Legalized Sports Betting: Delaware and New Jersey join Nevada in legalizing sports betting

21/06/2018 | Categories: Bookmakers | Published by: AC

Updated: 19/11/2024

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Nevada
Leaving Las Vegas: Sports gambling's legalization outside of Nevada means BILLIONS for states, leagues, and networks- but concerns over corruption and' integrity fees' persist. Delaware and New Jersey both lately legalized athletics gambling. Nevada was previously the only state to offer full-scale legalized sports betting.

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Leagues such as the NBA are pushing for an' integrity fee ,' which they say would be used to police their respective athletics for corruption. Others insure the integrity fee as the leagues' way of get a cut of the action.

Oxford Economics estimates that legalized sports betting could add anywhere from around 60,000 to over 200,000 new jobs and $22 billion to the U.S. GDP

As many as 32 states could legalize some sort of athletics betting within five years

The neighboring states of New Jersey and Delaware have been racing to decriminalize athletics betting in the wake of the United States Supreme Court's recent decision to strike down the Professional and Amateur Sports Protection Act( PASPA ), which banned licensed sports pools in 49 states.

Delaware's first legal sports books opened at a trio of race tracks last week as New Jersey lawmakers were approving a similar measure that Governor Phil Murphy signed into law on Tuesday.

Ultimately as many as 32 states could approve some kind of legalized sports betting within the next five years. But by Thursday morning, merely two states outside of Nevada- Delaware and New Jersey- will have any skin in the game.

That distinction is scarcely a surprise.

Delaware Governor John Carney held a $10 bill he used to place the first bet at Dover Downs Casino on June 5. Delaware is the first state to launch legalized sports betting since the Supreme Court decision, striking down PASPA, which banned licensed athletics pools in 49 states

Delaware, for one, already offered a athletics lottery where fans could parlay several events into one wager; and New Jersey's own history is inextricably linked with gambling: Atlantic City's first casino was built way back in 1978, long before HBO's Tony Soprano was running numbers in Essex County, and President Donald Trump famously dumped billions into three boardwalk casinoes merely to make four separate trip-ups to bankruptcy court.

In fact, it was the Garden State's legal challenge that ultimately resulted the Supreme Court to end PASPA- also known as the Bradley Act after former New Jersey Senator and New York Knicks forward Bill Bradley.

But even if the two Mid-Atlantic states are vying to become the East Coast's Las Vegas, Delaware and New Jersey will struggle to replace The Strip as America's top gambling destination.

Whereas Vegas offers cavernous sports books lined with colossal television screens, plush seating, and full assortment of lavish accommodations, New Jersey and Delaware's sports books are opening at the kind of aging racetracks frequented by local regulars. Atlantic City casinos offer more for tourists, but outside of the Borgata, which is nearly ready to open its own sports book, the others are still racing to build space and set up their new gambling operations.

Atlantic City's Borgata will serve as one of New Jersey's first legal sports books.

Racetrack's like New Jersey's Monmouth Park will be among the state's first legal athletics books

It's in this unglamorous defining where America's somewhat forbidden love of gambling will enter its next chapter.

Yes, many states are sure to follow suit and open their own neighborhood athletics books while more conservative states hold their collective noses. But it's in Delaware and New Jersey where many Americans will first learn what impact legalized sports betting will have away from the Las Vegas strip.

The following is a primer on how the burgeoning industry could affect athletics, the media, and local communities.

SHARING THE SPOILS OF LEGALIZED SPORTS BETTING: WHO STANDS TO CASH IN?

Although Dallas Mavericks owner Mark Cuban bragged that the NBA doubled in value with the Supreme Court's ruling, it may be the entire American economy that stands to gain the most from legalized sports betting.

Delaware, for example, insured $322,135 wagered in its first day of legal sports gamble, according to ESPN, and much of that will be recouped in state and local taxes.

