Is Sports Betting Legal? Lawsuit Pending
Written March 24, 2009 by Jack Jones
People gambling on sporting events every single day, despite only a small percentage of that action taking place legally in Las Vegas. It is only legal to bet in four states, but only two currently offer state-sanctioned sports betting. The Professional and Amateur Sports Protection Act, signed in 1992, restricts sports betting to the four states that met the deadline to sign up for it: Nevada, Delaware, Montana, and Oregon.
New Jersey though wants to change that and they have filed a federal lawsuit against the Justice Department that seeks to overtun the ban on sports betting. The reasoning behind the suit is that the law is unconstitutional due to treating four states differently than the other 46.
It’s no secret that Atlantic City casinos are struggling and the state feels that taxing sports bets would allow their state, and every other, to tap a valuable revenue source. State Sen. Raymond Lesniak says that sports betting exists and will continue to go on, so why not support state economies over offshore operations and organized crime? The National Gaming Impact Study Commission estimates that illegal sports betting numbers are as high as $380 billion per year. The state of New Jersey estimates that it could become a $10 billion per year industry for the state, generating $100 million a year in tax revenues.
Professional leagues and amateur governing bodies will oppose a reversal of the ban feeling that legal gambling leads to scandals like the 1919 Black Sox, who threw the World Series, and various other known point-shaving scandals. Just last year an NBA referee was caught up in his own scandal and is sitting in prison due to manipulating games to beat the odds.
Delaware is considering taking advantage of their exemption to allow parlay bets in their state just in time for the upcoming football season. Oregon ended their sports lottery two years ago when they faced a lawsuit from the NBA, and also were not allowed to host any NCAA postseason games. Montana allows bars to host NCAA tournament pools and allows betting on fantasy sports.
If you liked this article, you may also be interested in:
- Delaware Sports Betting Limits
- Sports Betting Money Management: Getting Started
- Sports Betting: Setting Realistic Expectations
- Jack’s Free Sports Picks: 3/3
- Riding Out Sports Betting Losing Streaks
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