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Will it be a slam dunk for the US sports betting wagering restriction?
By Natalie Sherman
Business reporter, New York
bit.ly
A ban on sports betting in a lot of US states could be overturned by a case being considered by the Supreme Court.
The state of New Jersey is challenging the 1992 federal law that mainly banned sports betting, explaining the matter as a “states’ rights” issue.
The case, which began on Monday, comes after New Jersey homeowners enacted 2011 to legalise sports betting.
A group of sports betting leagues opposes sports betting on video games, which they fear will motivate match-fixing.
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Lower courts have regularly ruled versus New Jersey, stating it is within the federal government’s power to limit a state’s policy alternatives.
The Supreme Court chose to hear the case nonetheless amidst a larger shift in American mindsets towards gambling.
Before 1976, Nevada - home of the Las Vegas strip - was the only state with legal gambling establishments outside Native American lands.
But in the last few years, states hungry for tax revenue in the wake of the monetary crash have actually a rash of looser sports betting laws, collecting substantial levies on gaming revenue.
There are now 24 states with commercial gambling establishments - roughly double the number a decade back.
Despite the official restriction, which already exempts Nevada and three other states, illegal sports betting is rife in the US.
Americans put about $154bn in unlawful sports betting bets every year, according to the American Gaming Association.
The association’s president, Geoff Freeman, described the federal restriction, external as an “utter failure” previously this year.
It says the UK is an example of a country where sports betting is commonplace.
“It’s time for Washington to stop denying states of crucial tax income and allow them to gain the rewards of a regulated market,” Mr Freeman said.
More than 15 states filed papers in assistance of New Jersey in the case. A handful have currently passed laws to authorise sports betting in the event of a change.
‘Times have changed’
On Monday, as legal representatives began arguments for the Supreme Court, some more conservative judges appeared sceptical of the existing law.
The court is expected to make a choice in June 2018.
“If we achieve success here we could have bets being taken in New Jersey within 2 weeks of a decision by the court,” said outgoing New Jersey guv Chris Christie after attending the court hearing. “We’re prepared in New Jersey - we’re all set to go.”
Despite the court’s last ruling, Congress may also take up the debate amidst broader conversation about online gaming and e-sports betting.
Even a few of the professional sports betting leagues have actually started to alter their positions on the concern of gambling.
Adam Silver, National Basketball Association commissioner, supported a federal law that would develop an uniform set of rules across the US. “Times have altered,” he wrote in a 2014 opinion piece, external.
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