Dallas Mavericks owner Mark Cuban told decriminalize sports gambling doublings the value of NBA franchises and the league

That's only the beginning.

Based on the most likely of nine different scenarios of athletics gaming availability and varying tax rates, Oxford Economics estimated in May of 2017 that the country could add an additional $22.4 billion to U.S. gross domestic product with $8.4 billion in taxes annually being split between state and local governments ($ 3.4 billion) and the federal government ($ 4.9 billion ).

In Nevada alone, sports gambling is a$ 5 billion-a-year industry, most of which comes from the NFL, according to Recode.net.

Best of all, Oxford Economics estimates that legalized sports betting could add anywhere from around 60,000 to over 200,000 new jobs.

‘The municipalities will now have new revenue streams where they can tap into for new projects, improved infrastructure ,' said lawyer Irwin A. Kishner, a partner and executive chairperson at Herrick, who specializes in sports law.

‘There are a multitude of winners here ,' he continued.' It's hard to see who is going to be the biggest winner, but I can give you a list: The leagues, because of fan involvement and increased revenue; the players are arguably going to be winners because the teams are going to have more value and should get more revenue; and the media companies because there will be more interest in the sports.

‘And that's new media, internet, streaming, and so forth.'

Disney stock enjoyed a 2.5 percentage bump in the two days after the Supreme Court's decision, perhaps because investors were betting that that the company's sports arm, ESPN, could dominate the growing market.

The Golden State Warriors swept the Cleveland Cavalier in the NBA Finals, 4-0. Naturally the ratings declined over the course of the series, but legalized sports betting could help to offset that trend by devoting gamblers a reason to tune in. Fantasy sports previously had a similar effect.

Established casino and gambling corporations are already benefiting from the Supreme Court's decision as MGM, Boyd Gaming and Caesars Entertainment all saw their respective stock costs rise after the ruling.

And if the casinoes are happy, the leagues and individual squads are even more so.

Not only do many already have sponsorship deals with casinoes in place, but the legalizing of sports gambling promises to promote their product. Considering as how fantasy athletics injected added interest to even the most inconsequential games, bringing gamblers into the fold can only increase television ratings and the value of those sponsorship agreements.

Oddly enough, leagues like the NFL had been trying to fend off the legalization of athletics gambling for years out of concern that the practice could ultimately corrupt their products.

Now, with the NBA and Major League Baseball resulting the route, the leagues are offering a compromise in what some are calling an' integrity fee'- a proposed 1 percent cut of all fund wagered given to the respective leagues.

Officially, that small percentage would help the leagues protect themselves against any nefarious activity, like Arnold Rothstein's successful plot to fix the 1919 World Series.

Eight members of the Chicago White Sox were accused of hurling the 1919 World Series

Of course, the leagues have been doing this kind of precautionary work for years, so the sudden need for a' 1 percent integrity fee' is curious to say the least.

NHL commissioner Gary Bettman criticized the terminology recently when speaking with reporters before Game 1 of the Stanley Cup Finals, but insisted the major pro sports leagues do deserve compensation for their intellectual property.

‘I'm not sure I buy the term “integrity fee” — I don't worry about the integrity of our players ,' Bettman told.' I think, though, if you're going to apportion for yourself to run a business on our intellectual property and the performance of our athletes and the platform that we put on for our games, we're entitled to be involved in that.'

Gambler Arnold Rothstein is credited with successfully fixing the 1919 World Series

Delaware and New Jersey did not institute an integrity fee, but New York very well could, according to Kishner, who thinks that such a payment is appropriate, even if its name is somewhat misleading.

‘It's not so crazy to let the leagues have a little piece of the action ,' he said.' This is another way you can get into stadia, arenas, it's just another way of everybody playing nice.'

Incidentally, a 1 percent taxation on all money wagered could equate to a 20 percentage share of earnings, according to some estimates, so athletics books are understandably reluctant to agree to the idea.

