2024 The Associated Press
As gambling on sports proliferates across America, there are record-breaking profits for the betting companies and a tax revenue windfall for state governments. But at the same time the number of people with a gambling disorder is rising. Since a Supreme Court ruling in 2018, legal sports betting has taken off in the U.S. Thirty-eight states have passed laws to allow gambling on sports while another six are considering it. More than two-thirds of American adults (roughly 164 million) now live in a legal sports-betting market.….Story continues…
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Source: Forbes
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In the United States, it was previously illegal under the Professional and Amateur Sports Protection Act of 1992 (PASPA) for states to authorize legal sports betting, hence making it effectively illegal. The states of Delaware, Montana, Nevada, and Oregon—which had pre-existing sports lotteries and sports betting frameworks, were grandfathered in and exempted from the effects of the Act.
PASPA was struck down by the Supreme Court in Murphy v. National Collegiate Athletic Association in 2018, paving the way for other states to legalize sports betting. In May 2020, it was reported that since the Supreme Court’s PASPA decision, over $20 billion had been spent on sports betting in the United States.
As of January 2024, 37 states, Washington, D.C., and the territory of Puerto Rico have operational legalized sports betting, while North Carolina has legalized it though it sports betting operations will begin later in 2024. 30 states, Washington D.C. and Puerto Rico have also legalized online sports betting, though in 8 states that have legalized sports betting, betting can only occur through legal physical sportsbooks.
In the European Union (EU), sports betting legality varies among member states. Generally, the EU does not criminalize sports betting, but requires operators to obtain specific licenses within individual countries. Key directives, such as the Services Directive and consumer protection laws, influence the regulatory landscape. Each EU country sets its rules, impacting online and offline betting. Certain countries have recently updated regulations (such as the GlüStV 2021 in Germany), while the EU works to harmonize diverse laws.
Outside the EU, regions approach sports betting differently. In Asia, some countries allow licensed betting while illegal markets thrive in others. Africa sees a growing industry with varying regulations. Australia boasts a well-regulated betting environment focusing on online and offline options. Latin America, led by countries like Colombia, is embracing regulated online markets. Meanwhile, the Middle East, including nations like Saudi Arabia and the UAE, strictly prohibits all gambling activities, including sports betting, due to cultural and religious reasons.
The positions of the four major American sports leagues (representing American football, baseball, basketball, and ice hockey) have become more complex since their decision to embrace daily fantasy sports (DFS) in 2014, which are described by those within the industry as “almost identical to a casino” in nature. With the contention by critics that such activities blur the lines between gambling and fantasy sports, the endorsement of all four major sports leagues and many individual franchises provided a marked contrast to their positions on betting.
Professional sports leagues updated their positions again on May 14, 2018, when the Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act of 1992 (PASPA). While the National Basketball Association (NBA) was once active in preventing sports betting law relaxation, current NBA Commissioner Adam Silver became the first major sports leader to break from previous administrative opposition to gambling.
In 2014 he stated in a New York Times op-ed, “I believe that sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.” In 2017, with support for legalization growing, he confirmed his belief that “legalized sports betting is inevitable”. Silver released the following statement following the Supreme Court’s overturning of PASPA: “Today’s decision by the Supreme Court opens the door for states to pass laws legalizing sports betting.
We remain in favor of a federal framework that would provide a uniform approach to sports gambling in states that choose to permit it, but we will remain active in ongoing discussions with state legislatures. Regardless of the particulars of any future sports betting law, the integrity of our game remains our highest priority.”
Major League Baseball (MLB) Commissioner Rob Manfred has also advocated the league changing its stance on sports betting, with both Manfred and Silver noting that the scale of illegal sports betting makes opposition to betting meaningless. He also stated a willingness to “try to shape” any future legislation at federal level. This was noted as a marked contrast to former Commissioner of the MLB Bud Selig, with Manfred going beyond tacit approval and stating, “There is this buzz out there in terms of people feeling that there may be an opportunity here for additional legalized sports betting.”
MLB released the following statement when the Supreme Court overturned PASPA: “Today’s decision by the United States Supreme Court will have profound effects on Major League Baseball. As each state considers whether to allow sports betting, we will continue to seek the proper protections for our sport, in partnership with other professional sports. Our most important priority is protecting the integrity of our games.
