The Movement for Legalized Sports Betting: Picking Up Steam

The tide of public opinion seems to be shifting ever so slowly in favor of eventually legalizing sports betting across the country. Last week, two different groups adopted resolutions urging Congress to consider lifting the federal ban on sports betting and to consider new ways to deal with the preponderance of sports betting in the United States.

On Monday, the US Conference of Mayors adopted a resolution titled “Addressing Illegal Sports Betting Through Regulation.” The resolution calls for legalizing and regulating sports betting after noting among other things that:

• In 2015 alone, Americans placed nearly $149 billion in illegal sports bets
• An estimated $3.2 billion was bet on Super Bowl 50, with 97% of that bet illegally
• Current law is out of step with public attitudes – 65% of fans agree that regulated betting will protect the integrity of the games or have no impact on outcomes
• 80% of Super Bowl viewer want to change current sports betting law
• Illegal sports wagering contributes to the “development” of large criminal enterprises

The resolution ends with two paragraphs that explain exactly what they have in mind:

“The United States Conference of Mayors and the nation’s Mayors, believe it’s time for a new approach to sports betting in the United States that could include strict regulation, rigorous consumer protections, taxation of revenues to benefit local communities, and robust tools and resources for law enforcement to root out illegal sports betting and uphold the integrity of games…

“…the United States Conference of Mayors will work with the American Gaming Association (AGA) to lead a national discussion with other key stakeholders to study the potential benefits of a regulated market, to identify platforms to protect revenues of cities, and to ensure consumer safety, and AGA will designate an official slot for the U.S. Conference of Mayors as part of its national stakeholder advisory committee that will include law enforcement, consumers, and sports leagues.”

Two days later, the Pennsylvania House of Representatives passed House Resolution 619 by a 150-49 vote. The resolution calls on Congress to repeal the federal ban on sports betting in order to allow each state to determine for itself how sports betting should be addressed.

House Resolution 619 lays out the case for allowing states to decide on the issue by noting that:

• The federal government has left the issue of fantasy sports, which blur the lines with regard to sports betting, to states
• The federal government should allow states that offer legal forms of gaming to decide if licensing and regulating sports betting is in the best interest of its residents
• Pennsylvania would benefit financially from lifting the ban as increased revenues and numerous jobs would result from regulated sports betting

The American Gaming Association will be intensifying its federal lobbying efforts to legalize sports betting in 2017. The AGA says it will build on the significant momentum for legalization and hopes to achieve real results within three to five years.

Where Sports Betting Law Stands Today

While other forms of gambling have seen an expansion in numerous states, sports betting has remained frozen in place for nearly 25 years. The majority of states are now home to brick-and-mortar casinos and efforts to legalize online poker and gambling are making progress in multiple states. Sports betting stands alone as the one form of gambling that has seen no expansion whatsoever in recent times.

Sports betting is particularly troublesome due to federal law that restricts the activity to Las Vegas. The Professional and Amateur Sports Protection Act of 1992 (PASPA) was passed to prevent the spread of sports betting in the United States by prohibiting all states from ever legalizing or regulating sports betting. Exemptions to the prohibition were only granted to regions in which sports betting was already legal.

At the time PASPA was passed, sports betting was available in varying forms in four states. Nevada was the most noteworthy state as it offered traditional sports betting and continues to do so today. Oregon, Delaware and Montana also received exemptions for their sports lottery games, but those have little resemblance to true sports betting.

PASPA is the major piece of legislation that stands in the way of legalized sports betting today. To further complicate matters, gambling expansion is almost exclusively a state-by-state issue. There has been little political will to address gambling at the national level, except for the occasional attempt to strengthen anti-gambling measures.

New Jersey serves as a perfect example of the disconnect between states and the federal government. Governor Chris Christie of New Jersey has been fighting to legalize sports betting at brick-and-mortar casinos for years and has even built a strong coalition of support among state lawmakers. The one problem they keep running into is PASPA.

For New Jersey or any other state to successfully legalize sports betting, something must be done at the federal level first. These latest calls for action show momentum is building for action to be taken at the federal level. Legal sports betting advocates have a long fight ahead but calls for legalization and regulation grow more numerous each year.

Related:

• Fantasy Sports Opening The Door For Traditional Sports Betting
• State and Tribal Interests Preparing for Legal Sports Betting