‘It's also important to remember that athletics betting is a very slim margin business- not even accounting for the expenses associated with house the necessary infrastructure- and can carry a lot of danger ,' told Nevada-based gaming attorney Kate C. Lowenhar-Fisher.

NHL commissioner Gary Bettman does not like the term' integrity fee ,' but does believe that the leagues should be compensated by athletics books for the use of their intellectual property

Some of the biggest winners of legalized sports bettingbwill be websites that aren't yet strictly associated with gambling.

For starters, existing subscription athletics analytic sites such as Pro Football Focus and Baseball Prospectus will offer gamblings an inside edge. Another sports data company, Sportradar, has partnerships with all four major North American team athletics leagues and has already stuck a deal with U.K.-based Sportech to create betting platforms( terminals and other technology) at over 90 U.S. locations.

Then there are the designers of telephone apps, which will effectively put a sports book directly in the pockets of gamblers.( The makers of the apps can accommodate each individual state's respective sports gaming laws with geolocation features that prevent anyone from making illegal wagers, depending on the local jurisdiction)

But it's internet titans like Amazon that may have the most to gain.

Not merely is Amazon starting buy up broadcast rights, such as the English Premiere League's, but the massive corporation could conceivably create its own gambling platforms too.

That means Amazon would profit from gambling-related ad revenue and subscription fees , not to mention anyone who loses a bet.

A newly decriminalize sports gambling marketplace could be worth billions for tech companies like Amazon, which could ultimately offer an internet athletics book. Amazon is also looking to acquire broadcast rights for major sporting events

SOMEBODY'S GOT TO LOSE

The Supreme Court ruling will assuredly affect the estimated $150 billion illegal gambling industry, but it's hard to say just how much. If taxes and fees become too costly for average gamblings, continuing with their neighborhood bookie might be an easier option.

Offshore betting websites have dominated the U.S. marketplace in recent years, albeit illegally, and they too could see a significant drop in revenue.

After all, why would a gambling want to use their charge card to gamble on a website based in the Virgin Islands if they could have a face-to-face transaction with a more accountable athletics book back home?( Incidentally, America's major charge card issuers have not allowed customers to use their services on sports gambling, and according to Bloomberg, that might not change anytime soon).

HBO's' The Sopranos' depicted fictional mobster Tony Soprano( played by the late James Gandolfini) as a waste management consultant who also has some gambling interests

Former Cincinnati Reds All-Star and director Pete Rose admittedly bet on baseball, but he claims he never wagered that his squad would lose. Critics say this does not matter because a director that bet on his own squad might use his bullpen different or adjust his lineup to rest better players on the nights when he did not have money on the line

The leagues have not hesitated to remind lawmakers that their livelihood would be at stake if their respective athletics were to be corrupted, but this problem is hardly new. Between recent match-fixing scandals in tennis, to MLB's lifetime ban of' Hit King' Pete Rose, to Boston College's point shaving scandal in the late 1970 s, each professional sport has been on high alert for any perceived crimes.

There are even monitors who observe betting trends domestically and abroad to pinpoint potential match fixing- findings that will be of significant interest to the NCAA and various minor leagues.

‘Some people argue that the relatively low compensation given to amateur and minor league athletes would construct them more susceptible to corruption ,' told Lowenhar-Fisher.

Because the schools do not pay their athletes, the NCAA is particularly susceptible to corruption, as are minor leagues in which players are often paid less than minimum wage.

However , nobody stands to lose like problem gamblings, many of whom could be put at risk as the vice becomes more readily available.

NCAA president Mark Emmert's insistence on ensuring that student athletes remain unpaid could come back to hurt him. Because the schools do not pay their athletes, the NCAA is particularly susceptible to corruption, as are minor league with poorly paid players

Between two and three percent of Americans meet the criteria for having a gambling problem, according to the National Council on Problem Gambling( NCPG ). Perhaps more frightening, youth who gamble are at two or three times greater danger of having a problem than their peers, and 40 percent of problem gamblers started before the age of 12, so proliferation could have significant consequences.

