More than 15 states are lined up at the starting gate for a potential repeal or judicial strikedown of the federal prohibition on sports betting, an indication of growing momentum and interest in the activity at the ground level.
Connecticut and Mississippi have already passed legislation legalizing the activity in their jurisdictions should the Professional and Amateur Sports Protection Act – which largely prohibits sports betting outside of Nevada – be struck down in some manner.
13 other states have introduced similar pieces of legislation so far this year, and still others are toying with the idea. Taken together, these initiatives are ramping up pressure on national decision makers and demonstrating an organic interest in the activity, a G2E panel noted Wednesday afternoon.
The state-level push comes on the heels of New Jersey’s decision to partially repeal its state prohibitions on sports betting in 2014, a move that resulted in a string of legal challenges that ultimately has resulted in the U.S. Supreme Court agreeing to hear the case.
The high court is expected to announce on Friday when it will hear oral arguments.
The dilemma states now face is in preparing for three potential ways by which PASPA could be undone.
The first is via a legislative repeal by Congress, which would allow for individual states to move forwards with implementing their own respective sports betting frameworks, must as is the situation currently with Internet gaming.
The second route is if the Supreme Court strikes down the law in some manner. If this happens, the landscape could prove a bit hairier, as there are numerous potential aspects of PASPA that could either be upheld or deemed unconstitutional. Such a scenario could prompt an immediate free-for-all among states seeking to be the first to seize the opportunity, or inhibit such moves because of lack of guidance from the court.
The third would be an outright ruling against the constitutionality of PASPA. This would create a ‘wild wild west’ scenario where states would move forward at their discretion, with the most likely outcome being the court ruling the law unconstitutional and then giving clear guidance as to how the activity should be regulated at the state level, reckoned Sara Slane, Senior Vice President of public affairs at the American Gaming Association.
“The timing of the Supreme Court decision has really kicked this into high gear,” she said.
For states and tribes, the opportunity to grow their gaming revenue pie is proving tempting.
“States are looking for an additional revenue source. I don’t know of a state today that has enough money to do everything they want,” said Jamie Hummingbird, director of the Cherokee Nation Gaming Commission.
For Mississippi, sports betting is being seen as a way to grow revenues in an otherwise saturated market.
“We feel certain that it is prime time for sports betting to be in our state,” said Larry Gregory, executive director of the Mississippi Gaming and Hospitality Association. “We look at it as a grand opportunity to turn around somewhat suffering visitation numbers. Gaming revenue has been down somewhat, and this is a great opportunity to turn that trend in a more positive direction.”
