After so many years and all the turbulent times in the uncertain online sports betting industry, an unprecedented decision has finally been made on May 14th 2018. The US Supreme court handed down a decision to allow sport betting and let each state manage their own process and how it will all unfold. The court, in a 6-3 ruling, struck down a federal law that required states to ban gambling on the outcome of sporting events. While Nevada, New Jersey and Delaware are already on the online betting space, now with a legal ruling more states will follow suite one they see what their neighboring states will do.
The experts say it will be another year before anything will really happen throughout all the states. The obvious benefits to each state will be the tax incentives that will go to all the states in revenue. As most experts know the actual 1961 Wire Act was the original ban on phone betting across state lines making it difficult for any bookies to expand and thus making it an underground industry. Then there was (PASP) Professional and Amateur Sports Protection Act was highly unusual as It did not ban sports gambling nationwide as a matter of federal law, but it said the states were not allowed to permit it. But one state Nevada was grandfathered in when the law was passed in 1992.
Back in 2006 The UIGEA was passed and signed by George Bush prohibiting gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law. They put the pressure on the banking system. Now each state is free to pass a law that legalizes betting on sporting events. It is predicted that seven states will move immediately to allow sports betting.
What was behind this and now why? Well, it was actually the state of New Jersey and Governor Chris Christie who led the charge to the Supreme Court and he came out a winner for his state, and now all the other states will be benefiting from his persistence. New Jersey's current governor, Phil Murphy, said he was "thrilled" by the ruling and would work with state lawmakers to enact a law authorizing sports betting "in the very near future." In the Supreme Court, writing for the majority, Justice Samuel Alito said the problem with the federal law is that "state legislatures are put under the direct control of Congress, and more direct affront to state sovereignty is not easy to imagine," he wrote.
The income from taxing sports betting is going to be quite significant according to estimates, and the American Gaming Association estimated that Americans would wager $10 billion on this year's NCAA men's basketball tournament alone, with just 3 percent of the bets placed legally through Nevada. Now imagine more state allowing sports betting and the tax revenue could be massive, especially in such states as California and Texas. More importantly, for the people, the general public now has an open, transparent and responsible market for sports betting. And this is good for everyone, since everyone knows they are going to do it anyway.
It’s expected that legalization will occur state by state and it will come in waves, especially in 2019 as things pick up for their sessions. It’s estimated that the first wave will consist of a handful of states that basically have legal mechanisms in place and were just waiting for a favorable ruling from the high court. These states include the obvious, New Jersey, West Virginia, Delaware and Mississippi. The next involves a slightly larger set of states whose legislatures are still in session and have sports-betting bills pending and those include California, New York, Illinois and Michigan who are among this group that are ready to move ahead.
Alabama:
This could take a while. This state has nothing in the state legislature and basically won’t be looking at any sports betting laws until at least 2019. We’ll see what happens in next year.
Alaska:
Nothing is happening with this state and they have confirmed there isn’t anything coming as of yet. This state would be considered a long shot.
Arizona:
This state seems to be optimistic about the ruling but doesn’t have anything happening. Governor Doug Ducey called the Supreme Court's decision "positive news" and referred to the Arizona Tribal-State Gaming Compact, which governs betting on Native American land, as a potential route to broader legalization. So there is hope here.
Arkansas:
At this point in time, the state has not considered any sports gambling legislation, and governor Asa Hutchinson said he is reviewing the Supreme Court's decision and "we will be monitoring this closely." This state could be considered warm and we’ll have to see in 2019.
California:
This state has been struggling to pass a poker bill for years. But now they see sports as new fertile ground to take advantage of the ruling and tax the industry. It was the State Assemblymember Adam Gray who introduced a constitutional amendment on this subject last year, and he said in a statement May 14 that it is "time to bring this multibillion-dollar industry out of the shadows" and regulate sports wagering like every other form of gambling in the state. We could see something from this state even before 2019. With over 40 million people...they are like their own country.
Colorado:
They seem to be undecided at this point, stating that they will be looking at both the good points and the bad points, such as gambling addiction. Like they say, it’s going to come down to the vote of the people.
