Category Archives: Sports Betting

New Jersey’s Monmouth Park looks to Sue Sports Leagues now that the Supreme Court has legalized Sports Betting

Casino Watch Focus has reported on the ongoing efforts by New Jersey to legalize sports betting. Four years after numerous legal losses and failed attempts, they finally presented a winning argument to the Supreme Court to overturn the existing legislation that limited sports betting to Las Vegas. The driving force behind all those legal defeats was the coalition of professional sports leagues, the NCAA and even the DOJ. And now that the Supreme Court has declared the federal law unconstitutional, there are those that believe the sports leagues should have to pay for the lost revenue due over the years. An online source explains: 

New Jersey’s Monmouth Park is suing US sport’s major leagues over blocking betting in the garden state for the last four years. New Jersey’s first legal sportsbook venue is asking for $150 million from Major League Baseball, National Basketball Association, NFL and the National Collegiate Athletic Association. 

Officials for Monmouth Park said that their relationship between the gambling industry and the sport’s leagues is evidence enough to show proof of revenues lost because of the blocking. The courts is waiting on a formal response from the leagues. They have until July 16^th to file their answer. The Leagues called the request from Monmouth “meritless, if not frivolous”.

Beyond the at-face nature of this $150 million dollar lawsuit being meritless, a deeper look into the issue reveals exactly why this is beyond a long shot. An online source explains: 

The NFL and its allies have doubled down on an effort to prevent Monmouth Park not only from collecting $150 million in damages for being deprived of legal sports betting for a span of 3½ years, but also to deny the racetrack any portion of a $3.4 million injunction bond.

The crux of the case is that, in retrospect, the U.S. Supreme Court found that a New Jersey law passed in 2012, the Sports Wagering Act, actually was valid because the federal law improperly “commandeered” most states into preventing sports betting. But along the way U.S. District Court judge Michael Shipp disagreed with New Jersey, twice, as did a U.S. Third Circuit Court of Appeals, twice, and a full panel of the Third Circuit, once. Thus the case took six years, only to be turned on its head at the highest level.

The leagues note that the filings by the horsemen “cites no authority for the patently absurd proposition that reliance on a duly enacted federal statute constitutes bad faith because the Supreme Court subsequently invalidated the statute as unconstitutional years after that reliance. Congress enacted PASPA in 1992, and, for more than 25 years, the clear language of the statute expressly provided the Leagues with a cause of action to obtain injunctive relief to address violations of the statute. Until May 2018, every challenge to the constitutionality of PASPA — both before and after the Leagues relied on the statute to seek a TRO [temporary restraining order]— had been rejected.”

“NJTHA has not demonstrated that, given the state of the law on PASPA in 2014, it had a right to operate a sports betting venue at Monmouth Park in October and November 2014, when it was restrained by the TRO from doing so. That the Supreme Court struck down PASPA more than three years later in 2018 is insufficient to summarily conclude that NJTHA had the right to operate a sports book in 2014.” Remember, the law in play in 2014 — the “deregulation” version — was not validated by the Supreme Court. In the fall of the 2014, Monmouth Park wanted to offer privatized sports betting. No court has ever said they could do it that way. It’s an interesting wrinkle that the horsemen may be hard pressed to overcome.

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New Wave of Sports Gambling Brings Real Gambling Addiction Fears & Consequences

Casino Watch Focus has reported on the recent Supreme Court decision which legalized sports betting outside of the limited venues like Las Vegas. Many states have already legalized this gambling in their states, including the state responsible for taking the case to the Supreme Court, New Jersey. With this new and immediate access to gambling, many are worried about a crop of new gamblers falling pray its harmful addiction. An online source explains:

Much of the apprehension relates to the prospect of myriad forms of online sports betting — accessible to gamblers at any time and location via their mobile phones. There‘s particular alarm over the anticipated explosion of so-called “in-game wagering” in which gamblers bet, often at a rapid pace, on play-by-play developments — for example, will the next football play be a run or a pass. “You lose track of time,” said Les Bernal, national director of Stop Predatory Gambling. “The goal of the operators is to get you into a zone where you lose your financial reasoning and think of nothing except betting.”

