At a conference in Washington D.C. on Thursday, the owner of the Washington Capitals and Wizards produced some frank remarks signaling a significant tide turn in the United states of america with respect to sports betting. If we turn to another sport, football, Ted Leonsis produced it sound as if proponents of legalized sports betting are knotted 17-17 midway via the fourth quarter – and just forced a turnover deep in the opponent’s territory.
The conference, “The Future of Sports Gambling in the U.S.,” brought with each other lawmakers, sports lawyers, scholars and representatives for professional sports leagues. They all provided insights concerning the future of sports betting in the U.S. from their respective vantages.
Referring towards the estimated $150 to $400 billion in sports bets produced illegally within the U.S. every year, Leonsis said the culture of sports betting “Is in the underground and we must now vibrant it in to the light. This really is not a matter of timing.” He continued: “This is not a matter of when this will occur. There’s an inevitability right here that we’ll move forward with gambling being part of the overall sports landscape.”
A 1992 federal law known as PASPA (The Professional and Amateur Sports Protection Act), in effect, rendered sports betting illegal within the U.S. outdoors of Nevada with limited exceptions for Delaware, Montana and Oregon. With substantial expenditures on lawyers’ fees, New Jersey has been battling the pro sports leagues, such as the NBA and NHL, for almost a decade to legalize sports wagering. The legal saga has reached the two-minute warning with oral arguments in the case, Christie v NCAA, set for December four in the Supreme Court of the United states. The nine Supreme Court justices will determine on the constitutionality of PASPA having a decision expected within the spring of 2018, possibly earlier.
“The Future of Sports Gambling in the U.S.” was co-hosted by Switzerland-headquartered Sportradar, a global leader in sports betting and integrity solutions, as well as Revolution, a D.C.-based venture capital firm that Leonsis founded in 2005.
Leonsis is definitely an investor in Sportradar along with a member of its board. In 2015, he partnered with Michael Jordan and Mark Cuban, who invested $44 million in the business. Because launching its U.S. branch in 2013, the business has secured partnerships using the NBA, NHL and other leagues. Yes, the same leagues fighting for PASPA and against New Jersey. (More on that right here and next week.)
“Like Wall Street, sports is all about real-time data,” Leonsis said in 2015. “Tens of millions of individuals cannot get sufficient real-time information about players and teams and leagues.”
Now that legal, regulated sports betting within the U.S. is searching like an “inevitability,” per Leonsis, all of that data will become very beneficial to bookmakers, the leagues, and of course, Sportradar. But Leonsis’ investment in sports betting doesn’t delegitimize his estimation from the legal and legislative landscape. It makes him smart.
Sportradar disseminated substantial quotes and notes from conference speakers. Here’s a sample:
From New Jersey Congressman Frank Pallone, Jr. (NJ-6):
“Our legislation – the GAME Act – would permit states to legalize sports betting and on-line gambling in order to regulate the US market. This multi-billion dollar business must be brought out of the shadows.”
Pallone has spoken with stakeholders (e.g., the leagues) regarding the draft legislation and has said that he leagues have told him privately that they’re in favor of legalizing sports betting.
From Dan Spillane, Senior Vice President and Assistant General Counsel for the NBA:
“A federal legislation will help us protect the integrity from the game.”
“We require to use each system we are able to to help shield the integrity of the game.”
“We ought to see catching match fixers as a success instead of a catastrophe.”
We favor a federal framework for consistency factors.”
From Kevin Braig, Esq., of Shumaker, Loop & Kendrick LLP:
Braig noted the leagues have the option, not the obligation, to enforce PASPA. This is one of the biggest peculiarities of the law, and possibly a constitutional violation vis-a-vis the “private nondelegation doctrine,” which basically provides that “Congress cannot delegate regulatory authority to a private entity,” per Dr. Ryan Rodenberg in his amicus brief in Christie v NCAA.
Braig: “There is no doubt in my mind that the odds of New Jersey winning have shortened significantly from becoming a long shot before the SCOTUS decided to take the case.”
From Daniel Wallach, Esq. of Becker & Poliakoff, P.A., who specializes in sports law and penned “How To Legalize Sports Betting” for Deadspin:
“I really believe New Jersey is the favorite in this case and that we will have sports betting for the subsequent NFL season.”
He also outlined three possible outcomes in the case:
Declare PASPA partially unconstitutional. New Jersey would prefer this option because they would have a lot of control. This would initiate Congress in creating a federal framework to avoid chaos. Most likely.
Court will strike PASPA as fully unconstitutional because from the 10th Amendment.
Leaves PASPA as- is.
From Jason Robins, CEO of DraftKings (which might turn out to be a sportsbook…):
“In a regulated business through mobile and on-line you can track transactions. Via tech we can make sure the fans have a positive experience gambling also as police it.”
He added that it is common sense that a regulated marketplace will protect the integrity from the games compared to status quo.
Finally, from Leonsis:
“What are we afraid of? A regulated, transparent method will be needed to engage consumers in an area where they are already spending money. We are not naïve that these are delicate situation and that’s where there is a need for intelligent monitoring of these systems. My belief is that if we have a good partnership we are able to create much more jobs and improve the economy.”