USdecision removes prohibition on sports wagering
Through a series of legal challenges led by New Jersey over a period of several years, the US Supreme Court has struck down the federal ban on sports betting, potentially opening up a massive market for the local gaming industry. Sports betting was previously legal only in four out of the 50 US states.
Starting from Monday (14.05), a decision long awaited has been confirmed: the US Supreme Court, based in Washington D.C., has upheld the constitutional complaint of New Jersey by a majority of 7 to 2, declaring the US federal ban on sports betting unconstitutional and invalid. This move paves the way for all 50 states in the US to establish their own sports betting regulations, as opposed to the previous system where only a select few were exempt from the Professional and Amateur Sports Protection Act (PASPA), which had been in place since 1992.
Using the 10th Amendment of the US Constitution as a basis, the Court has effectively given states the autonomy to decide on their own sports gambling laws. In his statement, Chief Justice of the US, Samuel Alito, 68, clarified, "Our job is to interpret the law created by Congress and determine if it aligns with the Constitution. PASPA does not. The legalization of sports betting is a political choice, but it's not ours. Congress can regulate sports betting directly but, if it chooses to do so, each state is free to take the initiative."
Forerunner of the Revolution: New Jersey
New Jersey, the smallest state on the east coast of the US, has been actively pushing for a regulated sports betting market within the state. Since 2012, it has been at the forefront of the push for change. Under former Governor Chris Christie - in office from 2010 to 2018 - New Jersey first filed constitutional complaints to the federal court in Washington.
Over the past several years, Christie has used the argument that illegal sports betting was on the rise. As per estimates by the American Gaming Association (AGA), $150 billion is wagered illegally on sporting events in the US every year. Furthermore, he believes that the federal judiciary should uphold the civil liberties of its citizens and that denying people the right to bet on sports is a violation. In light of this ruling, Christie took to Twitter to share his excitement, stating, "A big day for states' rights and their people's ability to make their own decisions. The people of New Jersey wanted sports betting and the federal government had no authority to stand in their way."
Christie's successor, Governor Phil Murphy (incumbent), is also pleased with the ruling. The former investment banker has expressed his intentions to work with lawmakers as soon as possible to formulate a regulatory framework for sports betting. In turn, the AGA is eager to collaborate with all stakeholders, envisaging a lucrative market that would benefit multiple parties and the economy.
Since the prospect of legal sports betting now looms large over the US, shares in gaming companies are witnessing an upward trend on the London Stock Exchange (LSE):
- GVC Holdings, the owner of Ladbrokes Coral, sees its market value skyrocket by 7.5%.
- William Hill, the British bookmaker with the largest number of sports betting shops in Nevada, records an 11% increase.
- The Irish-British betting giant Paddy Power Betfair enjoys a 12% growth.
888 Holdings, the top-listed company on the LSE, experiences a phenomenal 16% growth, while Caesars Entertainment, the largest US casino-hotel-resort chain, sees a 9% rise. The Las Vegas-based slot machine manufacturer Scientific Games also witnesses a boost of 14% in their shares. These companies are all positioned to take advantage of the new opportunities provided by the fact that sports betting has become a possibility on a much larger scale.
According to a Washington Post poll, 55% of the American population believes the time has come to repeal the federal betting ban.
The same goes for the Canadian poker company owner The Stars Group, which has a 14.3% share. After acquiring British bookmaker SkyBet in April of last year, the Toronto-based public entity became the largest public gaming company in the world with a market value above $4 billion. The group recently anticipated the potential opening of the US sports betting market in their Q1 results presentation.
Despite widespread speculation, it's ultimately up to individual US states to establish suitable regulations. But not everyone is thrilled about this development - representatives from the US sports leagues NBA and NFL express concerns about betting threatening the integrity of their sports, while Utah warns of online gambling dangers. Furthermore, legal experts suggest that PASPA was not carefully executed, but rather "axed."
In other words, things are still "exciting" - to quote Paddy Power Betfair CEO Peter Jackson.
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Source: www.onlinecasinosdeutschland.com
