Since the repeal of the Professional and Amateur Sports Protection Act (“PASPA”) by the U.S. Supreme Court, seven states have legalized and launched sports betting. These states include Delaware, New Jersey, Mississippi, West Virginia, Pennsylvania, Rhode Island, and New Mexico, in addition to Nevada which has been operating legally for decades. Each state has tailored their own sports betting regulations to meet their unique market dynamics. While some states have not instituted the most ideal tax rates or structures, these states are adding a new revenue source to their existing gaming and lottery product.
Nearly 30 states have introduced sports betting related language as of the writing of this brief, and others are expected to follow suit in the coming weeks and months as they look either to pass legislation or to study the opportunity that sports betting could provide to their state. Many of these states have already started to hold hearings or are continuing the debate from last year. As these states continue these conversations, they should take two things into consideration. The first is that integrity, first and foremost, is upheld in the legislation and regulations that are established for sports betting. It is never in a fee or royalty that is paid to anyone that is not taking the risk of operating a sports book. Second, there should be no rush to enter the market, as first-to-market status has already been achieved. At this point, it should be about taking the time to get things right by creating a robust, competitive market in a strict regulatory environment.View Full Article Read More