Legalizing Sports Wagers: A sure bet with a Silver lining
Criminals! We’re all criminals. Who hasn't placed the friendly wager on the Super Bowl just to make it more interesting? And, how about filling in that office pool tournament bracket for the NCAA Basketball Tournament? That’s right, unless you live in Nevada, Delaware, Oregon, or Montana you have illegally placed a sports wager according to the Professional and Amateur Sports Protection (Bradley) Act of 1992. It appears we have a ineffectual, conflicting law on our hands. But, what can be done?
New Jersey Governor Chris Christie and the California legislature are challenging the federal ban on sport betting. Originally, Christie denied a bill passed by the New Jersey legislature, but has since issued a directive allowing sports betting at New Jersey racetracks and Atlantic City casinos. California’s legislation is still awaiting approval from their Senate.
With state lotteries, casinos, or some form of commercialized gambling in all states except Utah and Hawaii, why would sports gambling be “off the books”? The most popular argument is that sports gambling would effect the integrity of sporting events and decrease their popularity. However, gambling is already taking place (in the four states mentioned earlier) and has had no significant effect on sporting outcomes.
Speaking to the popularity of the sport: I normally would not watch a first round NCAA Tournament game between Butler and Bucknell. However, if I have money riding on that pick for an office pool tournament bracket then I will pay much more attention to that game than I would without the wager. The bottom line is sport gambling does not adversely affect the popularity of the sports.
Just ask NBA Commissioner Adam Silver who recently advocated sports betting. He says, “If you have a gentleman’s bet or a small wager on any kind of sports contest, it makes you that much more engaged in it. That’s where we’re going to see it pay dividends.” With support from the commissioner of one of the four major sports leagues there may be a viable push for legalization of sport wagering.
One could only hope the other commissioners see the advantages of sport betting. With the NHL fighting off declining attendances and struggling popularity, NHL Commissioner Gary Bettman would be wise to join Silver in improving the odds for sport gambling.
After recent support from Adam Silver, two New Jersey lawmakers have recently made a proposal that would create a 0.25% fee on all sports wagers to be paid directly to the sports leagues. The proposal letter states, “While we strongly support the legalization of sports betting in New Jersey and the economic benefits it will bring to Atlantic City, we are cognizant that sports leagues like the NBA need the necessary resources to protect the integrity and fairness of games.”
If the federal government repeals the Bradley Act and lifts the ban on sports betting, we are likely to see some other forms of taxes imposed on sports betting, as well.
Legalized sports betting means increased revenues for sports leagues, more funding for government, and increased interest in sports, sounds like a “sure bet” to me.
Background image from sports-economics.blogspot.com/
