![handle is hein.journals/gmglwr22 and id is 1 raw text is: SCHNEIDER : EDITORIAL : [2018] 1 GLR 1
NOTES F ROM
THE EDITOR
SUE SCHNEIDER
n my 25 years in the gaming industry, I've
often said that I didn't think I'd see legal sports
betting in the United States in my lifetime.
I've changed that view. There's a legal chal-
lenge to the prohibition law in the U.S. and
the beginnings of a legislative push in Congress.
As well, there's a neutralization if not outright sup-
port by some of the sports leagues that give one
cause for hope.
At a recent conference on the topic in New York City,
it was clear that folks were beginning to see enough
signs of hope to actually get into the nitty gritty about
how legal sports betting could be structured.
But let's start with a little background for the unini-
tiated. The Professional and Amateur Sports Protec-
tion Act (PASPA) was passed by Congress in 1992.
It effectively outlawed sports betting all across the
U.S. except in a few states which opted in at that
time. Some 25 years later, it's seen by many as fairly
ineffective in stopping illegal gambling both by the
corner bookie as well as by offshore operators.
Since that time, the State of New Jersey has filed law-
suits arguing that the law is unconstitutional by not
allowing other states to institute legal sports betting
(Nevada is really the only state that has full-on legal
sports betting). That suit has worked its way up to the
U.S. Supreme Court and oral arguments were heard
in early December. It's expected that a decision on
that case may be forthcoming in April 2018 or there-
abouts.
The sports betting conference was the first of its kind
focusing strictly on this topic. It brought together
representatives from various sports leagues, some
team owners and players' representatives, gambling
operators, sports betting suppliers, regulators, pol-
icymakers, and advocacy groups.
DOI: 10.1089/glr2.2018.2211 © 2018 Mary Ann Liebert, Inc.
The analysts were helpful in setting the stage on
the topic. David Henwood of H2 Capital stated
that their estimate of the illegal gambling market in
the U.S. is around $196 billion. The American Gam-
ing Association, a trade group, puts that number at
$150 billion.
Some 12 states in the U.S. already have put forth leg-
islation indicating that, should PASPA be overturned
by the Court opening up the way for legal sports
betting, they would take advantage of that opening.
There seemed to be general consensus that the num-
ber of states doing so might increase to as many as
17 if that happens.
There was some interesting discussion as to whether
this would actually eliminate illegal sports betting.
There seemed to be no illusion that this would be
the case. Regulatory constraints and high taxes will
be deterrents for gambling operators seeking a prof-
itable activity. Some pointed to the recent 36 percent
tax rate for prospective sports betting activities in
Pennsylvania as a deal breaker. Several veteran Las
Vegas sportsbook operators echoed that sentiment
by attesting to the very small profit margins of the
books there. Better pricing by offshore interests,
the ability to bet on credit, and required reporting
for taxation may well be deterrents for the players
who seek the best deals.
There was much discussion about the integrity of
the games, and people with monitoring groups out-
side the U.S. were helpful in bringing facts and ex-
perience to the discussion.
Much of the debate was about the role of the
states versus the federal government. Some, like
the representative of the National Basketball Asso-
ciation (NBA), said that they preferred a federal
approach and will begin lobbying for that sort
of law in Congress in 2018. At a minimum, some
base federal standards could be developed to
help guide states as they develop sports betting
regulations.
But others seemed resigned to the fact that, given the
history of gambling laws being the purview of the
states, this would be the likely approach for legaliza-
tion. An Ohio state senator on a states' rights panel](ViewImageLocal?handle=hein.journals/gmglwr22&div=1&collection=&method=preview&ext=.png&size=3)
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