The New Mexico Lottery Board on Tuesday voted to approve a game linked with the outcome of sporting events, the Santa Fe New Mexican reported. The game will mark the second venture for an entity in New Mexico to offer sports betting after the Supreme Court struck down the Professional and Amateur Sports Protection Act in May. Just last month, the tribal-owned Santa Ana Star Casino & Hotel, with USBookmaking as its operator, launched a sportsbook.
Though details of the new lottery game were not made public, it’s likely it will involve parlay wagering, similar to Delaware’s sports lottery. In such a game, players must select the winners of at least three sports events and select each one correctly in order to win.
The driving force behind developing a sports-related lottery game is to generate more money for education, which the lottery funds. Lottery CEO David Barden told the Santa Fe New Mexican that the new game could produce $30 million a year, with $9 million to be directed to the lottery’s college tuition assistance program.
This story is the first of two detailing the latest situations on the West Coast. A second installment covering the Mountain States will be posted later this week.
While the blossoming business of sport betting continues to flower or, at least, attempt to flower on the east coast of the U.S., the western states, except Nevada, formerly the only state with full-fledged sports betting, seem to be getting left behind.
To no one’s shock, as the more western states see the revenue being generated in newly opened eastern sports betting markets, such as New Jersey and Delaware, legislators are growing increasingly eager to access, for their own jurisdictions, the tax dollars that sports betting can generate.
Some states will require a change in gambling laws, others may need a state constitutional amendment by which voters could decide the issue.
California, Oregon and Washington Sports Betting Legalization: Where Things Stand And Where They May Be Going.
Pala Casino Resort and Spa in southern California
California
Native Americans control gambling in California and will have a large impact as to if and when sports betting becomes legal in the Golden State.
Tribes pay a hefty fee to the state in exchange for the privilege of exclusively operating numerous casinos — some rivaling Las Vegas casino/resorts in opulence and others not nearly as swanky. Industry observers believe there will be immense contention (a real donnybrook) as tribal casinos, card clubs and racetracks engage in a expensive political scuffle over the rights to the millions of dollars of revenue sports gambling would generate.
“You can expect lots of money to be spent,” Jennifer Roberts, a former gaming lawyer and associate director of the International Center for Gaming Regulation at the University of Nevada in Las Vegas, told the Los Angeles Times after the Supreme Court ruled that states could now authorize Nevada-style sports betting.
About a year ago, assemblyman Adam Gray (D-Merced) introduced an amendment to the state constitution that would allow sports wagering should the nationwide prohibition be lifted. The bill requires a two-thirds vote in the state legislature to be placed on the ballot. It then would need the support of the majority of voters for passage.
However, California’s tribal casinos believe state law grants them the exclusive right to operate casino-type games, which they say, by definition, includes sports betting. Allowing card clubs and horse tracks to run sports betting operations would violate that exclusivity, they say. California leads the nation with 63 tribes that run gambling operations.
One of the more progressive states in the nation and one with some experience dealing with sports betting, having had some limited sport betting grandfathered under the now-defunct federal ban (PASPA), Oregon is currently exploring how to re-introduce wagering to the state. And it may be able to do so without having to pass any new legislation.
Starting in 1989, Oregon was the home of “Sports Action,” a state-sponsored parlay version of betting on NFL games run by the Oregon Lottery. However, when NBA games were added the menu, the league, now an open and powerful advocate of national sport betting, filed a suit that halted its inclusion. “Sports Action” was abolished in 2007 when the NCAA said it would not hold any NCAA basketball tournament rounds in the state as long as “Sports Action” was in action.
In April before the Supreme Court struck down the federal ban on full-fledged betting outside Nevada, Farshad Allahdadi, Chief Gaming Operations Officer for the Oregon Lottery told Legal Sports Report:
The Oregon State Lottery and its board broad authority to introduce and remove games as it sees fit. Sports betting on a local level — if it is authorized federally — does not need any additional state legislative action. While we’re waiting, on principle Oregon State Lottery is interested in getting back into the sports wagering market.
Following PASPA’s elimination in May, we learned more about those plans. The Lottery is currently working on a mobile app connected to its existing products, while also exploring some sports wagering offerings. “At some point in time, and we’re not sure what that’s going to look like, we will offer games and some sort of sports betting,” said Oregon Lottery Senior Public Affairs Officer Chuck Baumann.
So far, the app is not available and there is no timetable for when it may come. In June, Baumann suggested it could be this summer (ending Sept. 22).
Although Lottery officials do not believe new legislation will be necessary for it to begin offering some sort of sports betting, the legislature may still take up the issue and craft a law calling for a more robust framework for licensure and taxation and such. Although the Oregon legislature is not scheduled to begin its next session until Feb. 1, 2019, as with other states, preparatory work begins after the November election.
Washington
Legal sports betting in Washington is clearly on the back burner.
