In common-sense ruling, legal sports betting will exist outside the desert marcus hayes – philly electricity voltage in india


The U.S. Supreme Court on Monday declared unconstitutional the law that prohibited most states from legalizing sports gambling, bringing into light a black market estimated to handle at least $150 billion in bets annually. The law was called the Professional and Amateur Sports Protection Act, and it was sponsored by Sen. Bill Bradley, a basketball star at Princeton and with the Knicks. The bill passed in 1992 with the blessing of the professional leagues eager to safeguard against game-fixing.

It was New Jersey — Bradley’s state — that petitioned the court to hear the case, and it likely will be the first to benefit. Some experts believe that within two weeks, the London-based William Hill sports book could add sports betting to the racetrack at Monmouth Park, N.J. Pennsylvania also has in place a law that could quickly add sports gambling in its casinos and “racinos,” as does West Virginia. Industry experts believe NFL fans in several states will be able to bet on games when the season begins in September.

“This is really our bread-and-butter,” said DraftKings CEO Jason Robins, whose company claims as many as 10 million users. “A lot of our customers report they already bet on sports. We’ll be able to deliver that better than anyone else out there.”

Everybody wants a piece of this action, even the leagues. Each issued pledges Monday to police the “integrity” of their sports, but betting has been legal in the United Kingdom for years and that society has not crumbled. Eagles owner Jeffrey Lurie, Phillies owner John Middleton and Sixers owner Josh Harris, who also owns the New Jersey Devils, all declined to comment on the ruling. But Dallas Mavericks owner Mark Cuban might have spoken for them all when he told CNBC that the value of every major sports franchise doubled Monday.

NBA commissioner Adam Silver has supported legalized betting for almost four years. This winter, in anticipation of a favorable court ruling, he began a campaign to extract a 1 percent “integrity fee” from gross revenues realized from betting on NBA games. Major League Baseball followed suit. That number would likely shrink to around 0.25 percent, since bookmakers generally only make about 5 percent profit.

The next hurdle is determining how the pie gets sliced. Pennsylvania’s existing legislation, signed into law in October, carves out a 36 percent tax rate for state and local coffers, which is prohibitively high, as well as a $10 million licensing fee. West Virginia, for comparison, will tax at 10 percent with a $100,000 licensing fee. Mississippi hasn’t set a number yet, and New Jersey’s current bill would tax 8 percent of gross revenue from casinos and tracks and 12.5 percent from online betting. Nevada taxes at around 7 percent.

Robins, with DraftKings, was extremely concerned with how the laws will be written and how the industry will be regulated because the profit margin is so slim. He believes he can help regulators shape workable rules; regulators came after his daily fantasy sports business with stiff regulations two years ago. He already has lobbyists in every state who are familiar with each state’s regulatory profiles.

Once the kinks are worked out, Vic and Robins agreed, back-alley bookies will largely wither and die. Some might hold on by lowering the “vig,” or service charge, from the standard 10 percent to as little as 5 percent, and a few bettors might want to shun the tax man.

“Maybe some [gamblers] will want to continue because they’ll be able to avoid taxes, but I think most people don’t think that way,” Robins said. “Most people, if there’s a legal means to do an activity they enjoy, they’re more than happy to shift to that.”

The decision also will turn tech-heads ever more toward their devices. In states where sports betting is legalized online as well as in casinos, there will be in-game betting from your couch, or even from your seat at the arena. There already is, said Vic, at Golden Knights games, and there will be more when the Raiders arrive in two years. Estimates range that between 20 and 50 percent of sports wagering in Vegas occurs online. Spurred by an ongoing surge in mobile sports betting, which was legalized in the state in 2011, Nevada sports books collected a record $248.7 million from $4.8 billion bets placed in 2017.