AGA: Legal sports betting active or in the process in half of U.S. states in 2019

Thursday, January 31, 2019 5:05 AM

By the end of this year, half of the 50 states in the U.S. will have either legalized regulated sports betting or begun the process to consider legislation for the activity.

Apparently, that’s just fine with some two-thirds of the U.S. population.

As the nation settles in to watch the New England Patriots battle the Los Angeles Rams in Super Bowl LIII on Sunday in Atlanta, almost 23 million Americans are expected to wager an estimated $6 billion on the game. The vast majority, however, will be placing the bets illegally.

That’s one reason the Washington D.C.-based American Gaming Association released results of a survey Wednesday showing 63 percent of those questioned nationwide agreed with the U.S. Supreme Court’s decision last May to strike down a federal ban on the activity.

In addition, 66 percent of those questioned by Morning Consult believe regulation and oversight of gaming should be left to the individual states – viewed as a stance against a proposed federal regulation of sports betting.

The AGA added that eight-out-of-10 Americans support legalizing sports betting in their states.

The challenge, AGA Senior Vice President of Public Affairs Sara Slane said during a conference call Wednesday, is providing those who want to wager on sports safe and regulated alternatives to the corner bookie or off-shore betting operations accessed through the Internet.

“Wagering on the Super Bowl is embedded into the fabric of the American culture,” Slane said. “In fact, Americans will bet 10 times more on the Super Bowl than they will spend on pizza and chicken wings the night of the game. Americans’ desire for legal sports betting is real and there is still plenty of work to do to eliminate the illegal market.”

Last year in Nevada, Super Bowl LII attracted a record $158.5 million in wagers according to the Gaming Control Board. Nevada sportsbook operators said gambling on Super Bowl LIII will exceed 2018’s numbers. According to the Nevada Gaming Control Board, wagering on the Super Bowl has increased in nine out of the last 10 years.

Following the Supreme Court ruling, Delaware, New Jersey, Mississippi, West Virginia, Pennsylvania and Rhode Island passed laws legalizing and regulating sports betting. A tribal casino in New Mexico was allowed by the state to open a sports book. The seven states joined Nevada in offering legal sports gambling operations.

In the eight states, sports bettors wagered nearly $1 billion in November, with $4 out every $10 wagered outside Nevada.

VSiN is projecting the total amount of money wagered on Super Bowl LIII nationwide legally will double from last year, to roughly $320 million. The figure includes Nevada’s total along with the seven new sports betting states.

Slane said other states are poised to join the game.

Oregon, Arkansas and Washington D.C. voted to legalize or authorize sports betting, but have yet to begin operations. So far, 15 states have either active or pre-filed legislation to legalize sports betting.

“We thought 2018 was a busy year,” Slane said. “2019 is already making it look dull.”

Five of the states with pre-filed or active legislation – Kentucky, Tennessee, South Carolina, Virginia, and Hawaii – don’t even have casinos.

The shocking name on the list is Hawaii, which is just one of just two states in the country without a casino or a lottery.

Slane said the states without casinos could allow the activity at a racetrack, through a lottery, or via mobile wagering.

More than half of the states with pending bills include mobile sports wagering as part of the package. Mississippi and Rhode Island, which legalized sports betting last year, have introduced bills to fully legalize mobile wagering in their states.

“State legislatures clearly recognize that in order to bring consumers into the legal, regulated market, they need to offer convenient access,” Slane said.

Slane cited 11 additional states where legislation could be introduced in 2019.

“Today’s research reveals that with sports betting legislation flooding state capitals across the country, legislators can pursue these opportunities knowing they have the support of their constituents,” Slane said.

The AGA’s new survey also found that just 23 percent of Americans believe that sports leagues should collect a fee from the amount wagered on game, while 55 percent oppose the idea.

Slane said during the conference call recent marketing and sponsorship deals, such as the agreement signed by Caesars Entertainment and the NFL, and the partnership programs between MGM Resorts International and the NBA, NHL and Major League Baseball, and the pending move of the NFL’s Oakland Raider to Las Vegas, have helped forge a softening in any opposition to state-by-state sports betting legalization.

Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.