“We think this is the biggest expansion of gambling in our nation‘s history, in one fell swoop,” said Keith Whyte, executive director of the National Council on Problem Gambling. “Absolutely, categorically, there will be more risk factors for addiction — we‘ve never had that much high-speed, high-stakes interactive access to any sort of betting.”

The dangers associated with problem gambling are numerous and not only will this radical expansion of gambling create new addicted gamblers, its going to have a very negative effect for those patients who are already addicted. An online medical source explains:

Legalizing sports betting may have grave consequences for individuals with gambling addiction. Healio Internal Medicine spoke with Mark A. Celio, PhD, assistant professor at the Center for Alcohol and Addiction Studies at Brown University School of Public Health.

“Gambling can impact health in many ways. For example, gambling can directly or indirectly increase stress. It could be financial stress or it could be interpersonal in nature. Either way, long-term exposure to stress has very real consequences for physical and mental health. Ironically, problem gamblers may believe that gambling provides relief from stress. These people can easily find themselves stuck in a cyclical pattern where their gambling produces stress that they then try to alleviate with more gambling, only to be left with more stress.”

The National Council on Problem Gambling provides resources for screening, as well as services that are available in each state: https://www.ncpgambling.org/

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NFL Commissioner Roger Goodell Asks Federal Government for Sports Betting Oversight while States Fight for Their Right to Regulate

Casino Watch Focus has reported on the ongoing efforts to legalize sport betting. The Supreme Court ruled that the federal law that prevented nationwide sports betting was unconstitutional. As a result, states are now able to legalize this form of gambling. Naturally, the sports leagues are very concerned given their position has always been to oppose legalized sports betting due to worry of the integrity of the game. Now that federal law has been overturned however, the leagues are getting involved in a variety of ways. NFL Commissioner Roger Goodell is asking Congress to establish uniform policies based on four core principles. Yahoo sports provides Goodell’s statement:

As it was for my predecessors, there is no greater priority for me as the Commissioner of the National Football League than protecting the integrity of our sport. Our fans, our players and our coaches deserve to know that we are doing everything possible to ensure no improper influences affect how the game is played on the field. This week’s ruling by the Supreme Court has no effect on that unwavering commitment.

We have spent considerable time planning for the potential of broadly legalized sports gambling and are prepared to address these changes in a thoughtful and comprehensive way, including substantial education and compliance trainings for our clubs, players, employees and partners. These efforts include supporting commonsense legislation that protects our players, coaches and fans and maintains public confidence in our games. We are asking Congress to enact uniform standards for states that choose to legalize sports betting that include, at a minimum, four core principles:

1. There must be substantial consumer protections;
2. Sports leagues can protect our content and intellectual property from those who attempt to steal or misuse it;
3. Fans will have access to official, reliable league data; and
4. Law enforcement will have the resources, monitoring and enforcement tools necessary to protect our fans and penalize bad actors here at home and abroad.

At the same time Goodell and the leagues are looking after their interests, the states are also positioning themselves to get a cut of this new wave of gambling. Unfortunately for the states, it appears federal legislation is already in the works. An online source explains: 

State gambling regulators are fighting back against the major sports leagues’ assertion that US sports betting would be better regulated by the federal government than by individual states. A statement on Tuesday issued on behalf of four state regulators in Nevada, Michigan, Massachusetts and Louisiana by the International Center for Gaming Regulation at the University of Nevada, Las Vegas, concludes that “coordinated action among jurisdictions” — rather than federal regulation — will be the key to protecting sports integrity and battling the black market. Goodell called on Congress to “enact uniform standards” for states that opt to regulate. It doesn’t take a genius to work out the subtext: why lobby for your interests in dozens of states when you can save a lot of money by just lobbying Congress? US Senator Orrin Hatch (R-Utah) is known to have had talks with the NFL and is planning to introduce federal sports betting legislation which, when it surfaces, is likely to include the league’s “core principles.”

