By ALAN SNEL
LVSportsBiz.com
First booze. Then pot. Now sports gambling.
America said it was OK to place bets on sports across the country when the Supreme Court ruled 7-2 that states banning sports betting outside Nevada was unconstitutional.
It now opens the door to states to expand sports gambling as a vehicle to generate public revenue, while allowing previous behind-closed-doors betting to come into the sunshine. It was estimated that billions of dollars were previously spent on illegal sports gambling on events ranging from the Super Bowl to college’s basketball’s March Madness. Now, states that adopt enabling legislation can legalize those bets, regulate the sports gambling industry and make money off the betting in their states.
New Jersey Gov. Chris Christie scored big with the SCOTUS ruling after he and his state took on the 1992 Professional and Amateur Sport Protection Act. Legalized, regulated wagering is now OK — but you can’t set up your own unregulated book or personal sports gambling parlor in your basement.
Much money is at stake. With total sports betting hitting nearly $4.9 billion in Nevada in 2017, the state enjoyed sports wagering revenues of $248.8 million last year, a record. And Nevada has generated more than $200 million in revenues annually since 2013.
There are tens of billions of dollars in illegal sports betting in the U.S., with the estimate as high as $150 billion in 2017.
Nevadans differ on what they believe will be the ruling’s implications.
Jennifer Roberts, assistant director of UNLV International Center for Gaming Regulation, was reached in Macau and had this to say.
“This is a very thoughtful decision that addresses PASPA in its entirety, so we don’t have to worry about bifurcation of the provisions. We now see clearly that sports betting, as a form of gambling, is a matter for the states to regulate under the U.S. Constitution. States must now take a smart approach to the taxation and regulation of a new activity,” she wrote in an email to LVSportsBiz.com.
“And Nevada serves as a great model because it has successfully done so for decades,” Roberts said.
And MGM Resorts International issued this statement: “MGM Resorts International applauds the Court’s decision to allow states the opportunity to protect consumers and benefit the public by regulating and taxing sports betting.
“We look forward to working with legislators and policy makers to achieve a regulatory outcome that benefits states and consumers alike while ensuring the integrity of sports.
“Having spent decades building trust with regulators, successfully operating sports books in Nevada, and hosting the world’s leading sporting events, MGM Resorts International is extremely well positioned for a post-PASPA environment.”
Some believe Nevada will lose its edge over other states when it comes to sports gambling now that bets can be legally placed across the country.
Others believe otherwise. A good argument in this camp was presented by AP sports writer Willie Ramirez, based in Las Vegas.
The decision also places heat on the NCAA, which has not staged championship sports events in Las Vegas because of legalized sports gambling in Nevada.
The NCAA issued this statement: “While we are still reviewing the decision to understand the overall implications to college sports, we will adjust sports wagering and championship policies to align with the direction from the court.”
UNLV Athletic Director Desiree Reed-Francois had a clear reaction to the decision.
And local newspaper sports columnist Ed Graney also advised the NCAA to get with the program.
The sports league that has prepared for this day the best is clearly the National Basketball Association. Its commissioner, Adam Silver, has endorsed the legalization and regulation of sports gambling and even wanted a 1 percent piece of the NBA gambling pie. Here’s the Silver reaction via an ESPN sports-business reporter Darren Rovell post.
Major League Baseball, home to two major betting stories in its history (The Black Sox and Las Vegas resident Pete Rose), issued this statement.
The NHL issued this response. Gambling on pro hockey in Las Vegas has taken on a bigger profile with the Vegas Golden Knights competing in their inaugural season.
NHL: “The Supreme Court’s decision today paves the way to an entirely different landscape – one in which we have not previously operated. We will review our current practices and policies and decide whether adjustments are needed, and if so, what those adjustments will look like. It’s important to emphasize that the Supreme Court’s decision has no immediate impact on existing League rules relating to sports wagering, and particularly, wagering involving NHL games. So, while changes may be considered in the future, today’s decision does not directly impact the operation of the League or any of our Clubs in the short term.”
Keep in mind that it’s not like all states will be rushing to implement sports gambling laws with the ruling. Check out this University of Nevada map showing the states expected to adopt sports betting legislation within two years and within five years.
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LVSportsBiz.com will be updating this story through the day.