Monday A Key Date For U.S. Sports Betting
US Supreme Court hearing on New Jersey appeal starts
December 4 is a key date for US sports betting as the US Supreme Court begins hearing arguments on New Jersey‘s appeal for relief from the provisions of the highly restrictive federal Professional and Amateur Sports Protection Act, seeking to widen and liberalise the sports betting market in the United States.
The proceedings will be avidly watched by operators, lobbyists, punters and industry specialists alike, because a favourable decision could see a massive regulated and licensed market, boosting consumer protection, earnings for operators and tax revenues for states.
Media reports indicate that around a dozen states have passed, or are working on, legislation enabling a fast take-up of sports betting if it is made more widely legal, and a number of other states are monitoring the case closely due to its potential impact on sports betting within their borders and the potential for increased tax revenues.
The New Jersey case has dragged on for years (see previous InfoPowa reports) as the Garden State pioneered states’ right to control gambling within their borders, opposed by the national sports bodies and the Department of Justice.
Eighteen individual US states have backed New Jersey’s initiative, along with leading horse racing and casino trade bodies like the American Gaming Association.
The arguments have gone back and forth in a series of lower courts over the years, with New Jersey losing repeatedly; the US Supreme Court appeal could be the state’s last throw of the dice…and the demise of hopes for a more liberal US legal sports betting regime in the foreseeable future.
There are literally billions of dollars in revenues in prospect here
New Jersey wants to allow only certain types of sports betting, at casinos and racetracks, by bettors who are at least 21.
Legal experts and lobbyists have opined that other states would be sure to follow if New Jersey prevails in the Supreme Court hearing, with media reports indicating that the justices should deliver their verdict by mid-year.
Connecticut, Mississippi, and Pennsylvania are among states that have passed conditional legislation enabling them to quickly adopt sports betting in the event of a positive Supreme Court outcome, but up to 20 other states are said to be interested in following suit.
Big Day For New Jersey Sports Betting (Update)
Supreme Court hearings on overturning PASPA begin
Stakeholders in the potential sports betting market in New Jersey will be watching proceedings with interest as they kick off in the US Supreme Court today.
New Jersey Governor Chris Christie will open oral arguments in opposition of the 1992 Federal Professional and Amateur Sports Protection Act (PASPA) which effectively denies most US States from offering sports betting.
PASPA proponents, college and professional sports leagues, are also expected to present their cases in the form of oral arguments.
Positive Feedback Coming Out Of PASPA Hearing (Update)
Precisely what federalism is designed to prevent, Justice says
Initial feedback coming out of the US Supreme Court’s hearing on New Jersey’s challenge to the Professional Amateur Sports Protection Act (PASPA) is tentatively positive as numerous US news agencies report the bench appears to be “leaning towards overturning PASPA and allowing sports betting in New Jersey”.
New Jersey’s argument that PASPA infringes upon individual state Sovereignty and violates the Constitution’s principle of federalism seems to have struck a cord with the bench.
“This blurs political accountability because the citizen doesn’t know if it is the state government or the federal government banning sports betting,” Justice Anthony Kennedy said.
“This is precisely what federalism is designed to prevent.”
In a press briefing that followed the hearing, proponent State Senator Raymond Lesniak said:
“It’s not quite a slam dunk, but it’s like Tiger Woods on a five-foot putt. This has been a nine-year battle of mine finally coming to fruition. … This time I think we’re going to win. This is going to be the lifeblood of Atlantic City and our racetracks. Both of these industries are dying.”
The bench is expected to rule by the end of June 2018.
Nevada Congressional Representative Urges Lawmakers To Prepare For Sports Betting Changes
Rep. Dina Titus points to possibility of market liberalisation following Supreme Court hearing
Nevada Rep. Dina Titus wants her fellow lawmakers in Congress to prepare for the potential $150 billion a year advent of a more liberalised US sports betting market if the US Supreme Court rules in favour of New Jersey in its landmark case against the federal Professional and Amateur Sports Protection Act.
Writing to Democrat and Republican congressional leaders, Titus urged:
“Members of Congress need to be prepared should action at the Supreme Court open the door for sports betting in their home state or warrant federal legislation. Accordingly, I respectfully request that the Energy and Commerce Committee hold a hearing on the future of sports betting in the United States.”
A spokesman for the current chairman of the Energy and Commerce Committee said the chairman had no immediate comment to make on Titus’ request, but a spokesman for the committee’s top Democrat, New Jersey Rep. Frank Pallone, reminded media that back in May this year Pallone submitted a discussion draft dealing with the possible repeal of PASPA, and the legalisation of online gambling.
Titled the Gaming Accountability and Modernization Enhancement Act, the proposal seeks to allow states to legalise sports betting and online gambling, if appropriate consumer protections are in place.