November 13, 2018

Delaware, Mississippi, and New Jersey take advantage of sports gambling Supreme Court ruling

2018/10/19 12:35 pm 12:35 pm12:35 pm0 0 comments

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Winter is approaching for northern hemisphere, but tax revenues are in bloom as sports betting springs to life across multiple states. A new cycle of growth is primed to develop in the fertile environment created by the demise of the Federal Government’s long-standing prohibitions against sports betting in 46 American states.

May 14th, 2018 was a huge day for the legalization of sports betting. Regulation of the industry was heavily restricted and under the exclusive control and direction of the United States federal government as legislated by the Professional and Amateur Sports Protection Act of 2002 (PASPA or Bradley Act)

This 25+ year monopoly was overturned in May when PAPSA was found the be in violation of the 10th Amendment and declared unconstitutional by the United States Supreme Court in a decision issued on the case of Murphy, Governor of New Jersey vs. National Collegiate Athletic Association and New Jersey Thoroughbred Horsemen’s Association, Inc. vs. National Collegiate Athletic Association

The 6-3 Ruling returned control and regulation of sports betting to the individual states, spurring a flurry of activity and legislation by multiple states seeking to exercise those rights and lay claim to their piece of an industry that has been estimated to be worth as much as USD 150 Billion/yr.

States Offering New Sports Wagering Following PAPSA Downfall

As of the writing of this article 5 states have already begun taking new sports wagers in the wake of the changes to the regulation and control of sports betting in the United States. Deleware, New Jersey, Mississippi, West Virginia and New Mexico.

  • Delaware was the first state to act following the repeal of PAPSA, capitalising on being a  “grandfathered” state under PASPA they were able to begin taking single-game wagers without requiring any change in legislation and began taking wagers at 3 state casinos on June 5th, 2018 (Delaware Park Casino, Dover Downs Hotel & Casino, Harrington Raceway & Casino) Latest reports declare revenue generated from sports wagering from June-August to be over 2 Million USD of which the state takes 50%.
  • New Jersey followed closely when they took their first official wager on June 14th, 2018 at Monmouth Park Racetrack. Since June sportsbooks have opened at 8 New Jersey Casinos & Racetracks (Borgata, Resort, Ocean Resort, Monmouth Park, Meadowlands, Harrah’s, Golden Nugget & Bally’s) Online wagering is available through a number of online sportsbooks (888sport, Betstars, Caesars, Draft Kings, FanDuel Sportsbook, playMGM, SugarHouse & William Hill). Latest reports declare the state has earned over 4.1 Million USD since June.

 

  • Mississippi became the 3rd state to begin accepting new sports wagers following the repeal of PAPSA, when it’s 2 MGM owed casinos Beau Rivage and Gold Strike accepted their first bets on August 1st, 2018 quickly followed by Sam’s Town and Horseshoe and IP Casino. Sports wagering in Mississippi is currently restricted to land (and water) based bets only, of the 28 commercial operators 21 are currently operating a sports book (Silverstar and Bok Homa Casino do not) Latest reports declare the state earned around$645,000 USD from sports wagering in August.

 

  • West Virginia became the fourth state to begin accepting new sports wagers following the repeal of PAPSA on August 30th, 2018 when Hollywood Casino opened as a sportsbook at Charles Town Races, followed in mid-September by Fan Duel opening a sportsbook at The Greenbrier Private Resort. Wheeling Island Casino and Mardi Gras Casino are expected to open sports books in the immediate future. At this time sports wagering is only available through those sites listed above and online wagering is not yet in effect although West Virginia legislation already in place does allow for license-holders to offer mobile wagering and the whispers are that it’s just around the corner. The West Virginia Lottery reported $320,000 of taxable revenue in its first weekend of legal sports betting. No further info is available at this time.
  • New Mexico CNN Reports that “On Oct.16, 2018, the Santa Ana Star Casino & Hotel booked its first sports bet in partnership with USBookmaking. Although New Mexico has not passed any new sports betting legislation since the Supreme Court’s decision, the move by the Santa Ana Star Casino & Hotel was apparently made via its gaming compact with the state. According to published reports, bets will not be permitted on games involving the University of New Mexico or New Mexico State University.”

What About the Rest of the United States?

It should be noted that this article only references states that have enacted new sports wagering methods/operations since May of 2018. At the time of writing Pennsylvania and Rhode Island have legislation in place and seem poised to begin accepting bets as early as the end of the month and many others have begun the process of enacting the necessary legislation, but likely won’t do so until at least 2019. While Maryland’s proceeds from gaming soar for some reason they seem to be trailing its neighbors in getting sports wagering up and running. Finally of course, Nevada has had legal betting of all types since as early as 1949.

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