At the moment, operators are optimistic that the high tribunal will take in New Jersey’s arguments that the 1992 Professional and Amateur Sports Protection Act (PASPA) violates the U.S. Constitution’s protection of state’s rights.
They hinged their optimism on the reactions of a majority of the SC magistrates after hearing arguments for and against overturning the federal PASPA, which limits single-game sports betting to the state of Nevada.
Sue Schneider of Gaming Law Review believes that at least 21 states are poised to legalize sports betting should the SC strikes down the PASPA Law.
“The law was, at a point in time, in the early 90’s that said, either you legalize it now or forever hold your peace and we will just get into the legal machinations of whether if you feel like this is something that impedes with the State’s rights to allow for that,” Schneider told CalvinAyre.com.
She pointed out that professional sports leagues like the Major League Baseball (MLB) and the National Basketball Association (NBA) are already lobbying in different states to include the so-called 1 percent integrity fee in its proposed sports betting measures.
Schneider said that the one percent integrity fee being pushed by the professional leagues has become quite a concern for gambling operators, particularly the American Gaming Association.
“They are actively lobbying, state-by-state, to try to get one percent of the handle, which actually translates to 20 to 25 percent of the profit margin on operators. So, it is not an insubstantial amount. It is going to be a battle, state-by-state,” Schneider said.
“It is really incumbent on states to look at how they can be able to develop a legal and regulatory structure that will allow for jobs, allow for taxes but still be commercially viable so that the operators can make some money and that the players are protected and it is attractive enough for them,” Schneider concluded.
Sue Schneider is one of the world’s leading experts on the internet gaming industry which she began monitoring in 1995. She is a frequent speaker at international gaming conferences and has testified to the US Senate, the US House of Representatives as well as the National Gambling Impact Study Commission in that country.
Source: GMB / CalvinAyre.com