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Despite Supreme Court Ruling to Legalize State Sports Gambling, Florida doesn’t Seem Likely to See Such Gambling Expansion this Soon

Casino Watch Focus has reported on the ongoing efforts by New Jersey to legalize sports betting, including the news that the Supreme Court may have just put forth the largest expansion of gambling policy ever by allowing all states to now legalize it. For months states have been gearing up for this possible scenario and the sports leagues have likewise been in communication with state legislatures to ensure they see a piece of the new gambling pie. However, Florida may be one of the few states that wont see an immediate rush to capitalize on this new gambling expansion frenzy. The Florida Times Union online explains: 

in Florida, two major obstacles — a ballot initiative and the need for a special legislative session — stand in the way of joining states such as Mississippi and Pennsylvania, which have cleared the decks to allow gamblers to bet on professional and collegiate sports teams as soon as the NFL season begins in the fall.

A proposed constitutional amendment on the November ballot will allow Florida voters to decide if they want to control decisions about gambling, something now largely left up to the Legislature. If Amendment 3 passes, voters statewide would have to sign off on future gambling expansions.

Sen. Bill Galvano, R-Bradenton, who has been a lead negotiator on gambling issues for several years, said Monday the high court ruling won’t have an immediate impact on Florida, where sports betting is illegal.

Galvano and his House counterpart, Jose Oliva, R-Miami Lakes, last month raised the possibility of a special session to address perpetually elusive gambling issues but abandoned the notion after Gov. Rick Scott secured a yearlong gambling deal with the Seminole Tribe. The agreement is focused on the tribe’s promise to continue making payments to the state in exchange for “exclusivity” over “banked” card games, such as blackjack. A special session in reaction to Monday’s court decision is unlikely, Galvano said.

John Sowinski, the chairman of Voters in Charge, a political committee behind the amendment, called the court ruling another reason to support the proposed constitutional amendment because the measure would give voters a say in gambling activities. “A lot of people in Florida would be relieved to know that, if we’re going to have sports gambling in this state, it’s going to happen by design of Florida voters, not by Tallahassee politicians and gambling lobbyists,” he said.

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UPDATE: Supreme Court Strikes down Federal Sports Betting Ban, Creates ‘Wild West’ for Sports Gambling and Potential Devastation for Problem Gamblers

Casino Watch Focus has reported on the ongoing efforts lead by New Jersey to reverse federal bans of sports betting. After many failed attempts, New Jersey has finally succeeded in opening the door for them to regulate sports gambling. This obviously opens the door for every state as well, and the ramifications will be serious. In an op-ed piece published by the Hill, John W. Kindt, a professor of business and legal policy in the Department of Business Administration at the University of Illinois’ Gies College of Business, who for 20 years has focused his specialty research on the societal, business and economic impacts of decriminalizing gambling activities, outlines how such a reversal of policy creates a Wild West: 

On Monday, the Supreme Court issued its decision in Murphy v. NCAA, a case brought by the State of New Jersey to overturn the 1992 Professional and Amateur Sports Protection Act (PASPA), which was sponsored, ironically enough, by former Sen. Bill Bradley (D-N.J.), a professional basketball legend, to protect the integrity of U.S. sports. Trying to legalize sports gambling, New Jersey lost twice in U.S. district court and twice in the Third Circuit U.S. Court of Appeals between 2012-2014. In a perplexing move, however, the Supreme Court accepted New Jersey’s appeal and heard the case on Dec. 4, despite the recommendation of the Office of the Solicitor General advising the court to reject New Jersey’s appeal.

Generally ignoring the practical economic and social effects of enabling unregulated “real time” sports gambling, for example by kids on cell phones, a divided court decided “to destroy PASPA rather than salvage the statute” complained Justice Ruth Bader Ginsburg in her dissent.

The majority decision focused almost exclusively on New Jersey’s myopic arguments invoking the “anti-commandeering” principle of a 1992 case New York v. United States, while ignoring the obvious interstate impacts and the well-established Commerce Clause empowering congressional action on interstate sports.

While appearing innocuous to the uninitiated, the Murphy case will quickly generate ubiquitous and unregulated “Wild West” sports gambling. It is academically well-documented that this type of gambling is poised to explode with local and strategic economic impacts negatively affecting the U.S. economy.