We will continue to support legislation that creates air-tight coordination and partnerships between the state, the casino operators and the governing bodies in sports toward that goal. In April 2022, league-owned television channel MLB Network launched Pregame Spread, a weekday afternoon show hosted by Matt Vasgersian dedicated to analysis of betting lines and other aspects of sports gambling.
The National Football League (NFL) remains the only sports league to maintain public opposition to sports betting, however critics have noted that with the move of the Oakland Raiders to Las Vegas in 2019, the NFL has positioned itself for legalization, while simultaneously contradicting its long-held position that sports betting in NFL markets would lead to potential match-fixing. Commissioner Roger Goodell agreed with Manfred in a July 2017 seminar that betting on in-game events, as opposed to the outcome of games, was a more palatable form of sports betting.
Like the NBA and MLB, the NFL issued a statement on May 14, 2018. It emphasized the league’s commitment to protecting the integrity of the game: “The NFL’s long-standing and unwavering commitment to protecting the integrity of our game remains absolute.” Moreover, the NFL called on Congress to craft a Federal framework for regulated sports betting. “Congress has long recognized the potential harms posed by sports betting to the integrity of sporting contests and the public confidence in these events.
Given that history, we intend to call on Congress again, this time to enact a core regulatory framework for legalized sports betting.”The National Hockey League (NHL) has not stated a public position for or against sports betting, with Commissioner Gary Bettman noting that they are smaller than the NBA and NFL and less vulnerable to negative issues as a result. The NHL was the first major professional league to place a team in Nevada, when the expansion Vegas Golden Knights took the ice in 2017:
Since then the league has signed sponsorship agreements with William Hill and MGM Resorts International that include betting partnerships and access to in-play data. Other clubs in states with legal sports gambling, such as the New Jersey Devils and Philadelphia Flyers, also have similar sponsorships with bookmakers. Following other US professional sports leagues, the NHL acknowledged the Supreme Court’s PASPA decision with an internal review of its policies.
“The Supreme Court’s decision today paves the way to an entirely different landscape – one in which we have not previously operated. We will review our current practices and policies and decide whether adjustments are needed, and if so, what those adjustments will look like. It’s important to emphasize that the Supreme Court’s decision has no immediate impact on existing League rules relating to sports wagering, and particularly, wagering involving NHL games.”
Major League Soccer (MLS) the top soccer league in the United States and Canada has expressed sports betting as a possible way to gain popularity. Commissioner Don Garber has stated about sports gambling, “We have a project going on now to really dig in deeply and understand it. I’ll join the chorus of saying it’s time to bring it out of the dark ages. We’re doing what we can to figure out how to manage that effectively.”
The Alliance of American Football and XFL have both publicly endorsed gambling on their games, with the AAF securing a partnership with MGM Resorts International and the XFL partnering with DraftKings. The American Gaming Association stated in June 2017, that a coalition will advocate for the repeal of the United States’ sports betting ban. In February 2018, a lobbying document surfaced advocating a new position held by the NBA and MLB – that sports leagues should be financially compensated for betting activity.
The World Baseball Softball Confederation, the international governing body for baseball and softball, has betting rules similar to those of Major League Baseball. Participants in any WBSC-sanctioned event are banned from betting on the following:
Any WBSC competition in which they are participating. Any event in the participant’s sport, even if not directly governed by WBSC. For example: An individual involved with a national baseball team cannot bet on a Major League Baseball game. However, someone involved solely with a national softball team can bet on an MLB game. Any event in any multisport competition in which an individual is participating. For example, an Olympic baseball or softball player cannot bet on any Olympic event taking place at that specific Summer Olympics.
The WBSC statutes define “participant” as any player, team staff member (including coaches/managers), tournament official (such as umpires and official scorers), or anyone in an ownership, executive, or staff role within any entity that organizes or promotes a WBSC-sanctioned event. The betting ban, as in the case of The FA’s rules outlined above, also extends to providing inside information that the tipper could reasonably believe will be used to bet on a WBSC event.
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