As potential stakeholders continue to watch the U.S. Supreme Court for an expected decision in Christie (Murphy) v. NCAA that could repeal the federal ban on sports betting imposed by the 1992 Professional and Amateur Sports Protection Act (PASPA), one of the lead plaintiffs in the case challenging New Jersey’s sports betting law, the National Football League, is learning more about the realities of sports betting.
SI.com reported last week that NFL owners were given a presentation on sports betting, and the gambling and patterns associated with it. According to the SI site, representatives of the NFL’s Tampa Bay Buccaneers and Los Angeles Rams participated in the presentation, offering details of legal sports betting in the U.K., where both teams own English football teams.
Meanwhile, as representatives of the National Basketball Association and Major League Baseball continue to lobby states with sports betting legislation to include an “integrity fee” that would give the leagues a portion of all bets on their teams’ sports, international sports-book operator William Hill U.S. is calling the proposed fees what they are—a cash grab.
“Now, let’s be clear — that’s just a euphemism for a cut of the action,” Joe Asher, CEO of William Hill U.S., told New York state lawmakers in January.
Sports-betting advocates led by the American Gaming Association have said the 1 percent integrity fee proposed by the leagues would make legal sports betting unworkable, and unable to compete with the odds offered by illegal bookmakers.
As those issues play out, potential stakeholders in the states continue to prepare for a possible PASPA appeal. The Maryland Senate Budget and Taxation Committee held a hearing last week on HB 1014, a bill to expand commercial gaming in the state to include sports betting in Maryland. There was no discussion on the bill, which was previously read before the committee on March 16.
HB 1014, which is only two pages long, would allow the State Lottery and Gaming Commission to license “certain sports wagering licenses.” The bill also calls for the issue of sports betting in Maryland to be put on the November ballot, if possible, as a referendum for voters to decide.
In Kansas, Senate bill S 455 addresses sports betting with some language from the Model Legislation promoted by Major League Baseball and the National Basketball Association, which desire a 1 percent integrity fee on all wagers, which amounts to 20 percent of revenue. The Kansas bill, however, scales back the fee to .25 percent and caps it at 5 percent of sports betting revenue. By comparison, the New York sports betting bill has a 2 percent cap.
Sports betting operators can use any source of data for basic types of wagers, according to the bill, but leagues can dictate which data is used for more involved or in-game wagers. The bill states, “Operators shall use only official league data for determining the result of all Tier 2wo sports wagers, provided the relevant sports governing body can provide a feed of official league data to the operator and makes such feed available for purchase by the operator on commercially reasonable terms. Leagues data exclusivity only for in-game wagers.”
Also, under the bill, leagues may ask for betting restrictions on games and types of wagers, but only the state gaming commission would have the final say on the limits.
Observers said the measure’s provisions seem to try to bridge the gap between gaming interests and the leagues, unlike the recently passed West Virginia sports betting law that includes no concessions to the leagues.
The bill authorizes the Kansas lottery to oversee sports wagering at lottery retailers, online and by contracting with gaming and horseracing facilities. During hearings, representatives from the state’s two main commercial casinos, Hollywood Casino and Kansas Star, and officials representing the two state-owned casinos, Boot Hill and Kansas Crossing, unanimously opposed the leagues’ proposals to include an integrity fee or any sort of royalty in the legislation.
In Missouri, the House Budget Committee will hold hearings on April 4 regarding three sports betting bills.
House Bill 2320, introduced by state Rep. Bart Korman, is a bare-bones bill requiring the Missouri Gaming Commission to oversee regulations “establishing standards and procedures for wagering on sporting events.”
HB 2535, sponsored by state Rep. Dean Plocher, calls for a 12 percent tax on sports wagering revenue and includes a 1 percent “sports betting right and integrity fee.” Like Kansas, it also gives the leagues control over data that sportsbooks may use to grade wagers, plus the right to restrict which types of wagers sportsbooks may offer.
HB 2406, introduced by state Rep. Justin Alferman, redefines a “gambling game” so “sports wagering is considered a game of skill.” The bill also allows for currently licensed gambling boats to apply for sports betting certificates, outlines the cost of a license application and calls for a 6.25 percent tax on sports wagering revenue.
Both HB 2406 and HB 2535 would allow sports betting online and on mobile phones, but would require patrons to sign up for an account in person.
