US Supreme Court repeals federal sports betting ban
Today's long-awaited ruling could potentially open the floodgates for regulated sports betting in the US
The US Supreme Court has declared the federal ban on sports betting to be unconstitutional, opening the door to legal sports wagering in the country.
Seven of the Court’s justices ruled in favour of New Jersey, declaring the Professional and Amateur Sports Protection Act (PASPA) violates the 10th Amendment guaranteeing states’ rights.
The court noted: “The legalization of sports gambling requires an important policy choice, but the choice is not ours to make.
“Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not. PASPA “regulate[s] state governments’ regulation” of their citizens. …. The Constitution gives Congress no such power. The judgment of the Third Circuit is reversed.”
The onus now falls on to states themselves to regulate sports betting individually.
New Jersey Governor Phil Murphy said he looked forward to working with the legislature to enact a sports betting bill “in the very near future”.
Monmouth Park racetrack in New Jersey could be taking bets within two weeks according owner Dennis Drazin. The track has been fitted out with a William Hill sportsbook in preparation for several years.
Joe Asher the CEO of William Hill US said the firms was excited “not just for us but for sports fans across the country”.
“We’ve been working towards this day for a long time and take great satisfaction in the Supreme Court’s decision,” he added. “We’re going to get Monmouth Park open for business as soon as responsibly possible.”
Analysts have predicted that an expanded and legal U.S. marketplace for the sports-betting industry could generate at least $7bn annually.
“The decision is a jackpot for not just sports betting, but the entire gaming industry in general,” said US gaming attorney Jeff Ifrah.
The American Gaming Association said in a statement: “Today’s decision is a victory for the millions of Americans who seek to bet on sports in a safe and regulated manner.”
“The AGA stands ready to work with all stakeholders – states, tribes, sports leagues, and law enforcement – to create a new regulatory environment that capitalizes on this opportunity to engage fans and boost local economies.”
https://twitter.com/JoeTall/status/996048404122820608
Smarkets was one of the first UK firms to react to the news, announcing it was applying for licensure in New Jersey.
“We congratulate New Jersey for their win and look forward to bringing Smarkets’s world-leading sports betting technology to the U.S. market,” the firm said.
Smarkets CEO Jason Trost added: “This is a landmark moment for the U.S. which ends the failed 25-year ban on sports wagering. While this is a huge victory for the sports betting industry and for consumers, there is a lot of work left to be done at the state legislative level. Smarkets, in conjunction with the American Gaming Association, will continue to engage with state policymakers across the country with the goal of creating a robust and competitive regulated market.
“Having started a betting exchange in the UK, one of the most sophisticated betting environments in the world, there is a chance now for the US, as a leading nation, to shape its own 21st-century regulation and be a leader for the rest of the world.”
The news sparked a rash of share price increases, with William Hill shares up 8%, Paddy Power Betfair up 9%, GVC up 5% Stars Group up 10% and 888 up 16%. Read EGR’s recent feature on which European firms are best placed to succeed in the US.
DraftKings not hanging around https://t.co/CSxDgPiocR
— EGR Global (@EGRIntel) May 14, 2018
FanDuel and DraftKings both immediately announced plans to launch sports betting products, with FanDuel saying the decision created an “enormous opportunity” as its “platform, brand, and customer base provide a unique and compelling foundation to meaningfully participate”.
The firm added: “At our core, we’re a business that makes sports more exciting. In the same way we revolutionized fantasy sports, we will bring innovation to the sports betting space. This decision allows us to bring the passion and engagement we have seen among our users to new and expanded marketplaces and create a sports betting product that fans will love. FanDuel is and will continue to be the premier mobile destination for every sports fan.”
Kind of poetic that I’m mid-flight on the way to Vegas when the news we won in SCOTUS came in. Enjoy it everyone. Then get back to work. A lot of legislation and regulations to hammer out.
— Joe Brennan Jr (@joebrennanjr) May 14, 2018
Notes on how @NFL will react to the sports gambling news: 1. Maintaining integrity of the game is the highest’s priority. 2. It won’t rush into the biggest pot of dollars. Will slow-play this & think long-term. 3. The direct dollars will come from licensing, logos, videos & data.
— Ian Rapoport (@RapSheet) May 14, 2018
A great day for the rights of states and their people to make their own decisions. New Jersey citizens wanted sports gambling and the federal Gov't had no right to tell them no. The Supreme Court agrees with us today. I am proud to have fought for the rights of the people of NJ.
— Chris Christie (@GovChristie) May 14, 2018
The MLB Player’s Association executive director Tony Clark said in a statement: “From complex intellectual property questions to the most basic issues of player safety, the realities of widespread sports betting must be addressed urgently and thoughtfully to avoid putting our sport’s integrity at risk.”