Category Archives: Sports Betting

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.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


March Madness Betting Leads to Billions in Illegal Gambling, Poses risks for Problem Gamblers, and Costs Billions in Lost Work Place Productivity

Casino Watch Focus has reported on the ongoing problems that come with the NCAA March Madness tournament each year. Millions is lost to employers through a decline in work place productivity and people continue to gamble away money at unprecedented rates. Most of this gambling is illegal and this year the trend continues. The NCAA remains steadfast on its objection to gambling on the Tournament. They not only understand the hardships it places on addicted gamblers that can’t control the sheer volume of risk and loss the can suffer, but they also understand the impact to the integrity of the games at play. ESPN reports:

The $10.4 billion expected to be bet on the tournament includes popular office pools and is up 13 percent from last year’s tournament, the AGA says. Only a small fraction of the money bet on the tournament, around 3 percent, is believed to be wagered legally in the United States. The bulk of the remaining $10.1 billion is placed with offshore sportsbooks and local bookmakers, according to the AGA, which represents the U.S. casino industry.

While gambling on the tournament grows, the NCAA remains opposed to all forms of sports betting — legal and otherwise — and believes it has the potential to undermine the integrity of the games and negatively impact the welfare of student-athletes.

The legality of such gambling continues to be a prominent issue this time of year as many people view office pools as harmless fun. Unfortunately, it’s anything but and its almost always illegal gambling. ESPN explains:

“Generally, if the office pool charges a fee for entering the pool and awards prizes to the winner(s), then there is a serious question as to its legality. Some states exempt small pools from their gambling laws and regulations,” said Washington, D.C.-based attorney Steven Eichorn of Ifrah Law.

Sports betting is currently legal in only a handful of states, with Nevada the only state permitted to offer single-game wagering, the most popular form. The Nevada Gaming Control Board does not track the amount bet on the NCAA tournament separately, and combines the NBA and college basketball into one “basketball” category on its monthly revenue reports. The spike in action from March Madness is easy to see, though.

Past the issues of legality, it’s especially problematic for those with gambling addiction. The NCAA tournament structure is particularly unique, as the gambling isn’t set on one game, as is the case with the Super Bowl. For a problem gambler, regardless of today’s outcome, there is another game coming up next, and a new chance to chase the action. Michael Rosen, counselor and VP of Clinical Services with the Center for Addiction Treatment explains:

For the person with a gambling problem, there’s literally always another tomorrow. “The problem gambler’s brain is producing ‘feel-good’ chemicals at each bet, even if he’s not winning,” Rosen said.

Why then do people who struggle with compulsive gambling keep trying to recapture their losses? For example, two of the top four-seeded teams in the tournament, Xavier and Virginia, were upset during the first two rounds. Virginia’s loss to the University of Maryland Baltimore County marked the first time in tournament history that a No. 16 seeded-team defeated a No. 1 seed.

“He has become conditioned to (gamble),” is how Rosen explained chronic betting even after losses. “It is simply the next part of the sequence that occurs without much conscious thought. A bet is made, and then another and then another.”

While most people cut their losses in the office pool, problem gamblers often aren’t aware of the dangers they face. Rosen advises to keep an eye on friends and family members who have a history of problems with sports betting. And, yes, he said, it can be an addiction that’s as dangerous as one to drugs and alcohol.

“You might not see physical symptoms,” said Rosen, who then ticked off a list of what to look for: Physical health may begin to deteriorate with increased hypertension, lack of sleep, less eating.

Psychological issues may include increased anxiety, depression, irritability, ruminating obsessive thoughts, and thoughts of suicide. Changes in behavior may include an increased use of alcohol or other drugs, tendencies to isolate, lying to others, experiencing angry outbursts, and reckless driving.

Clearly, March Madness has a dark side. And the gambling temptations keep on coming.

In terms of cost to employers, the Charlotte Observer points to a Chicago-based study which says as much as $1.7 billion will be lost by employers in productivity, which breaks down to $109 million lost for every 10 minutes spent following the tournament. They believe there will be over 37 million workers participating in pools with 1.5 million watching games and results online from their desks. ESPN recently quantify the financial impact of just the gambling:

On the low end, the FBI estimated in 2013 that $2.6 billion was bet illegally on the tournament. On the high end, veteran bookmakers estimate the number to be anywhere from $12 billion to $26 billion. Friendly bracket pools are everywhere, with most everyone betting on the NCAA tournament in some form. But there are bets, and then there are bets. You don’t get to $26 billion with $20-per-sheet office pools.

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Super Bowl 52 – More Gambling than all Seven World Series Games Combined: Harmless Fun?

Casino Watch Focus has reported on the significant amount of gambling on the Super Bowl each year, and each year the impact seems to grow. This year the amount of total gambling on the Super Bowl 52 s estimated to be around $4.5 million. This year sees the New England Patriots face off against the Philadelphia Eagles, and When the Eagles play, the amount of gambling spikes significantly. An online source explains:

Each and every year, sportsbooks drool over the prospects of profits stemming from Super Bowl gambling. There will be more money bet on Super Bowl 52 than any of the seven games of the World Series, and all of the combined games in the Stanley Cup Finals.