‘It's not some amazing panacea ,' Kishner said of legalized gamble.' There are real social costs with gambling addiction. It ruins lives. It ruins families. It leads to other kinds of addictive and destructive behaviour including alcoholism. There is a social cost to it.'

WHICH STATES WILL FOLLOW SUIT IN LEGALIZED SPORTS BETTING?

Former New York Yankees managers Joe Torre and Joe Girardi have both been to Albany to lobby on behalf of athletics gaming interests, so New York City could ultimately mirror London as a major metropolis that offers legal athletics books.

Other Eastern states such as Connecticut, which has two major casinoes, and West Virginia could be next in line to legalize sports betting.

Then there is the litany of states that have recently gotten their legislative balls rolling, such as Illinois, California, Massachusetts, and Michigan.

Former Yankees manager Joe Girardi lobbied lawmakers in Albany in an effort to legalize athletics gambling

Joe Torre, another former Yankees manager, did the same. Former New York Yankees managers Joe Girardi and Joe Torre have both lobbied lawmakers in Albany on behalf of legalized sports betting interests

In total, as many as 32 states could offer some form of legalized sports betting within the next five years.

One state, Utah, has an anti-gambling law written into its constitution, so Salt Lake City residents should not hold their breath waiting for a neighborhood athletics book.

The leagues have all stated their preference for Federal framework, which would codify everything into a standardized set of laws.' Lobbying one government instead of 50 surely is easier and less expensive ,' explained Lowenhar-Fisher.

However, the Supreme Court's decision is actually a step in the opposite direction, as it gave the individual states the right to decide the issue for themselves.

According to one ESPN report, there will be a congressional hearing on legalized sports betting later this month, but its not clear what, if anything, could be decided.

One thing is certain: the leagues are not done lobbying for a percentage of the action.

KNOW YOUR SPORTS GAMBLING TERMS

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Action– what is bet on a game

The point spread– The amount by which one squad is favored by. So if the Patriots are picked to beat the Jets by 10 phases, it will look like this “Patriots-10” or “Jets+10”

ATS-‘ Against the spread ,' meaning' against the point spread.'So if the Patriots were picked to beat the Jets by 10, and won by 14, they would be 1-0 ATS. If the Jets lost by merely 9, then the Patriots have an 0-1 record ATS.

Even money– Even odds, so if you bet$ 5, you would stand to get $10 back if you win or$ 0 if you lose.

Futures bet– A long-term bet usually aimed at predicting a champion

Handicapper– Someone who attempts to predict a winner of an event

Handle– The total amount wagered on a contest

Hedging– Just like in the stock market, gamblings can take gambles to off-set hazards of another wager.

Vig– The commission a bookmaker earns

Moneyline– A gamble in which your team only has to win in order for you to receive a payout. The spread is not considered for a moneyline wager. However, the payout for betting on a favorite is significantly lower than correctly picking an underdog. If the San Francisco Giant are favorited to beat the Miami Marlins, and ‘- 175' appears on the moneyline, that means it would take a gamble of $175 to earn a $100 profit. If ‘+ 145' appears next to the Marlins on the moneyline, that means a bet of $100 would garner a $145 profit.

Over/ under– Typically used to bet on the final score of a game. If the over/ under of a Heat-Magic game is set at 200, and Miami wins 100-98, then whomever wagered on the under would be victorious.

Prop bet– A' proposition gamble' is an exotic wager that typically involves a very specific set of circumstances. Betting whether or not LeBron James will score 40 or more points in a particular game would be a prop wager. Such wagers might become heavily scrutinized as legalized sports betting happens across the country because prop bets do create opportunities for pervert gamblers.

Pick'em– A game with no favorite

Parlay– A single wager on several outcomes. Typically parlays are more difficult to win, but offer higher payouts.

Sources: dailymail.co.uk