Illegal Super Bowl bets bring new attention to PASPA
Last week’s Super Bowl marked a renewed focus on the Professional and Amateur Sports Protection Act of 1992 (PASPA), which banned full sports betting in all U.S. states except Nevada. As October’s 25th anniversary of the sports ban approaches, the American Gaming Association is renewing efforts to appeal what the organization calls a “failed law.”
The industry attention on PASPA was sparked by projections that some $4.7 billion would be bet in the U.S. on yesterday’s Super Bowl, with only around $200 million of it legal. American Gaming Association President and CEO Geoff Freeman was quick to point out that $4.5 billion in illegal wagers as one of the main reasons PASPA must be repealed, adding that states should be able to decide for themselves on legalization and regulation of sports wagering.
Meanwhile, there were new signs of progress in New Jersey’s lawsuit challenging PASPA, which is before the U.S. Supreme Court. Several other states have joined the lawsuit, initiated after a challenge to New Jersey’s state law that repealed the sports betting ban within New Jersey’s borders.
New Jersey asserts that PASPA is unconstitutional and in violation of states’ rights to repeal their own laws so they can offer regulated and taxed gaming. Arizona, Louisiana, Mississippi and West Virginia are among the states that have joined the challenge.
While Nevada did not join the case, Governor Brian Sandoval agreed last week in an interview with the Las Vegas Review-Journal that repealing PASPA would reduce illegal gambling, and would not harm Nevada casinos.
“I think it will be helpful in terms of illegal gaming, because obviously to bet in Nevada you have to be in Nevada,” Sandoval said. “People are still going to come to Las Vegas and bet on the Super Bowl and make their sports bets. You don’t come to Las Vegas just to sports-bet. You come to eat the food, stay in the hotels, see the shows, to have a great experience. I’ve always felt that if you expand sports betting, it really wouldn’t hurt our state.”
The U.S. Supreme Court has invited the Trump administration’s solicitor general, who has yet to be named, to weigh in on the PASPA appeal. While Trump has made several public statements supporting a lifting of the sports-betting ban, the issue is considered to be low on the president’s priority list.
Super Bowl wagering also was the impetus for a statement issued last week by New Jersey lawmakers urging that states be permitted to rule on sports betting. State Reps. Frank A. LoBiondo and Frank Pallone, Jr., who have reintroduced legislation to legalize sports betting, issued a statement calling for action on their bills and for repeal of the federal ban.
“Sports betting is already happening across our state and across the country, but instead of being appropriately overseen and raising needed revenue for our casinos, racetracks, businesses and the state, these bets are placed through illegal enterprises,” said Pallone. “It is time to bring this activity out of the shadows. I am pleased to join Congressman LoBiondo in reintroducing these common-sense bills that would level the playing field and give New Jersey’s citizens the opportunity to share in the profits from sports betting.”
“Each year,” added LoBiondo, “competition from neighboring states and the proliferation of off-the-books betting grows, leaving Atlantic City’s gaming operations at a disadvantage. I strongly believe that sports betting can help give our famed resort town a hand up, providing yet another unique option for patrons in addition to the quality entertainment, dining, shopping and beaches. I’m pleased Congressman Pallone, our casinos, local elected officials and an overwhelming majority of New Jersey residents agree. Over the years we have made progress on bringing sports betting to our state, and I hope that a bipartisan coalition in Congress can come together in support of legalizing and regulating sports betting.”
Bills submitted by Pallone and LoBiondo would explicitly lift the restrictions on sports betting in the 1992 law. The NJ BET Act (Pallone) would exempt New Jersey from current federal law, and the Sports Gaming Opportunity Act (LoBiondo) would allow all states to enact laws providing for sports betting during a four-year window.
“The bills reintroduced today by Pallone and LoBiondo would ensure a path forward for New Jersey and other states seeking to legalize sports betting, regardless of whether the Supreme Court hears New Jersey’s case,” the joint statement said.
Freeman summed up AGA’s position on the issue in a press release last week.
“As we mark the 25th anniversary of a failed law, it’s time for Washington to get out of the way and lift the federal prohibition that pushes sports fans to a rapidly growing illegal betting market,” Freeman said. “A regulated marketplace would generate tax revenue and jobs, protect consumers and leverage cutting-edge technology to strengthen the integrity of the games we all love.”
“The ability to protect the integrity of games through rigorous data analysis and complex, real-time algorithms—something not fathomable in 1992—is only possible in markets where sports wagering is effectively regulated. A 2016 report advocated for a legal, regulated sports betting market that’s transparent and capable of detecting suspicious betting activities. The report concluded that, ‘rather than setting the standard, the United States is on par with Russia and China, having forced a groundswell of black-market gambling by prohibiting the popular pastime of sports betting.’”
Freeman went on to state AGA’s support for the New Jersey case, in which AGA previously submitted an amicus brief. He noted AGA’s position in opposition of PASPA was echoed by 30 law enforcement leaders from across the U.S. in the AGA’s Law Enforcement Summit in Washington, D.C. last year. He also cited support for a repeal of the ban from the National Council of State Legislatures and U.S. Conference of Mayors and several major sports leagues.