Sixth Legislative District Senator Michael Baumgartner (R-Spokane) told KIRO radio in June that despite believing it would be a good idea, he doesn’t see sports betting on the table anytime soon for his state.
“I don’t think it’ll happen in the near future — it’s something that I think should happen,” he said. Baumgartner noted that gambling is already popular in Washington through the state’s 29 casinos.
In uncommon frankness regarding Indian gaming, he told KIRO, “The tribal gaming interests really have a lot of political influence in Olympia, so I think if it does happen in Washington State, which I think it eventually will … the tribal gaming interests will probably be a player at the table.”
He’s also concerned, as are other lawmakers in many states, that sports betting would hurt local lottery revenues.
“Eventually somebody is going to want that money (from sports betting), and I think they’ll probably work a deal where they cut the tribes into the agreement,” he said.
Washington has some of the strictest online gambling laws in the nation and playing fantasy sports to win money in Washington remains illegal and a felony. Oddly, the old-fashioned games called “sports pools” in which squares are sold and winners are determined by the score during and after an athletic contest are legal. All entry money for squares sold must be awarded to the winners and the organizer may not withhold a commission, state law stipulates.
Jan. 14, 2019 is the date for the next legislative session in Washington.
The post U.S. Sports Betting in 2018: Timeline of State and Sportsbook Developments appeared first on SportsHandle.
This has been a historic year for legal sports betting in the United States as the long-awaited Supreme Court decision in Murphy v NCAA erased a 26-year-long federal ban on full-fledged sports wagering outside Nevada.
A whole heck of a lot has happened in the first half of 2018 and there’s sure to scores of dominoes yet to fall.
Now that we’re halfway through ’18, so let’s take stock of the key developments that have already occurred. This is not meant to be completely comprehensive but a quick look at most of the many highlights.
Legal Sports Betting in the US in the First Half of 2018: Sportsbooks and States and So Much Happening in Just Six Months
January 5: Scientific Games completes its acquisition of NYX. “NYX ideally positions us to capitalize on the growing online gaming and online sports betting markets,” said Kevin Sheehan, Scientific Games’ President and Chief Executive Officer. January 9: The first piece of U.S. legislation containing the phrase “integrity fee” emerges in House Bill 1325 in Indiana, introduced by Representative Alan Morrison. The bill didn’t advance past the committee stage. January 24: NBA Executive Vice President and Assistant General Counsel Dan Spillane testifies at a hearing on sports betting before a New York State senate committee. “We believe it is reasonable for operators to pay each league 1 percent of the total amount bet on its games” he said. February 4: With Nick Foles under center and the guts to call the play “Philly Special,” the Eagles upset the New England Patriots 41-33 in Super Bowl LII. Many Las Vegas bookmakers took a beating due with the 4.5-point underdog Eagles taking a lot of action, plus a ton of player and scoring props going over.
“We don’t usually lose Super Bowls,” Wynn Las Vegas sportsbook director Johnny Avello said. “Once in a while. The last couple have been tough. Maybe the Patriots won’t be there next year.” February 17 : At the NBA All-Star Weekend, Commissioner Adam Silver was asked a question about sports betting and the so-called integrity fee. “This notion that as the intellectual property creators that we should receive a 1 percent fee seems very fair to me,” Silver says of levying a fee on potential operators. “Call it integrity fee, call it a royalty to the league.” March 2: West Virginia passes the first new law of 2018 to legalize sports wagering. March 3 through remainder of first half of 2018: Hearings and studies on sports wagering occurred in numerous states, including Connecticut, Illinois, Kansas, Maryland, Massachusetts, Missouri, Rhode Island and others. March 30: Shareholders of Pinnacle Entertainment approve a merger with Penn National Gaming. Pinnacle owns 16 casinos in nine states, many of them likely to have the ability to offer sports betting by the end of 2020.
[Also See: Odds Shift in Race for Operator Dominance in Legal U.S. Sports Betting Market] April 2: On April 2 at a hearing in Connecticut, the leagues appear to officially lower the bar for their ask from 1 percent to 0.25 percent. “This fee is lower than we originally asked for,” says Morgan Sword, Senior Vice President League Economics and Operations at Major League Baseball. “In spirit of compromise, we are willing to accept a 0.25% fee.” April 4: The PGA Tour publicly aligns itself with the NBA and MLB on sports betting regulation. April 19: ESPN Chalk reports that MLB and the NBA begin looking to end their respective ownership stakes in DraftKings and FanDuel, in a move believed to be tied to their desire to not have a hand directly in the bookmaking side of sports betting. April 24: The National Indian Gaming Association adopts a resolution in support of legalized sports wagering — under certain circumstances and rules. April 24: Former Mets and Yankees pitcher AL and and former Celtics forward Cedric Maxwell appear in Connecticut capital Hartford, to lobby lawmakers for sports betting legislation favorable to the financial interests of their respective former leagues. May 4: The Vegas Golden Knights just keep on winning and threaten to put a large dent into Las Vegas sportsbooks.
