The Supreme Court of the United States just blew the lid off the sports world on Monday when it ruled that the Professional and Amateur Sports Protection Act (PASPA) is unconstitutional. The PASPA law was passed in 1992 and limited sporting betting to Nevada and on a limited basis to Montana, Deleware, and Oregon who already had some sports gambling set up through their lotteries.
“The Supremes” ruled 6-3 saying it is up to the states to decide if they want to allow their residents to be able to wager on sporting events. What they really said, is it is up to the states to decide if they want to put an end to the flood of cash that goes to Nevada and get a piece of the action back in the form of taxes. Legalized sports gambling at the state level could also “take a bite out of crime” hurting the illegal underground gambling operations.
The potential influx of tax income from sports betting could eclipse the present revenue received from the lottery, marijuana, Indian casinos, and horse racing combined. It really could be the tax windfall many states have trying to create for many years.
Could there be abuses?
Of course, there will be abuses. There will be people who gamble wager too much. There will be people who will go bankrupt and lose their homes. Families will fall apart. But, this is happening now except the money is flowing into the state of Nevada or into the hands of criminals.
The majority of people will participate with no problem and will enjoy the opportunity to test their skill. A few people will become “super rich”. Even if you do not like sports and will not bet on a game, you will benefit as newfound tax revenue that flows in the state.
Pro sports teams are not happy
The major professional sports organizations are not happy. Why? Because there is about to be a “boatload of cash” enter the sports market and at the moment, they are completely out of the loop when it comes to getting their hands on what could potentially be billions of dollars.
Major League Baseball and the National Basketball Association have proposed the concept of an integrity fee where one-percent of bets would go to the leagues to help combat point-shaving and other illegal gambling corruption. A little of that one-percent might also wind up in the team’s coffers.
According to an expert quoted in USA Today, that one-percent take would really represent a 20-percent income grab by the pro teams. The gaming expert stated most sports book operations keep only five-percent of the revenue they take in from gamblers.
The bottom line is that for now all of the teams – pro, college, and amateur – are going to find themselves out in the cold when it comes to sports gambling revenue. The only way they are going to be able to wedge their way in is to find a legal loophole or to get Congress to sponsor legislation mandating states to cut them in on the profits.
If you live in California, don’t get too excited
The current estimate is that it will take up to five years for the Golden State to put a sports betting plan into place. Why will it take so long? Politics – plain and simple is what will delay the start of wagering in California. How should the money be used? What should the age limits be? Where should betting be allowed to take place? Should state income tax be collected on the winnings?
As you can see, it will be a real political donnybrook.
We will be sharpening our skills
In the meantime, we at SportsRadioService.com will be sharpening our skills in preparation for giving you the best information available to assist you in making your wagering decisions when you can finally lay your money down on your favorite team.