability to monitor statistical data.
While the leagues’ stances are changing gradually, pros say sports gambling of the legal variety is still years away from coming at your regional casino or on your cell phone.
«My heart says it should be one to three [years],» former NBA commissioner David Stern told ESPN in September. «My head says it’s between five and 10.»
Individual states may not wait that long.
New Jersey has invested millions of dollars in legal fees while combating the sport leagues and hard PASPA (the federal prohibition on state-sponsored sports betting) in its continuing case that began back in 2012. In October, New Jersey filed its second appeal to the U.S. Supreme Court on this issue.
This summer, Pennsylvania passed a resolution urging Congress to»raise the Federal ban online sports betting and also to allow states that authorize, permit and regulate casino gambling, including the Commonwealth of Pennsylvania, to legalize sports gambling through its licensed facilities.» And New York Assemblyman J. Gary Pretlow is currently planning a 2017 legal challenge to PASPA.