Connecticut:
This state seems positive and has already showed interest in legalizing sports betting. Gov. Dannel Malloy issued a statement that said he is prepared to call the General Assembly into a special session to consider legalizing sports betting in the state.
Delaware:
This state already offers online gaming in the state and now they turn up the volume on allowing sports betting as stated by the governor. Get ready as Delaware would launch "a full-scale sports gaming operation" on June 5, making it the first new state to legalize sports gambling in the wake of the Supreme Court's decision.
Florida:
This state is a little more complicated and not sure where they will end up, especially with casino expansions going on now. This is a wait and see case.
Georgia:
Nothing going on here and could take years to see anything happen with sports betting.
Hawaii:
This state is going back to the drawing board on this one, stating that a commission also would determine if gaming would be feasible and what form of gaming would be most appropriate for the state.
Idaho:
The state loves the horse betting, but doesn’t see overall sports betting going anywhere.
Illinois:
There is some real hope in this state with the new announcement as they currently have several bills active, including one that would authorize sports betting in the state to occur with licensees under the Illinois Horse Racing Act of 1975. We could see this state move quickly.
Indiana:
This state is very happy with the decision and they said you might see something happen in 2019 and bills have been submitted over the last few years.
Iowa:
This state has said, given the new decision, it’s time to explore options in the legislature on sports betting.
Kansas:
They have given the new sports betting laws a two thumbs up stating "This is the trigger," Rep. Jan Kessinger told a newspaper, "the catalyst for Kansas to be able to put together a good sports betting bill." This state is one to watch.
Kentucky:
The state that is known for horse racing (Kentucky Derby) and benefited when horse racing got a carve out in the 2006 UIGEA is surprisingly lukewarm about the change in the sportsbetting law. Only to say that "it’s way too early to tell" what policy the state will adopt on the issue.
Louisiana:
No laughing matter for this state who has been trying to pass a sports betting law in the legislature thinking they are behind the time with the Sen. Danny Martiny saying at one point that "we're the laughingstock of the country." We’ll likely see something serious come out of this state soon.
Maine:
This state has explicitly stated that it’s simply too early to tell. They aren’t considering anything right now, but never say never now.
Maryland:
Bills that would have put sports betting to a referendum vote this November did not get through the legislature. Now things have changed and surely they will take another look in 2019.
Massachusetts:
Get real comfortable, this could take a while for this state to decide what to do. Lawmakers will have to have a debate and ultimately pass such legislation, indicating that this could be a lengthy process.
Michigan:
There are currently eight bills that would expand gambling, including several that would legalize sports betting and wagers on fantasy sports. We’ll likely see something soon from this state now that the times have changed and doors are opening on a federal level.
Minnesota:
Even before May 18th, this state was ready go and was already preparing for a positive decision from the judges. Rep. Pat Garofalo has publicly stumped for Minnesota to work under the assumption that sports betting will be legalized, prior to the Supreme Court's decision. They could be one of the first states to have something in can.
Mississippi:
Not a moment too soon, this state was already out of the gate and into the first turn. Get ready to place your bets. Gambling officials in the state have said casinos could be up and running with betting on professional and college sports within 45 days of the court's ruling. Not only that, but on May 17, Mississippi took a sizable step in that direction, as its state gaming commission issued proposed rules that would govern sports betting.
Missouri:
Another state already heading into the first turn. Five bills related to sports gambling bills had been introduced in the state legislature even before May 18th. This means it’s back to the drawing board. Let’s see what happens in 2019.
Montana:
In Big Sky country, some forms of sports gambling are already legal in Montana and that includes fantasy sports leagues and pools. Hang on to your saddle, let’s see what they do in 2019.
Nebraska:
Even with the change in sports betting laws, this state still does not see anything happening in the near future. Back to the stone age for them.
Nevada:
They already allow sports betting, so no news there. The question is, how many states will be calling them for advice on how to draft up laws, rules and regulations. This state could make millions in consulting fees.
