Soon, sports fans won’t have to travel to Las Vegas to legally place a bet on sports. Yes, thanks to a ruling by the Supreme Court of the United States, previous legislation that banned sports betting everywhere but the state of Nevada was ruled unconstitutional.
Being that the news is still so fresh, many still have a lot of questions when it comes to what exactly this development means. We’ve answered some of the common inquiries that are out there, from where any additional revenue could go to possible difficulties that may be experienced.
What Does it all Mean?
Previously, federal law prohibited legal sports gambling outside of Nevada and a few select other sites. With the Supreme Court’s 6-3 vote to overrule this law, sports gambling will now be governed by each individual state. Depending on the legislation proposed and potentially passed by each state government, sports gambling will likely look very different in each state, from what type of gambling is legalized to how excess revenue is used.
What are the Pros and Cons of Legalizing it in Each State?
The main benefit to legalizing sports betting is an obvious increase in tax revenue at the state level. There are a variety of ways that states could elect to use this excess revenue, like fixing the roads, putting it toward public education or a variety of other projects. With revenue expected to be in the billions in many states, this could help states carve out a nice little niche in some areas compared to states that choose not to legalize it. What’s more is that it’s estimated that there’s some $60 billion in illegal sports gambling in the United States today. Legalizing sports betting would allow states to capture the revenue they’re not receiving from this pot.
Many of the negatives associated with the action potentially involve logistics. For instance, a few professional sports leagues expressed interest in legalizing sports gambling outside of Las Vegas if they would receive a kickback of the profits. There’s also regulatory and legal framework that likely needs to be ironed out. Additionally, there’s the question of morals and ethics as far as gambling is concerned. With this ruling, sports betting isn’t just legal, but there’s likely to be a lot more attention put on gambling in the media as well to help fuel fan engagement. On the other side of things, professional sports commissioners are already expressing concern over the potential of the ruling impacting the integrity of sports in a negative way. More on this later.
How Will the Additional Tax Revenue Be Used?
Like we noted above, that’s up to each state that passes some sort of legislation legalizing it. For instance, according to an article in the Detroit Free Press, Michigan representatives were already pondering how it could go to support public education or to help fix the mitten state’s notoriously terrible roads.
How Soon Could Sports Gambling be Legalized in Each State?
It depends on how quickly each state government gets to work. For instance, New Jersey has been prepping for this ruling for a while now, so they’re likely ahead of the game in getting something passed. Generally speaking, expect legislation to take about one year to take effect once it is voted on in most states.
Will This Hurt Vegas?
Probably not. Las Vegas isn’t just a town that’s all about gambling anymore. In fact, chances are you don’t have to drive very far to get to a casino near your home today. While it’s true that sports gambling was something previously exclusive to Las Vegas (and Nevada), the city has done a great job of diversifying itself and its entertainment options over the years. From craft breweries to outdoor adventure to family-friendly entertainment to its new NHL franchise, Vegas is still a destination, even if it’s not exclusively tied to gambling anymore.
What Does the NCAA Think?
It’s no secret that the NCAA has always opposed this legalization. Why? Because unlike pro players, NCAA athletes aren’t paid. The worry is that it’ll be easy for people to convince star college players to throw a game for a share of their winnings in exchange. That’s where this ruling could get sticky.
Regards,
Ethan Warrick
Editor
Wealth Authority