It’s the most lucrative day of the season for most sportsbooks, and every year, the total amount wagered on the big game increases. How much will be bet on the 2018 Super Bowl?

Each year, the American Gaming Association releases its prediction of how much money will be wagered on the Super Bowl. Super Bowl 51 generated an estimated $4.7 billion in wagers, though the mass majority of that was done illegally through offshore websites and local bookies. BetDSI Sportsbook has lined the AGA’s estimate at $4.5 billion bet on the 2018 Super Bowl.

The last time the Eagles were in the Super Bowl, there was a 10.5 percent jump in the amount wagered in Las Vegas from 2004 ($81.2 million) to 2005 ($90.8 million). If we see a 10 percent jump again this year, Las Vegas could be looking at a handle as high as $152 million alongside a total number gambled hovering around $4.6 billion.

Many think gambling on the Super Bowl is harmless fun, and for some, who do it legally, it could be that simple. However, the consequences for others can be extreme. A Fox News affiliate has reported that Super Bowl night is not only the biggest night for gamblers, but it also sees the most suicides as well. For those that don’t suffer the ultimate fate, they can still lose enough to cause irreparable harm to their finances and family. Fox Now online explains:

“Super Bowl is probably one of the biggest gambling days of the year,” said Gambling Addiction Counselor, Jim Harrison [a gambling counselor in Milwaukee.] He says the wagers placed on the Super Bowl are often not taken as seriously and can be seen as harmless and fun. “In reality it is betting, it is gambling,” said Harrison. Those compulsive gamblers see it as a day to make up for other sports losses this season.

Harrison says it’s not harmless at all for those with an addiction — betting is done with bookies and online and it could bring losses. “If it causes family problems, certainly financial problems,” said Harrison. “I’ve had clients who have literally lost over $300,000 gambling,” said Harrison. The Super Bowl can bring losses to those betting on it all, and it can be tempting to those dealing with gambling addition.

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UPDATE: The Supreme Court Heard Oral Arguments in the New Jersey Sports Betting Case and Experts think the Court Might Side with Gambling Expansion

Casino Watch Focus has reported on the ongoing events surrounding legalized state sports gambling as it pertains to New Jersey. For years they have tried and failed to legalize sports betting in their state. The issue has finally made it to the Supreme Court and the sides have been fairly well documented, with New Jersey and gambling operators seeking legalized sports betting and the major sports organizations such as the NCAA, NFL, MLB, NBA and NHL and the Trump Administration’s Department of Justice backing existing Federal law which prohibits sports betting outside of Las Vegas. Oral arguments have now been heard and early statements by a majority of the justices seem to indicate they might side with New Jersey. Forbes reports:

Proponents of legalized sports betting had to be feeling confident after last Monday’s oral argument in/NCAA v. Christie/ — the so-called New Jersey sports betting case, in which leagues including the NFL, the NBA and Major League Baseball are seeking to prevent the state from permitting such gambling. The general consensus among those in attendance was that the Supreme Court appears poised to invalidate the Professional and Amateur Sports Protection Act (PASPA), the 1992 federal law that bans states from authorizing or licensing sports betting.

By my count, at least five justices — John Roberts, Anthony Kennedy, Neil Gorsuch, Samuel Alito and, surprisingly, Stephen Breyer (one of the court’s more liberal members) — indicated that they believed PASPA violates the 10th Amendment’s anti-commandeering principle, which forbids the federal government from commanding the states to implement federal laws or policies that would interfere with state sovereignty.

From the tenor of the oral argument, with only Justices Elena Kagan, Sonia Sotomayor and Ruth Bader Ginsburg appearing to credit the leagues’ argument that PASPA is a straightforward preemption law, one could easily envision a decisive victory for New Jersey. A 6-3 margin sounds about right — at least that’s my prediction.

Additional factors seem to indicate a shocking reversal from where the issue was just months ago, following 6 failed attempts by New Jersey. ROI provides the additional analysis:

“When you look at recent history on U.S. Supreme Court rulings, 83 percent show a reversal of the lower court opinion; and in the past five years, that figure is still over 70 percent,” Wallach said.

“So, all of the metrics show a change is afoot. What that change looks like, we’ll have to wait and see. It might not be whether New Jersey prevails on its partial repeal, but how sweeping of a decision in New Jersey’s favor it turns out to be.”

Court followers suggest the decision would come in spring or later. Just months ago, New Jersey and the gaming industry believed it had exhausted all efforts to win this case. But, to the surprise of many, on June 27 the Supreme Court decided it would take the case. “Look at where this case was just five months ago,” Wallach said. “It wasn’t even being mentioned. Now it’s going to the Supreme Court. New Jersey has lost six battles on this case in the lower courts. But this is the one that counts.

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