While unlikely, immediate congressional actions regulating the practical impacts of the Murphy case are necessary.

While the Supreme Court cited the U.S. Gambling Commission’s 1999 Final Report, the court missed the Final Report’s numerous recommendations against gambling in cyberspace — particularly sports gambling.

Sports gambling in real time on cell phones and computers was highlighted as an example of the “crack cocaine” for hooking college students, teens and kids into addicted gambling. The Supreme Court also missed a wide spectrum of negative economic and financial issues associated with widespread sports gambling.

The complete editorial can be read HEREAdditionally, its important to understand this move might be the single greatest expansion of gambling seen by a single court case. The ramification of such explosive legalized gambling cant be overstated. A Press Release by the National Council on Problem Gambling explains their position: 

“Today’s ruling by the Supreme Court is the largest potential expansion of gambling in our nation’s history now that an additional 49 states have the opportunity to legalize sports betting. NCPG believes the expansion of legalized sports gambling in the United States will likely increase gambling participation and gambling problems unless steps are taken to minimize harm,” says Marlene Warner, President of the NCPG Board of Directors.

NCPG’s wide-ranging and deep experience in these fields since 1972 allows the organization to provide a clear-eyed perspective on both the benefits and pitfalls of legalized gambling, and to find a middle way that addresses concerns on all sides. Revenues from legalized sports betting must be viewed in the context of social costs. Research has shown that current gambling activity generates over $115 billion in overall revenue to local, state and federal government, but also results in $6.5 billion in associated costs, including criminal justice and healthcare costs. These costs are often hidden and difficult to see. Approximately 2% of adults experience gambling problems, or approximately 5 million people. These social and economic impacts must not be ignored.

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The 4 Major Players Sports Association and the PGA join the MLB and NBA Regarding Having Their Cut of the Potential Sports Betting Action

Casino Watch Focus has reported on the ongoing Supreme Court case and the history leading up to the potential legalization of sports betting. New Jersey has taken years of attempts to legalize sports betting in their state to the Highest Court and a ruling is expected soon. With the prevailing thought being the Supreme Court will legalize sports betting outside of Las Vegas, many are looking forward to the landscape, and positioning themselves to benefit from the gambling expansion that would follow. Recently, Major League Baseball and the National Baseball Association started suggesting legislation to various states that would provide them with a cut of the gambling action, or in their words, and integrity fee. Now it would appear the PGA has decided to make their position known, and they are supporting an integrity fee as well. An online source explains:

With Illinois the latest state to consider legalizing sports betting, the PGA Tour took the opportunity to voice its support for initiatives backed by the NBA and Major League Baseball.

The revelation of professional golf’s stance on the issue of gambling was disclosed at a hearing of the Illinois Senate Gaming Committee on Tuesday. It was the first time that the tour voiced a definitive opinion on the subject.

So chalk up another professional ruling body’s support for the controversial integrity fee. The NBA and MLB have spent considerable sums trying to persuade several state’s legislators in attempting to get what amounts to a royalty from any potential sports betting a state may implement. The two leagues have a reported 30-registered lobbyists working the halls of 16 state congresses.

It wasn’t just the PGA that voiced their support for a seat at this potential gambling table. In a joint statement released by the MLB Players associationit would appear all four major players groups wants to be a part of ensuring this so called “integrity”:

“Given the pending Supreme Court decision regarding the Professional and Amateur Sports Protection Act (PAPSA), representatives of the MLBPA, NBPA, NFLPA and NHLPA have been working together on the legal, commercial, practical, and human consequences of allowing sports betting to become mainstream. The time has come to address not just who profits from sports gambling, but also the costs. Our unions have been discussing the potential impact of legalized gambling on players’ privacy and publicity rights, the integrity of our games and the volatility on our businesses. Betting on sports may become widely legal, but we cannot allow those who have lobbied the hardest for sports gambling to be the only ones controlling how it would be ushered into our businesses. The athletes must also have a seat at the table to ensure that players’ rights and the integrity of our games are protected.”