New Hampshire:
"Legalized sports betting in New Hampshire? I’ll give it 3-1." as stated by their Governor. This could take a while and bets are off right now with those odds.
New Jersey:
Good work New Jersey, you took a long shot and won. The state’s law, signed by then-Gov. Chris Christie in 2014, was the basis for the legal battle that culminated in the Supreme Court's ruling. Now the question is, will they become the Silicon Valley of the American online gaming industry?
New Mexico:
No comment here. They could be trying to figure this one out. See you in 2024 if we’re lucky!
New York:
This state is in no rush to move forward with Senator Coumo only stating “We’ll do an economic analysis and a legal analysis, but nothing’s going to happen this year because there’s literally just a number of days left in the legislative session and this would be a very big issue to tackle," At least he’s using the right terminology for sports betting which is a good sign. No pun intended.
North Carolina:
The state has not recently considered any sports gambling legislation and even if they do, it will be really slow. See you in 2024 at the earliest.
North Dakota:
Friends of New Jersey and in favour of sports betting. Gov. Doug Burgum was among the state governors who signed an amicus brief in support of New Jersey's case. We’re sure to see something from this state in the not too distant future.
Ohio:
Even though they do have casinos, there is no real rush to do anything related to sports betting legislation. See you in 2019 or 2024 and beyond.
Oklahoma:
There are some signs of life in this state. The Oklahoma legislature was, at one point in its most recent session, considering language that would legalize sports betting in the state. Now they are focusing on casinos. So sports will most likely have to wait a while. See you in 2019.
Oregon:
They like sports betting in this coastal state...but wait a minute. The state, via the Oregon Lottery, was offering its "Sports Action" NFL parlay game before the enactment of the law that was struck down May 14. Looks like they need to figure things out sometime in 2019, just what to do.
Pennsylvania:
Way ahead of the game and in 2017, the state passed a law authorizing sports betting in the state if federal law allowed states to regulate the activity. But this state sounds like they are going to be greedy about the whole thing. If you’re an operator, get ready to shell out $10 million dollars and pay 34% tax just to play in the state. Good Luck and hope they have deep pockets.
Rhode Island:
This state was in the car and heading down the sport betting legalization race track even before the green flag was waved. Gov. Gina Raimondo even proactively included sports gambling revenues in the state's budget for the upcoming fiscal year, more than a month before the court's decision. We’ll likely see something from them soon.
South Carolina:
This state could take a while and even the best salesman in the state will needed on the floor of the state legislature. Senate Majority Leader Shane Massey said, bringing sports gambling to South Carolina will be a "tough sell." Maybe one day.
South Dakota:
Nothing to announce here. See you in 2019 or even 2024 with the new administration in charge.
Tennessee:
Still reviewing the Supreme Court’s decision. State Sen. Brian Kelsey wrote on Twitter on May 15 that he plans to introduce legislation to allow sports betting in Tennessee. They could be one of the first out of the gate. Let’s see what place they come in this year and in 2019.
Texas:
Don’t mess with Texas. This state "historically hasn't been favorable toward gambling expansion," Grove said. "It's not really a gambling state." Don’t hold your breath, but you never know.
Utah:
No way. It does not look like sports gambling is coming to Utah anytime soon. Back to the stone age.
Vermont:
They said they heard the news, but likely won’t do anything, anytime soon.
Virginia:
Yes, they know what happend. “We're reviewing the ruling and would review any legislation should the General Assembly decide to take up the matter.” See you in 2019 or 2020.
Washington State:
Yes, there is a strong possibility that we’ll see something from this state. The Washington State Gambling Commission said in a statement that legalizing sports gambling would require a vote from the state legislature — "most likely, a 60 percent majority." Besides, they legalized marijuana, so you know they are a liberal state. Our bet is that we see something soon.
West Virginia:
This state gave the new sports betting decision a two thumbs up and we’ll likely see something from them really soon. After all, they have licensed casinos.
Wyoming:
This state does not sound interested in allowing the people to make up their own minds even if the Supreme court handed down their decision. The state has not recently considered any sports gambling legislation. No comment. See you one day….maybe?