Now the Big Daddy:
May 14: The United States Supreme Court issues its decision in Murphy v NCAA, ruling 7-2 on states rights principles that PASPA is unconstitutional. Justice Samuel Alito writes for the majority:
The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not.
May 14: Utah Senator Orrin Hatch — one PASPA’s co-authors — announces his intention to introduce a bill regulating sports wagering. “We need to ensure there are some federal standards in place to ensure that state regulatory frameworks aren’t a race to the bottom” his office says in a statement. May 14: No longer an open secret, DraftKings announces its intention to move into the sports betting market.
“Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products,” says Jason Robins, CEO and co-founder of DraftKings. “This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement.”
May 18: NIGA says in a statement that “Each Tribal Nation must determine for themselves what the risks and benefits are and decide accordingly. NIGA will continue to serve as an information gathering and information sharing resource for our Member Tribes.”
[Also See: The Indian Gaming Regulatory Act (IGRA) and Sports Betting] May 21, the NFL announces its “core principles” for sports wagering, which made no mention of a fee or royalty, signaling a public break in strategy for monetization of sports wagering. There are rumors that the NFL is pursuing a strategy through Congress, for a new bill with not-yet-known concessions, or possibly carving a pathway through modification of the Wire Act. May 22: DraftKings erects this billboard in New Jersey:
first look: DraftKings wasted no time after SCOTUS ruling in getting billboards up in New Jersey advertising forthcoming sportsbook.
billboards on highway and at train stations say: “WHY SHOULD VEGAS HAVE ALL THE FUN?” and “LEGAL SPORTS BETTING IN JERSEY? YOU BET” pic.twitter.com/vHmxdwWgPJ
— Daniel Roberts (@readDanwrite) May 22, 2018
May 23: Paddy Power Betfair announces its acquisition of FanDuel. May 23: States push to keep federal regulation out of sports betting. May 25: The New Jersey Thoroughbred Horsemen’s Association sues the sports leagues for $139 million for acting in bad faith in blocking the racetrack from offering sports betting in 2014. May 29: MGM Resorts International makes a bet in New York with the purchase of Empire City Casino and Yonkers Raceway. May 30: By now, all of the leagues have released statements and intentions regarding sports betting. June 5: The Post-PASPA sports betting era begins in Delaware — the first state to offer full-fledged wagering outside Nevada. Three state-licensed operators draw a combined $322,135 in bets on Day 1. Governor Jay Carney’s $10 bet on the Phillies — the first in the state — is a winner. June 7: New Jersey’s legislature unanimously passes its bill to legalize sports wagering in the Garden State. Governor Phil Murphy signs it into law on June 11. June 8: Paddy Power Betfair lands a pair of deals to become the sports betting operator for online, mobile and retail sports betting for Meadowlands Racetrack in New Jersey and and Tioga Downs in New York. June 12: Mississippi’s Band of Choctaw Indians announce their intention to move forward with sports betting in time for football season, possibly making it the first tribe to do so. June 14: New Jersey sports betting begins at Monmouth Park in Oceanport, and shortly after at The Borgata in Atlantic City.
Dr. J made the first ever sports bet at Borgata today and we think you’ll like his wager.https://t.co/Rb6Y41xY7L
— NBC Sports Philadelphia (@NBCSPhilly) June 14, 2018
June 15: Pirates president Frank Coonelly tells the Pennsylvania Gaming Control Board (PGCB) in a letter that “revenue collected from sports wagering should be allocated to the maintenance and upkeep of PNC Park…” June 15: The NFL submits a letter to the PGCB in which it agrees with every casino operator that the state’s mammoth licensure fee ($10 million) and tax rate on revenue (36 percent) is prohibitively high and will keep people in the black market. June 16: DraftKings and Resorts Casino in Atlantic City announce they will partner up for sports betting. June 19: ESPN learns that the House Judiciary Committee will hold a hearing on sports betting on or about June 29, when the NFL would testify. It is later postponed. June 20: New York State’s legislative session closes with a dud. No sports betting bill gets passed. June 21: The West Virginia Lottery Commission sets forth its sports betting regulations, and expects that operators will be ready to go by September 1 at the latest. June 21: Mississippi, which previously legalized sports betting, rolls out its regulations and believes its casinos will be ready to go by football season. June 22: Rhode Island legalizes sports wagering. Per the law, the state will get a whopping 51 percent cut. June 26: FanDuel scores a deal to manage sports betting operations at the The Greenbrier Resort in West Virginia. June 29: USA Today reports that it NCAA won’t seek an “integrity fee” or royalty from sports betting. It also tells its member schools regarding sports betting that “they will need to look at their own values and decide” how to proceed.
And on and on and on. Stay tuned for what will be an eventful football season and remainder of 2018.