As far as the likelihood of the Supreme Court legalizing sports betting by declaring the PAPSA unconstitutional, the mood has slightly shifted. Initially the prevailing thought was that the Court took up the case and then asked the questions they did during oral arguments because they planned to reverse the lower court. This could still be the case, but given the delay in the actual ruling, some are now worried the Court may now uphold the constitutionality of the PAPSA. An online source reports:

It’s been four months since the Supreme Court of the United States (SCOTUS) heard arguments regarding the Professional and Amateur Sports Protection Act (PASPA) of 1992, the current federal law that prohibits sports betting in all but four American states.

During the December 4 hearing, many in the courtroom felt a majority of the justices were on New Jersey’s side in the state arguing that PASPA violates the Constitution and anti-commandeering interpretations of the Tenth Amendment. But with an opinion still not issued, there’s a growing concern among repeal proponents that the court might not produce a favorable decision.

Many believed March 5 would be the day SCOTUS unveiled its PASPA opinion. In February, online sportsbook BetDSI was taking wagers on the release date and had March 5 the favorite at even money. It was followed by April 2 (+150), April 30 (+300), May 14 (+750), May 21 (+1000), and May 29 (+2500). The sportsbook has since removed the market, as handicapping the line is nearly impossible as SCOTUS provides no information as to when opinions will be released.* The next most probable release date is April 30, as the Supreme Court tends to publish opinions on Mondays when the court is in session, but not hearing arguments.

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Supreme Court Could Rule in Favor of Sports Betting Expansion Soon, MLB & NBA Seek to Impose a Controversial Integrity Fee

Casino Watch Focus has reported over the years on the numerous efforts by New Jersey to legalize sports betting in their State. As is stands. Las Vegas is the only place where sports betting in allowed and the Supreme Court has heard arguments about the appropriateness of the PASPA, the law which makes it illegal outside of that specific jurisdiction. Experts believe the ruling could come as early as Monday, April 2nd, so states are getting ready. The Washington Post reports:

Some time before July — perhaps as early as Tuesday — the Supreme Court is expected to make a ruling that could drastically alter sports gambling in the United States, possibly striking down the 25-year-old federal law that largely prohibits sports bets outside of Nevada or maybe allowing individual states to decide for themselves whether fans should be permitted to wager on games.

While the Supreme Court could opt to maintain the status quo, many sports gambling analysts and court-watchers anticipate a ruling that lays out some sort of path to legal sports wagering. At oral arguments in December, a majority of justices seemed receptive to New Jersey’s argument. At least 18 state legislatures have some form of legislation in the works in anticipation of the Supreme Court giving them a path to legalized sports betting.

The States aren’t the only ones preparing for such a Supreme Court decision. Whereas the NHL and NFL are continuing their position of opposing sports gambling, the NBA and MLB are actively lobbying state legislatures to craft gambling legislation that they believe will be integral to the leagues. Bloomberg explains:

Now, on the eve of a Supreme Court decision that could reshape gambling in America the leagues have come around. Professional baseball and basketball have gone further: They also want a cut of the profits, drawing a new battle line with the casinos and sparking a state-by-state lobbying war. The National Basketball Association and Major League Baseball are asking legislators to require casinos to pay the leagues 1 percent of all wagers placed on their sports. Casinos and sports book operators, unsurprisingly, are vehemently opposed.

The fee is by far the most controversial entry on the leagues’ wish list, though there are others: The leagues want states to require bookmakers to use official data streams, share consumer information and allow the leagues final approval of what types of wagers are allowed on their games.

The leagues justify the fee as part royalty, owed to the league for rights to profit off its games; and part insurance policy, to offset the risk to the league that its games will be corrupted and the money it will spend to make sure they aren’t.

“Sports betting is built on our games,” NBA General Counsel Dan Spillane told a hearing of Connecticut legislators on March 1. “If something goes wrong, if there’s a scandal, something that tarnishes the image of the game, that’s going to be a cost borne by the sports leagues, and less of a cost borne by the operators that offer sports bets.”

A representative from William Hill Plc, one of the world’s biggest gambling companies, made the bookmaker’s case. Las Vegas casinos typically keep about 5 percent of the bets they take, he said, which means the NBA’s proposed 1 percent cut is really a 20 percent cut of revenue.

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